GameStop Posts Mixed Q1 2025 Results as Nintendo Switch 2 Continues its Launch

GameStop may be trying to break its way into news headlines this week, following the much-anticipated launch of the Nintendo Switch 2 on June 5, with the release of its Q1 2025 financial results delivered via its investor website.

The figures contained within GameStop’s first-quarter 2025 report were decidedly mixed. Net sales tumbled by about 17% year-over-year, from $881.8 million in Q1 2024 to $732.4 million during this year’s quarter. On the other hand, selling, general, and administrative (SG&A) expenses were trimmed to $228.1 million, set against $295.1 million in the year-ago period.

Finally, net income came in on a positive note, with GameStop realizing $44.8 million in Q1 2025 versus a net loss of $32.3 million a year prior. Operating loss was also cut back to $10.8 million for the quarter, compared with $50.6 million during the same time frame in 2024. That figure included $35.5 million of impairment charges related to international restructuring efforts.

As Retail Dive noted, GameStop incurred an impairment charge of $18.3 million tied to its exit from the Canadian market, in addition to a $17.2 million impairment charge connected to its departure from the French market.

GameStop Sees Gross Profit Increase in Q1 2025, Largely Due to Shift Toward Higher-Margin Products

Citing a recent SEC filing coming from the games and collectibles retailer, Retail Dive underscored another interesting data point: GameStop posted a gross profit of $252.8 million in the first quarter of 2025, largely due to “a shift to higher margin product categories, specifically collectibles and preowned hardware and accessories.”

And while the results (and the data which comprises them) precede the launch of the Nintendo Switch 2 — the first quarter having concluded as of May 3 — it’s unlikely that GameStop’s long-term fortunes will see a significant boost, even though it is a primary retail touchpoint for sale of the console. Margins on new hardware and software are notoriously slim, and the phasing out of physical media in the video game market means that GameStop’s pivot to collectibles, as well as used hardware and accessories, is necessary.

Show a Switch 2 receipt from anyone to trade your old console in for a 20% bonus. Now until 6.15.25. pic.twitter.com/XQAnM1QXYQ

— GameStop (@gamestop) June 7, 2025

A recent GameStop promotion indicates that the retailer doesn’t care if you bought the Switch 2 from another source, as long as you trade your old hardware in for credit towards store merchandise — emphasizing the necessity for GameStop to be holding a healthy inventory of used consoles and accessories.

GameStop has been making some drastic moves as of late, whether one considers the exit from the aforementioned international markets (also departing from Italy and Germany) or the closure of almost 600 U.S. stores in 2024. More recently, the red-white-and-black brand has been spurring discussion surrounding its massive buy of 4,710 Bitcoins in May, valued at approximately $512 million at the time. That move was preceded by a board vote held in March which gave the retailer the green light — via unanimous decision — to add Bitcoin as a treasury reserve asset.

GameStop’s annual shareholder meeting is slated to take place June 12.