Gamestop made less money for the first three months this year than last year.  For the next 3 months, they are expecting further weakness in their underlying business.  Most of the blame is not coming from their digital sales or used sales, but the sale of new games and system.

http://www.reuters.com/article/2012/05/17/us-gamestop-idUSBRE84G0ON20120517

Shares of the world's largest retailer of video game products were down $2.12 at $18.72 on Thursday morning on the New York Stock Exchange.

For the second quarter, GameStop expects earnings of 10 cents to 18 cents per share, below analysts' estimates of 25 cents per share, according to Thomson Reuters I/B/E/S.

Net income for the first quarter fell to $72.5 million, or 54 cents per share, from $80.4 million, or 56 cents per share a year ago.

Revenue fell 12 percent to $2.00 billion.

Analysts on average were expecting earnings of 54 cents a share on revenue of $2.05 billion.

GameStop, which competes with Britain's Game Group Plc GMG.BE, said same-store sales plunged 12.5 percent, when it released preliminary earnings last week. It blamed the quarterly sales slide to the lack of blockbuster game launches.

U.S. sales of videogame hardware and software fell 32 percent in April, after similar declines throughout the first quarter, according to market research firm NPD.

Games software sales declined 42 percent last month, NPD said.

Sales of traditional video game products such as consoles have weakened globally as gamers turn to lower-priced online offerings and spend more time on their tablets and phones.

(Reporting by Chandni Doulatramani in Bangalore and Malathi Nayak in San Francisco; Editing by Sreejiraj Eluvangal)

Yep our sales will be down, consoles aren't selling at all and thats the big issue.

We need next-generation badly, in fact the entire industry does.

i'd update your resume.  betting on next gen saving anything is bad money.

On the conference call, the CEO expects to rake in billion from people trading in their last gen equipment for Wii U stuff, which I do see happening to that great of extent.

Company made, for the first time, more money from their used side then their new.

Why would I update my resume?  We are still massively profitable.

And next gen will help, quite a bit actually the problem is this generation has simply gone on for too long, people aren't buying consoles and they aren't buying as much software because they already have tons of games at home.