WEST CHESTER, PA. -Based mainly on limited availability of the PlayStation2 console, video and computer games, retailer Electronics Boutique expects earnings for the three months ended Nov. 3 to be lower than First Call estimates. The company also is lowering its earnings expectations for the fiscal year ended Feb. 3, 2001.
The following factors were cited for the announcement:
- Business slowed as consumer demand for other game platforms declined in anticipation of the PlayStation2 launch.
- The reduction in manufacturing of PlayStation2 units and resulting decrease in allocation of these units limited the revenue and profit potential for the retailer in the third quarter.
- A significant drop-off occurred in PC and Pokemon-related sales.
- A number of major new releases introduced during the quarter failed to meet expectations.
Electronics Boutique, which expects these trends to continue into the fourth quarter, said the launch of PlayStation2 in late October was its most successful gaming console debut ever. The retailer said it sold through virtually its entire allocation in the initial sale weekend.