DA
07-27-2009, 08:36 PM
Video games are big business for Amazon.com -- big enough that when the industry starts to slow down, they know it. Accordingly, the online retailer listed flat video game sales as one of the reasons for a recent drop in profits. "You're seeing an industry slowdown in video games and consoles," Chief Financial Officer Tom Szkutak told the Wall Street Journal (via Joystiq). Amazon posted a 14 percent revenue increase for this year's second quarter, but nevertheless saw profits drop 10 percent. Aside from video games, the retailer blamed weak books and music sales, as well as $51 million legal settlement with Toys R Us. The summer has traditionally seen a lull in new releases as publishers gear up for the holiday season. Console sales dipped a bit in May, but have jumped across the board for June. Looking ahead, the holiday season still figures to see strong sales, even as major releases like BioShock 2 are bumped to 2010. In these sour economic times though, Amazon is being cautious.