Videogame sales boost profits for Best Buy

US retail chain Best Buy has published its third quarter financial results, attributing the rise in profits and revenues to improved sales of videogames.

Revenues for the quarter rose by 16 per cent to hit US$ 8.5 billion, while profits stood at US$ 150 million - bringing the total for the year so far to US$ 614 million, up from US$ 496 million in 2005.

According to Best Buy, videogame sales rose during the quarter and accounted for 17 per cent of revenues for its entertainment software group. The retailer attributed the increase to the launch of PS3 and Wii, plus continued sales of PS2 and Xbox 360.

Sales of music CDs were down during the period, and overall the company reported only a small rise in profits - missing its own targets.

"While a very competitive climate put pressure on our margins, resulting in earnings below our original expectations, I continue to support the strategic choices we made," said CEO Brad Anderson.

"The market share gains we saw, and the new customers we acquired, give us momentum as we begin our fourth quarter, which generates the largest percentage of our earnings for the year."