GameStop posts record annual sales of $9.47 billion

Specialty retailer hits new highs in fourth-quarter and full-year revenues, expects 2011 numbers to grow up to 8 percent.

The digital distribution sector for games may be bigger than ever, but the same can be said for significant chunks of the brick-and-mortar market. For example, specialty retailer GameStop today announced its results for the full year and fourth fiscal quarter ended January 29, reporting record revenues for both.

GameStop's specialty last year was making money.

For the final three months of its fiscal year, GameStop reported sales of $3.69 billion, up 4.8 percent year-over-year. Profits were also up, as the company's net earnings for the holiday period totaled $237.8 million, 10 percent higher than the prior year's fourth quarter.

GameStop's full-year figures were similarly strong, with the chain's fiscal 2010 going down as its biggest campaign to date, with total sales reaching a new high of $9.47 billion, up 4.3 percent from fiscal 2009's take of $9.08 billion. The year also saw the company gain traction with its own digital distribution efforts, selling $290 million of downloadable content for consoles and PCs, up 61 percent from 2009. The company also posted its highest-ever net earnings for the year, finishing $408 million in the black.

The retailer expects its fiscal 2011 to be even bigger, as it projected first-quarter and full-year sales to be up 6 to 8 percent. To help achieve that goal, the company is spending $100 million on "digital initiatives, technology systems and loyalty program support," with another $70 million set aside for store openings and remodeling of existing locations. While it expects to open 200 new stores in the US in 2011, GameStop also plans to close 200 stores, typically those with expiring leases in areas already served by other GameStops.

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Discussion

67 comments
SnonnieSnean
SnonnieSnean

i personally like gamestop there customer service is great and they have a pretty good knowledge of just about any game u ask them about.

Infinity_Gauntl
Infinity_Gauntl

I wish buying games from Gamespot was a little friendlier with exclusive content ( just like EB and gamestop get) I would rather support this website and see them get huge profits then that crap company.

polodoro
polodoro

Gamestop, and especially EB in Australia, have no hope of matching any digital distribution networks. Steam is already too big, and with the prices they charge being as ridiculous as they are, I give them less than a decade before they are almost entirely out of bussiness. I just hope they enjoy their final CoD sales because they are one dead company.

Devils-DIVISION
Devils-DIVISION

Every time here profits and money... I can't help but think of that doco 'Inside Job' - I don't know how much of it's true but it seems pretty reliable. It pissed me off so much. Every Bank CEO should be shot... Wrong place to ramble on though :)

Quezakolt
Quezakolt

Gamestop ways have now becoming utterly annoying for me as a consumer. Why do I need a 10 minutes lecture about adding this and that to a game or system? It's just free money scheme for them. No thanks!

Pete5506
Pete5506

I can proudly say I haven't spent any money at Gamestop in the past year

shinmew
shinmew

and yet the upper management is lucky to see a 75% bonus and the people in the stores not only get paid crap, but they also don't get enough hours that are really needed to run the store. YOU'RE WELCOME your greedy stock holders. You are the ones that make the lives of those that work there a living %@.

gavin78
gavin78

Digital distribution

SDBusDriver1979
SDBusDriver1979

You know when a company is doing really good when they treat they customers and employees like garbage.

emperiox
emperiox

@Apathetic Prick You have to understand that that's how Gamestop makes their money. It's a huge gamble for them to buy used games and then take a chance that they may not sell.

Apathetic_Prick
Apathetic_Prick

Their trade in values are bull****. They wanted to give me $3.25 for a game that sells for $40. I took the trade elsewhere. If they keep this up, they'll need to keep quiet about what they think they'll be making next quarter.

dawnofhero
dawnofhero

I say, if it wasn't for GameStop, we'd have to buy our stuff elsewhere like Wal-Mart.

sebetai
sebetai

I love Gamestop. I go there at least once a month.

s_h_a_d_o
s_h_a_d_o

This corporation devoured the best independent games retailer in NZ, and for that, they shall never receive my custom.

karmasbeeoch
karmasbeeoch

Wow, all this profit and the sheep still say piracy is destroying gaming. hmmmmmmp

organbank
organbank

I bet they made most of their profit from their Australian subsiduary 'EA Games' which charge Aussie gamers more than double for games...

gam3r2011
gam3r2011

back when the stores were called FunCoLand they were better because the employees were actual gamers unlike Gamestop where they dont even know who is Nintendo's most popular character

HaloPimp978
HaloPimp978

I used to get my games at gamestop, but I feel like they just rip you off. Amazon.com is my number one choice.

tommy_boy9999
tommy_boy9999

Yeah and Gamestop is not a used game store Monopoly.

jhoke13
jhoke13

I worked at the #1 (sales/pre-orders) GameStop in the US around 8 years ago. It was a great job for a young adult; it was made even better because myself and the people I worked with were... *gasp*... knowledgeable (and good) gamers. People actually liked us because we would go out of our way to help customers by doing things like repairing a scratched disk for free, giving an occasional employee discount to regulars and big spenders or giving a kid a little more store credit for his/her trades to get the game they wanted. That kind of service is what builds customer loyalty. When I first got the job the store was called FunCoLand and was just beginning to be converted to GameStop. The introduction to the corporate atmosphere is what makes GameStop less appealing nowadays. It's against the "rules" and costs more money to help someone out in today's market.

Silinel
Silinel

GameStop needs to have entrance exams for its employees to ensure the highest levels of customer service. 1. Beat World 1-1 in Super Mario World. 2. Win a race at 50cc in Mario Kart 64, using Toad. 3. In Pokemon, what item can be used on a Pikachu to evolve it? 4. Name one of the top five selling series for the following game consoles and handhelds: PS3. Wii. Xbox 360. Game Boy Color. 5. The stick used with the Nintendo DS is called a ______. 6. What four shapes are displayed on the circular buttons of the PSP and PS1, PS2, and PS3 controllers? 7. The song "One Winged Angel" is associated with what Final Fantasy villain? 8. Playstation 3 is to Move and Xbox 360 is to _______. 9. Finish this quote: ________....PAWWWWNNNNCH! 10. What does the scanner says about it's power level?

QuistisTrepe_
QuistisTrepe_

People, there are many valid gripes about Gamestop. Whining about the developer not getting a dime for their hard work because of used sales isn't one of them. Don't be stupid.

Darkmoone1
Darkmoone1

Times like this where I miss Game Crazy. At least when I traded games there, I got a decent amount back. Not 5$ or something as low as that.

daabulls23
daabulls23

I use eBay or Amazon. Gamestop feels like a ripoff when I walk through there, now. I haven't bought anything there in 5 years.

MrSelf-Destruct
MrSelf-Destruct

Wow, I bet developers are so pissed to hear that. Of course, GS generates a lot of sales for them, so they can't get too mad.

KoolzKatz
KoolzKatz

The thieves of the videogame industry thanks to used game sales they keep all the profits and developers dont see a dime of their hard work. Buy games new people, support your favorite games and its developers.

chibi-acer
chibi-acer

Pretty much the only time I'll go to Gamestop is if no one else has the game (which is pretty rare) or if they have some really cool pre-order exclusive. Other retailers sometimes have sale prices, or just lower prices in general. Gamestop's idea of a sale is to sell you a used copy. No thanks.

rbrignoni
rbrignoni

I haven't shopped at a Gamestop in like 3 years. Amazon.com is my preferred choice for games. :)

oneligas
oneligas

anyone complaining about used prices can just look at it like this and say hey i saved five to ten dollars on a game some kid bought brand new and went rage quit so he/she traded it in so i get it all fingerprint smudged, boogered up and scratched for a huge savings. Note that i only by used games if i absolutely have no other options so i can avoid the it doesn't work gotta return it for another used copy of the game game

lilboicookie
lilboicookie

:/ the gamestop i have near me are kinda evil -_- they laughed at me caused i traded MW2 2 days after the realsed like ...wth...the game sucks >.> ...than i never shopped there anymore

AuronAXE
AuronAXE

I wonder, over all the years of my life, how much revenue I'm responsible for. Would be an interesting study.

Hammstray
Hammstray

Who keeps disliking my comments?

howie1926
howie1926

@xeridae touche...I understand that this man is not on like the top 10 most wanted list. All I am saying was that IF they really wanted to bring him back, they could find him.

CJ45_
CJ45_

@Hammstray You got that right - GameCrazy/Hollywood video were the best

calebthelion
calebthelion

Gamestop is great in Idaho though I often find myself buying games off Amazon just to save a few bucks plus I get free 2 day shipping...woohoo

King_Gamer19
King_Gamer19

I really only buy from them when its there 2 get 1 free deal

NICKKELANIUS
NICKKELANIUS

[This message was deleted at the request of the original poster]

JasPlun
JasPlun

Gamestop has very high prices on used games.Quality is terrible,Scratched Discs,missing manuals,and game artwork just to begin with.I have found Game Xchange to have better quality items with lower prices and also like Amazon or Ebay.I cannot believe so many folks fall for this sorry quality.

cryofax
cryofax

I'm surprised people are willing to pay MORE for crappy service at gamestop. High prices, terrible return policy, know-nothing associates. The one thing they have going for them is the used game market, and some software companies like EA seem intent on destroying that.

deathblow3
deathblow3

wow some people arent getting their preordered stuff i think that happened to me like one time and it was sony's fault not gamestop. sounds like its your fault not theres if i have an issue with preordered stuf i sut go back to them and they fix it

Expo_Smacko
Expo_Smacko

Gamestop is cool and all, but the associates that I have encountered are either rude, or don't know what they are talking about.

tanerb
tanerb

gamestop over here only sells xbox and PS games, zero PC. So it is Bestbuy or Amazon for me

dylan417
dylan417

Very happy to see the videogame market doing well.

shadowysea07
shadowysea07

good for them though i prefer record exchange and sites like ebay and such normally since i can find whatever i'm looking for easier and cheaper. though i did just find a nice new copy of a game i was looking for at record exchange for 20$ which isn't bad considering the game while 6 years old isn't easy to find due to limited printing.

gohoanq
gohoanq

I preorder all of my games at GameStop and shop there for random games 99% of the time. Love the store near me, so that's why it gets all of my money lol

2bitSmOkEy
2bitSmOkEy

All my gaming money goes to Steam nowadays.

Diablo-B
Diablo-B

Gamespot makes most of its cash from used games. Thats why any gamespot you go to they will always try and pressure you into getting a game used instead of new.