GameStop Q3 profits hit $52 million, Modern Warfare 2 sets record

World's largest specialty retailer says Infinity Ward's shooter sold 2.5M units in 72 hours at its stores; quarterly earnings hit $1.8 billion.

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Among the first of many records that Activision's Call of Duty: Modern Warfare 2 smashed this month was GameStop's high mark for most-preordered game. Following its November 10 debut, the first-person shooter went on to achieve opening-week sales of $550 million, besting Harry Potter and the Half-Blood Prince's five-day global box-office record of $394 million and Grand Theft Auto IV's week-one global haul of $500 million, among other achievements.

A man falling, or a vertical high five?

Now, Modern Warfare 2 has yet one more feather to add to its cap. As part of GameStop's third-quarter earnings report today, the gaming retailer said that Activision and Infinity Ward's acclaimed shooter has achieved the biggest launch in the company's history. GameStop said that it sold more than 2.5 million copies of Modern Warfare 2 at its stores worldwide within 72 hours of release.

As GameStop's third quarter expires October 31, Modern Warfare 2's success won't be reflected until the specialty retailer's next fiscal period. Still, GameStop turned in a solid earnings report today, announcing Q3 revenues hit $1.83 billion, an 8.2 percent increase from the year-ago period. Net income for the period rose 11.8 percent to $52.2 million, thanks largely to a 19.4 percent uptick in used-product sales.

The retailer's top-five performers for the August-October period won't come as much of a surprise to anyone who follows the NPD Group's monthly sales reports. GameStop's top-selling games, all of which met or exceeded the company's expectations, were EA's Madden NFL 10, Microsoft's Halo 3: ODST, WBIE's Batman: Arkham Asylum, 2K Sports' NBA 2K10, and Nintendo's Wii Sports Resort.

Looking ahead, GameStop expressed optimism over its sales prospects during the holiday shopping period. The company said that strong starts from Modern Warfare 2, as well as New Super Mario Bros. Wii and Assassin's Creed 2 portend healthy fourth-quarter earnings. As such, GameStop reaffirmed its guidance range of $1.47-$1.65 earnings per share during the quarter, with a full-year EPS forecast of $2.45 to $2.63.

Discussion

119 comments
TheRealUser101
TheRealUser101

Activision, being Modern Warfare 3's publisher, is showing the games multiplayer at the Call of Duty XP convention on September 2. All of the Modern Warfare 3 perks, weapons, maps will be shown there. MW3 is going to be great.

aaronfhff123
aaronfhff123

@flint247 so if modern warfare showed wounds on the bodies of you enemies when they get shot with your weapons you wouldnt like the game? If it had the same action with just a touch of carnage that guns realy do leave you wouldnt like it???...dont lie you would love it even more. Nothing is more satisfying than shooting a wounded german in the face and seeing their face turn red. It wouldnt hurt he gameplay at all it would just add to it. Its not liek waw had a unrealistic amount of gore like Soldier of fortune. There was a moderate amount. And in warfare people get flesh wounds from bullets. Explosives do take off legs. If you dont believe that than you are insane

aaronfhff123
aaronfhff123

@chickenchap i never said it was realistic i just said the carnage was realistic. Guns do leave marks on people, explosives do blow off limbs...infinity ward doesn't seem to get that. ANd it was not a downgrade it had the SAME EXACT engine as modernwarfare with a ww2 setting. It was an uprgade in that it had tanks, dogs,zombies and more carnage. For me carnage along with great shooting action(bought to us by modernwarfare engine)make for more satisfying gameplay. I dont know why all these idiots keep giving me thumbs down. Guns do damage to people they are not toys and WAW showed us that gritty side of war. War is violent. When people get shot with guns the bullets rip through flesh. they dont just make people fall over with no wounds like modernwarfare showed you guys.

condelirios
condelirios

I think the key at Gamestop is to watch for the trade in special deals. They will often give much more during a promotion that at other times for old titles. For example they will run a trade ANY 3 games toward a certain new game and get 50% off the title. You trade in 3 old copies like Madden 03, NBA 2k6 etc... which would normally get you a cup of coffee if you are lucky and get $25 off a game you really want.

Sins-of-Mosin
Sins-of-Mosin

The biggest pirate of them all, Gamestop, continues to make more profit while the dev/pub get nothing.

Bevmo
Bevmo

[This message was deleted at the request of a moderator or administrator]

chickenchap
chickenchap

haha that is still stupid, in my opinion, WaW was a downgrade and a waste of 60 bucks, I should have just waited till it was 20 bucks, and it was not realistic at all, it's a video game.

Flint247
Flint247

Good thing MW2 doesn't have gore. (this comment will probably be marked real low for saying that)

aaronfhff123
aaronfhff123

@chickenchap have you ever played WAW? Pistols dont blow peoples arms off at all in waw only shotguns and heavy machine guns and explosives. It's the same exact engine as cod4 with a realistic amount of bullet wounds and gore. Its not a downgrade its just an older setting.

eplayanime
eplayanime

@StephenBassford Hey, I know exactly what you mean. I came in to Gamestop to trade a few game. I gave them Uncharted in mint condition. Only played the thing once. Only gave me $5 for it. I was ticked. That's why I try to buy anywhere else but Gamestop. I preordered Fragile Dreams for wii, out of gratitude to Xseed. But that is it.

jshaas
jshaas

@StephenBassford... I agree that Gamestop's trade values aren't great, but your example of a sports title will have the worst value because they're updated every year. I think kopedawg actually makes a good point, and it's one I've never really thought of before. Some people like to trade games in, some don't. Gamestop makes so much money off of used titles. Just think you trade in a game for $20... then Gamestop sells it used for $45 - $55... that's as much as $35 profit from one game. Put that together with people that won't buy a new game because they don't like the developer (Activision), or the people that buy used because saving $5 - $10 per game is huge for them. Gamestop has done very well with this market, and will continue to do so as long as games are made. That's why other retailers such as Best Buy have trade in programs now.

monson21502
monson21502

gamestop black friday ads are out. alot of new games are 40 bucks!!!! meanwhile every other store in the country has new games for 35 bucks.:wink:

chickenchap
chickenchap

I agree with doontime and airshocker 100 percent. and @aaronfhff123 you have no idea what you are talking about, the campaign was not good at all, plus WaW was a downgrade from cod4 and you don't need gore in every game, I mean who has ever heard of a pistol blowing someone's arm off! Just stop it with the stupid gore. Also if you work at gamestop and are complaining right now that is your fault for working their, stop working there if you are going to be a baby.

StephenBassford
StephenBassford

@kopedawg My buddy went to Gamestop to trade in a few games. They offered to pay him $1.20 for NBA 2K9. I'm sorry, but that's just rediculous. But wait! They offered to give him an extra 15 cents if he used it for in store credit. So if you do the math, my buddy would have to trade in 50, yes FIFTY, games like that to get enough money to buy a new game. I'm sorry, but this is rediculous. Screw you Gamestop.

kopedawg
kopedawg

Gaming is entertainment, just like going to the movies. At the movies, you buy your ticket, you sit in the theater for 2 hours, and you leave with the piece of paper you bought for $10 (movie ticket) and the memory of the movie. Neither of those things is worth anything but the entertainment value you got for them. Try trading in that ticket stub for money off your next movie. At your favorite retailer, you buy your game, play it through in anywhere for 15-40 hours, and you're done. You may keep it for multiplayer, or you may keep it because you think you'll play it again. If so, do that. If you keep it, and it just sits on the shelf for 2 years, and noone plays it or even remembers it's there, then you're a moron. That game has more value as a trade in than it does sitting on a shelf. So quit whining about trade in values, especially if you've ever paid for a movie ticket.

BloodMist
BloodMist

Too bad Gamestop is a crap company and doesn't deserve a dime.P.S. We get that MW2 sold a lot.Ok then, enough.

slysamm
slysamm

@ d_kell411 awesome!!! also i think its living up to its hype haha (mw2 that is)

d_kell411
d_kell411

The day Mw2 came out Gamestop was having a special awards offer where they were paying more for used games. Essentially, I got rid of some crap games I never play anymore and actually made a few bucks while not paying for MW2. Plus, they gave me a cool poster. :)

DamnedApples
DamnedApples

I don't want to be an advertisement for any retailer, but I gotta say...Amazon Prime has been on my good side lately. I wasn't going to pre-order L4D2, but they offered me free release date shipping, no tax, $5 off and a $10 store credit for anything game-related...which I promptly used on an xbox live 3 month subscription card, which was also marked down on their site. They offer trade-ins now as well. I like GameStop employees, but I'm glad the company is going to have some adequate competition for once.

da_chub
da_chub

And Gamestop would like to thanks all the suckers who trade a $50 game in for $12 so GS can sell it again for $45. sadly, they do have the best selection of games around.

swamptick
swamptick

Glad to hear it. I like Game Stop.

Attoyou
Attoyou

Great online play , the single play was great but way too short ! if the single play would have been longer i would have already dubbed it GOTY , but for now Uncharted 2 has its claws dug into GOTY for me.

rohan_kamps
rohan_kamps

another choice for u guys is assassins creed 2 giv it a try , chek the reviews n all other stuff..i hav tat 2 ..and itz a lot of fun 2....

rohan_kamps
rohan_kamps

luk guys i agree with with u that they shuad hav invested more on campaign. but this game didnt sell soooo many units for no reason!! its star is the multiplayer which is unbelievable and offering unlimited gameplay time!! and also the campaign short but intensively full with action and also re playable....and with soo many users now the multiplayer will be awesome....im a user i am recomending this game to all of ya..... if u dont want itu are missing a great one....and the guys who hate this i request them 2 giv this game another chance n im sure it will blow ur mind away...next is ur wish....im just a common person searching a fun factor in a game...

KittyHeart
KittyHeart

gamestop , an evil company, is profiting from mw2 at 60 bucks a game. btw, did you guys know that so many ohter retailers were offering gift cards ($20) when you bought mw2 from them? there was no reason really to go to gamestop.

CosmoS73
CosmoS73

Gamespot is making money despite the bad economy. Good for them. I have purchased a few games from there and I think I got a pretty good deal. I never trade games in and I don't go for the bad hype... I'm careful... and so should everyone else... always... let the buyer beware. There is no cure for stupid you know... so wise up nay sayers and get your game on.

Flint247
Flint247

I can't be mad at Gamestop; they actually helped me get some money for a game I wanted when I had no job or choice.

armyofrobots
armyofrobots

hey, grats gamestop...now pay me more than $10 an effing hour. Schmucks. You boast about your Q3 profits yet you continue to scam stores on hours they fully deserve so you bastards can report a $52 million profit. Seriously. The way you run a business should be illegal. I swear to Christ I'm going to end you one day.

Icedburden123
Icedburden123

Has anyone seen their Black Friday ad? It's a goddamn joke.

ColonelX24
ColonelX24

Can't wait to see those Q4 sales, after those I can agree with "the stimulus is working" speeches.

steelmouth
steelmouth

enuf already with the MW2 records

gamer082009
gamer082009

People still buy games from GameStop? Aw well, they're a good place to buy used gaming hardware from if not off of Ebay..Last game I bought from GameStop was Gears2.

-Fromage-
-Fromage-

Lots of games sold and lots of money earned it seems.

Tauu
Tauu

Back in the day, gamers played all types of games. Action, fighting, racing, RPG, shooter, gamers played them all. Nowadays it's all about that next big FPS release that breaks sales records. I have to keep reminding myself that this is just a fad that will pass and just weather it out in the meantime.

x_Xarion_x
x_Xarion_x

I suppose it's not hard to turn a profit when you sell the same copy of a game 5 times. Too bad they don't pay the people that sell the games, extended warranties or member cards better for their efforts.

xialon
xialon

"2.5 million copies of Modern Warfare 2 at its stores worldwide within 72 hours of release." Holy $h!t. That's 96 copies a second....

amad3000
amad3000

I dont think i'll ever trade in MW2. I have no multiplayer game that tops this.

GiRiSh1982
GiRiSh1982

I wonder...how will be Assassins Creed 2 sales with CoD 6 in such a demand. Anyways, I have playing AC2 and it's great fun...

Grampy_Bone
Grampy_Bone

What happens when half the people who bought MW2 trade it in? Do they really think they're going to sell any more? Everyone already bought it! Expect a deluge of used MW2 copies post xmas.

TheBlackSpeed
TheBlackSpeed

I work at a GameStop. Don't really umm..want to get in the "drama" that's going on but I enjoy it. And umm..yeah..it was really really busy that night. Yeah..That's it..

ItsEvolution
ItsEvolution

I don't mind my local Gamestop, I'm friends with most of the employees there (I manage a store in the same mall), so they don't try to scam me on stuff. And if I have games to get rid of, I'll sell them on Amazon. If you trade stuff in, you can't complain.

Goldylocks33
Goldylocks33

I think it's funny people bash games. Honestly, just because you're terrible at something doesn't mean you have any right to degrade the quality of the title. As for the gamestop income, I do feel terrible for the workers. Several of my friends work for a local gamestop, one of them who has been with the company for over two years. His raise on a yearly basis is on the accord of about 5 cents. Gamestop really needs to step up and show their employees a little respect for driving their sales so much.

glimpus
glimpus

if you must trade a game in, try ebay instead. youll get more money for your games.

pikepig
pikepig

ok, the true gamers who work at GameStop really hate seeing GameStop talk about the record quarterly profits...i know i do. because it is us, the little people, who do all the selling...gets cussed out because of the ridiculous trade in prices...and all the other stuff people complain about. We are forced to work 50-60 hrs a week b/c they have to cut payroll so they can increase their stock price by 10 cents...it's just sad really. We would love to tell you we agree with you, but we have to get you to reserve stuff, buy subscriptions, take surveys or we will get fired. The opening of games is one of my biggest pet peeves...i hate doing that, b/c i will not buy a game that has been opened...but we are told on a daily basis, "gut everything"..."people have to know you have it"...anyway, i'll step down from my soap box now.

aGiantSquirrel
aGiantSquirrel

Thats amazing. Video games are now outselling movies. Who would have ever thought?

doontime
doontime

@xtremeflem2day, alot of games have short campaign now and the multiplayer is like other shooter games as well you run and shoot, that's what alot of multiplayer shooter games are and almost all of them are like that. And the story mode thing, look at halo, gears of war, they had short stories so I hope those aren't games you think are better then cod, they are alot alike.