GameStop quarterly profits climb 7%

Top game retailer banks $80.4 million during Feb.-Apr.; Pokemon Black & White, Mortal Kombat, Marvel vs. Capcom 3, Call of Duty: Black Ops, Homefront pegged as best sellers.

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This morning, GameStop reported its earnings for the three months ending April 30, 2011. The quarter--the first of the specialty retailer's fiscal year--was a profitable one, with the company earning $80.4 million in net income on a record $2.28 billion of revenue. That was a 6.9 percent increase from $75.2 million in profits and a 9.5 percent boost from the $2.08 billion in revenues GameStop took in during the same period in 2010.

GameStop had a record quarter with $2.28 billion in revenue.

The company credited the uptick in profits to strong sales of high-definition consoles (that is, the Xbox 360 and PlayStation 3) and the US Nintendo 3DS launch, which took place on March 27. Overall, hardware sales rose year-over-year from $348.3 million to $432.4 million. New software sales also jumped from $873.1 million to $914.7 million, while used software sales went from $570.8 million to $625.0 million. Sales from the company's digital divisions, which include casual portal Kongregate, were up 53 percent.

In a statement, the company listed its top five best-selling games for the quarter. They were Pokemon Black and White from Nintendo, Mortal Kombat from Warner Home Video Games, Marvel vs. Capcom 3: Fate of Two Worlds from Capcom, Call of Duty: Black Ops from Activision, and THQ's Homefront. The company did not reveal the exact number of units each game sold.

Discussion

37 comments
SSJ4Goku2
SSJ4Goku2

@okassar, I totally agree with your comment, I am an internet shopper 1st, then I hit store if they have good deals. Good to see others who know where the deals are. :)

SSJ4Goku2
SSJ4Goku2

Its only a matter of time before walmart decides to buy gamestop, and you will see gamestop employees in the walmart electronics department at a gaming booth answering your mom and dads, and grandparents questions about whether or not they should get 6 year old jimmy a Xbox 360 or PS3 with mortal kombat,...LOL!!!

TWayne1020
TWayne1020

Don't go there much since they quite sending coupons via email !!!

majin_lebeau
majin_lebeau

Gamestop is huge everywhere now, I am from new york city and I am stationed at Fort Hood. Does anyone else notice that Gamestop tends to higher females between like 17-24, who are not real hardcore gamers. I go to home depot to buy tools, the employee knows alot about what they are talking about. I don't tend to see that much at Gamestop.

Drakkengoth
Drakkengoth

That's great for them! now if they only werent so unbelievably unfair with trade-ins, id actually regard them as a good company.

g1rldraco7
g1rldraco7

I love gamestop so much. I know everyone at the one in the west covina mail.

SuperSonic393
SuperSonic393

That's good. I go to gamestop for my game shopping because of their powerup rewards program and a high selection of games.

armandoisgreat
armandoisgreat

That's good. I like gamestop for the most part, but boy do they screw you with the trade ins. I traded in over thirty games and three consoles for a ps3.

decoy1978
decoy1978

Good for Gamestop. In an economy where everything is taking a hit, people are looking for ways to escape all that. Video games are it!

BlackBaldwin
BlackBaldwin

Kiddes kiddes kiddes.... I see alot of comments on people moaning over how gamestop makes a profit on used games and buying out their opposition and such... If you know anything about retail they aren't the first ones to do it. Do you know where gamestop got their ideas from? Does a little company by the name of walmart ring any bells to you? Every concept gamestop uses walmart does it worse its just a way of life....

pokecharm
pokecharm

good for them - I know I contribute to them more than anywhere else for their exclusive content :)

BasicLogic
BasicLogic

Physical copies of movies died out due to digital versions from Netflix, so I'm wondering if GameStop will eventually fall to a Netflix-style version where the games are automatically sent to the house. Like steam, for example. I think both are great ways to get games.

FonikhSoupia
FonikhSoupia

@KoolzKatz That is probably why most companis nowadays are making good use of the "online pass" for 800 ms points! The price of used games just went up....

jefer12
jefer12

See yeah!!!!! i don,t know why there is n,t any tps here !!!!!

mariokart64fan
mariokart64fan

3ds people 3ds , i think the hd twins are wearing out , what the heck is left in it this gen especally at 60 a pop , gamestop is a rip off , i dont see why id buy a game from them when they first come out any how, any one who does be ware their return policy is the lamest of all and they even try to sell used games as new lol thats what makes them the worst place to go , for new releases , sure for old releases fine but day one -- especally with disc based media be careful you might be the next victim to pay 60 bucks for a used game lol

okassar
okassar

Gamestop is actually running promotions and handing out exclusive DLC now, so this is no surprise. I still prefer Amazon or pretty much any other company that gives out bigger discounts at a faster rate.

KoolzKatz
KoolzKatz

Just like the Fable 3 dev said recently used game sales are worse than piracy. In an economy where studios are closing and an industry which is getting harder and harder to compete you have Gamestop stealing from everyone. Used game sales are theft to the companies that makes the games, they see no profit from it

Lazay727
Lazay727

well yeah when you have a monopoly, profits tend to rise, kind of a nonstory but i guess you had to report it.

JusticeFromSeed
JusticeFromSeed

@gatsbythepig Apologies, the final comment about ignorance was a general statement, not one aimed at you directly. Rereading it, it does appear to be aimed at you. Hindsight is 20/20, as they say...

gatsbythepig
gatsbythepig

@JusticeFromSeed I hear you buddy. I owned quite a few shares of GameStop for the last few years. They seem to be an unstoppable force moving into other countries and taking over all other companies like them. I sold because I believe the time is coming. I hope soon, basically because I sold my shares already. My comment about faking the numbers was supposed to be a bit of a joke. I suppose it is difficult to relay that sentiment in writing. . Ignorant? After such a well thought out and written response from you I was surprised to see that last comment(thems fightin' words). I will admit though, I can always learn more.

JasPlun
JasPlun

50-60% of their games are scratched,missing cover art,or the game manuals and they have the highest used game prices around.It looks to me like a whole lot of gamers out there are getting the shaft!!! I have found Amazon Warehouse deals or Ebay Like New Condition games are the only way to go:)

Sohereiam
Sohereiam

That's a good thing it means that physical copies still rules, but what is a bad news is that after Netfix ruined the rental video business the companies only blame piracy, not their ego's.

bbkkristian
bbkkristian

Its all because they finally opened up a store in my area. :P We've been without a video game store for about two years.

warpig4ever
warpig4ever

Funny story, When I walked into gamestop, I didn't even know they had Pokemon Black and White for sell, still got it though.

MVCFreak
MVCFreak

Congrants to Mortal Kombat and Marvel Vs. Capcom 3 for Bringing Back Fighting Games to Mainstream.

JusticeFromSeed
JusticeFromSeed

@gatsbythepig GameStop is one of the few major corporations OPENING new stores every year, not closing them. They do pretty well. I worked for them for a few years and, while I'm no fan of their employee-corporate relations, they do very well in sales. My store, in a medium-to-small-sized town of around 35,000 people, made just under $2mil a year. I agree that the digital market will likely take over GameStop in the future, much like Netflix did to the video rental business, but that is a ways off. People still like being able to have a physical copy in their hands, and console producers still use physical mediums for the games. Sony attempted to break that with the PSP Go, and it failed. Hard. People aren't ready for digital game ownership just yet. In part, I believe, because many people don't have broadband internet access.

HT89488
HT89488

Looks like Gamestop is going to be a target soon, they appear to making to much money. Isn't that how it normally goes?

holtrocks
holtrocks

Black ops still i swear Activision is paying them to say that and for websites to give them good reviews because anyone over 12 can see that its the same rehashed crap if gamespot gives the next MW a 9.0 are better i am walking because i can tell you right now that it will be the same has BO just a dif era few new guns and maps and everyone and there mother will buy it. BATTLEFIELD 3 THE SAVIOR OF THE FPS GENRE!

twistedmalice
twistedmalice

What else is new. They always do well especially when the promote big titles in there stores and online. Plus with selling used games they make a killing. I can't always afford new games unless its something I really want and buying used is a plus especially with there discount card. I like it. I know alot of people my bash it but they keep on moving forward.

collinmul
collinmul

I keep wondering why they sell so many units of new games. Best Buy has gift cards with purchase, KMart has gift cards with purchase, Walmart has gift cards with purchase, Amazon has gift cards with purchase. And GameStop....doesn't. It all makes no sense.

pie369
pie369

@gatsbythepig GameStop is making money because you can either, hypothetically speaking, buy a $29 game off of, say, XBL Steam or (if its ever up again) PSN, OR you could go up to GameStop and buy the same game, guaranteed to work for $10 less.

Metalshin0bi
Metalshin0bi

Hooray for Portal Kombat 2!! Great team of releases :P Homefront on the other hand... >_>

gatsbythepig
gatsbythepig

Seriously? There is no way they are still making money. I bet we all find out in a few months that Gamestop has been fixing the books. . The software companies selling online passes and digital distribution should knock GameStop out soon.