GameStop sales up 3.5% in Q3

Specialty retailer posts fifth straight quarter of revenue growth on strong slate of new releases, expects Kinect in short supply through holiday season.

The US retail gaming industry has been slowly emerging from a disastrous 2009, but it's still having a hard time posting consecutive months of growth. Those woes haven't been reflected in the results of the largest specialty gaming retailer, as GameStop today posted its fifth consecutive quarter of year-over-year sales growth.

GameStop.com is the second-largest online game retailer, behind only Amazon.com.

For the three months ended October 30, GameStop reported total sales were up 3.5 percent to $1.9 billion. The retailer attributed the bump in part to a strong slate of new releases that pushed new software sales for the quarter up 9 percent. GameStop's top selling titles for the quarter were Halo: Reach, Madden NFL 2011, Fallout: New Vegas, NBA 2K11, and Medal of Honor.

Profits were also up for GameStop, as the company reported net income of $54.3 million for the quarter, up 4 percent from the $52.2 million it posted for the same period last year. The most profitable chunk of the company's business remains used game sales, which accounted for nearly 46 percent of the company's gross profits. However, new game sales brought in the largest share of sales for the company, making up 44 percent of total revenues for the quarter.

Although Microsoft's Kinect launched after the company's third quarter ended, the motion-sensing peripheral was a point of focus for the retailer. In a post-earnings conference call, GameStop president Tony Bartel said the company was "very pleased" with sales of the peripheral and said the company's "biggest opportunity" for the holiday season is simply keeping the Kinect in stock. He advised anyone who sees the system on shelves to pick it up, cautioning that it will be in short supply for the holidays.

Based on new game sales trends and the launches of the Kinect and PlayStation Move, GameStop raised its full-year earnings expectations. Previously, the retailer expected to post earnings per share of $2.58 to $2.68, but that range has been amended to $2.63 to $2.69.

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Discussion

50 comments
pathogenb
pathogenb

shinmew had it right. they pay their employees crap wages and expect the world. and even if your sales #'s are great, your DM will care less if you didn't push enough copies of the latest CoD game or whatever their "focus five" games are @ the time. they also shove GameInformer subs and pre-orders down everyone's throat. you can blow away all other stores in your district in sales, but will catch all hell if your subs and pre-orders are low (which is hard in mall locations = impulse stores). GameStop sucks as an employer, but @ least you can take games home for free... which they always told us not to mention to customers. i guess a "hey, i played and loved that game!" recommendation means a lot less if you add, "but it's not like i had to pay to play it". ha HA!

j-force01
j-force01

uhm where to download the nba 2k11 v1.2 patch for ps3? or is an automatic upadate when you connect your ps3 online... HELP

KrazzyDJ
KrazzyDJ

@blackrace: "It's obvious that Gamespot makes a LOT of money selling used games. I saw a kid come into Gamestop with his Dad. He traded in Halo 3, Bioshock, Mortal Kombat -vs- DC, NFS: Shift and Madden 2010 for Fallout 3: New Vegas. lol!! He could have sold all those games on Ebay and made over $100 easily and then bought 2-3 games. Gamestop trades your games for cheap. Something like Madden 2010, they'll give you $9-12$ for it then sell it for $35-$40 used. None of that profit goes to developers or publishers. It all goes straight to Gamestop. It's like getting profit twice for the same game. That's why 46% of their profit are from used games." After reading this, I realized that what I wanted to say had already been said. This is clearly the most important comment of the post in my opinion. Thumbs Up !!!

Tevi
Tevi

I love gamestop its gamers paradise and its a esential part of mall shopping experience its also good place to buy gifts .

wiifan001
wiifan001

only 3.5% for this quarter? You drop at a much faster rate annually than you do these puny little uppity occasionally for the quarter.

D3thN1gh7
D3thN1gh7

Well this certainly does not surprise me. New titles and the holiday seasons means huge cash payouts for many companies like GameStop.

MOwens9512
MOwens9512

Well that's nice. Gamestop's given more reason to rob people blind and undercut gaming retail sales LOL Awesome.

hallgren
hallgren

@ Reiken37 Your math is so off it is laughable 10% of a $60 game is $6 dollars, after 4 games I have earned my money back, my move bundle this year cost me $70 after taxes so that one purchase paid for my year subscribtion! as far as hardware goes it's the same price everywhere so hardware isn't factored in. I don't know what else to tell you except you are wrong!

blackace
blackace

I don't hate Gamestop. I do preorder some of my games with them as they usually offer some nice bonuses and I've gotten a LOT of free swag from the managers who work at the stores. Well, I usually bring them back T-shirts and swag from E3 for them, so it's a win-win for us. It's always fun chatting with real gamers who know games. Even if I pre-order a game with them, I may still get it elsewhere. I usually get my new games from Fry's Electronics, because they always have a $5-$9 off sale on some new games. Amazon.com also has some great deals. When all else fails, EBay is the place for used games. I got Modnation and TimeCrisis4 w/Guncon for like $25 each and B:BC2 for $35. That beats paying $49-$59 any day.

blackace
blackace

@unreal_master @blackace You are true in what you say, but does my money not go to devs if i sell my games online? *********************************************************** If you sell your games on EBay, that money goes to you? Depending on if you bought the game new or used, you may or may not make a profit. Still, you will get more money back that way, then selling your games to Gamestop or Bestbuy. I've sold lots of video games and DVD's on Ebay and Craig's List. Then I use that money to buy more games and DVD's. Even trading games with your friends is a better deal. The only ones who get a great deal when you trade your games to retailers are the retailers. I think a lot of people do this because 1) It's simple and quick. 2) You can get a new game right on the spot. 3) They aren't aware of the other ways to sell their used games.

MJR006
MJR006

its all call of duty....when call of duty cools down there sales are gonna drop again....

Pete5506
Pete5506

I don't really shop at gamespot, but good to see that they are doing well

kintama88
kintama88

gamestop and their exclusive DLCs..... how can i say no to getting more without paying more!

wiidsduelpack
wiidsduelpack

Best Buy trade-in games are a rip-off. They are now worst than Gamestop. I think the best thing is to keep your games or sell them early to Gamestop. Or make a friend with an edge card buy it for you

Reiken37
Reiken37

@hallgren That system only works if you are buying 10-15 full priced games (60 dollar) a year with several of them being pre-orders. I did the math and if they do cost 5 bucks more then you are only saving 1.50 on that 10% off deal, which is so minisucual it doesnt even measure to buying a game used from gamestop and getting 10 dollars off. Not to mention the 25 dollar base price. If you preorder no games, in order to get back that 25 dollar price you need to buy 18 games to pull any sort of saving whatsoever. If you preorder 3 games then you only need to buy 10 games to make it barely over the bar and worth it. Also, this is all under the assumption that you are buying no hardware and 0 used games (should you purchase at gamestop). With hardware factored in along with used games your savings are stunted much more. Not meaning to bash your store, but unless that is the kind of schedule you run then it's not worth it. I buy like 10 games a year, but most of them are PC games and are bought over Steam with a nice discount. So all in all if you are in the market for PC games, its Steam. Anything else, GameStop.

shinmew
shinmew

The only reason they keep making more money in these bad times is because they don't pay their workers what they are really worth. Even the DM's are underpaid.

hallgren
hallgren

Not in the trumbull mall or any other F.Y.E I have shopped in they are the same price as Gamestop or any other retailer. the savings I qouted before are all year long except the $10 dollar credit when you pick up the game you reserved that lasts to the end of the year. I don't know where you buy your games but I have saved $8 minimum on 59.99 games, sometimes even more with store wide sales. I am not getting ripped off at all I have saved over $250 dollars on games and accesories alone and I will save a bunch more before the end of the year. So enjoy paying more for your games in another store I will keep saving money like I do!

monson21502
monson21502

@hallgren,FYE is a nice place when they have sales . but their games are 65 bucks new. im no math wize but i think you are getting ripped off with that 10% off for 25 bucks a year

monson21502
monson21502

last week the gamestop dude said kinect would be easy to get because ms has sent them a ton of them. now its gonna be hard to get?

chuckworth
chuckworth

I love Gamestop!! who else is going to buy my broken xbox360...

GCwasthebestsys
GCwasthebestsys

sorry bud but if i see a kinect on your shelves i will laugh, not "pick it up"

Chief_Kuuni
Chief_Kuuni

I started getting my games from gamestop lately. Love preordering and getting the extras

hallgren
hallgren

Here in connecticut I use F.Y.E, I pay $25 for the year and get 10% off all games and peripherals in the store and 20% on your birthday week. Also anytime you reserve a game you get a $2 coupon to use on a product in the store priced 14.99 and up. Also they have been running a promotion all year long where if you reserve a game when you pick it up they give you a $10 credit that has to be used within the next 30 days. I have saved so much money this year, my move bundle costs $70. also if you keep your receipts when you trade in a game to show proof that you purchased it their you get an extra 15% more. I won't shop anywhere else!

alexLmx6
alexLmx6

@edant79 - I actually did at one point too.. I still get them confused all the time tho, stupid dyslexia.

jb9776
jb9776

gamestop is a ripoff especially since they bought out electronic boutique. I had been going there since they were funcoland and you used to get at least 43% of what they sold a game for,now you'd be lucky to get 25%. went in recently to trade in sonic kinect, madden 2010, wii sports resort, and move party, even with the extra $10 i got as a trade bonus i still only got $30. I no longer trade in games there i sell them online. i don't buy their mostly overpriced used games either, besides if you know where to look there are some great deals on games in certain places. I recently bought dragon age origins for $20 brand new at target and also got ninja gaiden sigma 2 for $13 new. But this is why you need competition in retail, when it was gamestop vs electronic boutique the deals were alot better.

noturfangirl
noturfangirl

Not enough kinects this holiday season? Who wants it?

ShadoweaverCode
ShadoweaverCode

@edant79 - LOL. At least you have the bravery to admit it publicly. That's some funny stuff dude.

HighRidin
HighRidin

@ president_bush I could totally see Bush saying that

edant79
edant79

I feel like a complete are-tard for admitting this ,...but for many uh year, I thought Gamespot.com was Gamestop's website. ...I know, right!!? I must be a complete jackass! If I didn't have any good games to play, I would have hung myself years ago.

rpg-god
rpg-god

@president_bush lol u are so right i got my edge card cause i was tired of them askin didn pay for it got da free one though lol dude (think like dam)

Flint247
Flint247

I recently got ripped off on my last game trade-in at Gamestop. Kind of disappointed, but what's done is done.

eldangeroso05
eldangeroso05

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

PokemonBoy92
PokemonBoy92

Gamestop maybe not be the cheapest but is by far my fav place to shop for games! And good for them for upping sales!

SoNin360
SoNin360

I don't understand why so many people go to GameStop. Just because it sells games and whatnot exclusively doesn't mean you are going to get the best deals there. You get hardcore ripped off if you sell or trade games there. Plus their prices aren't amazing. I understand going there for pre orders and midnight releases I guess, but still, I don't see the big deal.

president_bush
president_bush

"Would you like to reserve higher sales, or have any trade-ins today? Save ten percent of your used higher sales! Can I have your phone number and email and personal information, this will help you help us get higher sales! Please make a reservation, my higher sales depend on it -- I'll keep asking until you say yes, not to make you feel dumb or anything, but please reserve something! I need higher sales. Please sign up for our Edge card, too. Please give us your life.

unreal_master
unreal_master

@blackace You are true in what you say, but does my money not go to devs if i sell my games online?

EsteemSVX
EsteemSVX

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

Waldkrieger
Waldkrieger

And next week some Analyst will say sales are down. I do not even know why GS bothers reporting this rubbish. It is pointless.

ddelella
ddelella

The reason GameStop is still in business is because people don't know any better. If people knew how to sell their own used game safely through eBay or Amazon you would never go to a retail store for trade. You make less than half of what you can sell them for online. Gamestop is like a pawn shop, they buy dirt cheap so they can resell at actual used prices. People can get those actual prices if they knew what they were doing. Amazon is the easiest in my opinion with least problems. The only thing I ever go to Gamestop for is midnight releases for amazing games when they have the best deal. Halo: Reach was one but I cancelled COD because Amazon gave me $20 future credit and Gamestop gave me nothing. Gamestops days are seriously numbered as long as games increase the release cycles. Personally I am for the 2-3 year release cycle. It allows for DLC, lots of user feedback, and time for quality improvements to be added to the next version.

luffy11234
luffy11234

People wonder why I keep every game i get. Well I can go through the hassle of Ebay or do Gamestop. I Do NOT like gamespots way, i get ripped off blind. So I just keep my games. Maybe just help a bro and give a game away instead of making a few bucks. That will hurt them >:] lol

blackace
blackace

It's obvious that Gamespot makes a LOT of money selling used games. I saw a kid come into Gamestop with his Dad. He traded in Halo 3, Bioshock, Mortal Kombat -vs- DC, NFS: Shift and Madden 2010 for Fallout 3: New Vegas. lol!! He could have sold all those games on Ebay and made over $100 easily and then bought 2-3 games. Gamestop trades your games for cheap. Something like Madden 2010, they'll give you $9-12$ for it then sell it for $35-$40 used. None of that profit goes to developers or publishers. It all goes straight to Gamestop. It's like getting profit twice for the same game. That's why 46% of their profit are from used games.