GameStop seeing greater interest in Xbox One since price drop announcement

Plus, retailer says it has seen "no impact" on its business since Wal-Mart entered the preowned category

It's only been a nine days since Microsoft announced a price cut for the Xbox One, but retailer GameStop is already benefiting from the announcement. During a post-earnings financial call today, GameStop president Tony Bartel said the company is seeing "stronger demand" for the Xbox One since last week.

"I definitely think we're already seeing in our stores with our reservation program as well as dialogue with PowerUp Rewards [members that] there's a stronger demand as a result of the price drop," Bartel said. "The good news for us is... we'll sell a lot more units."

"And that means there will be more [Xbox One] units out there to put software on," Bartel went on to say. This is particularly noteworthy because GameStop's margins are better for software than they are for hardware.

The new $399 Xbox One, which doesn't come with Kinect, launches June 9. We'll have a better understanding of just how meaningful the price cut was for GameStop's fortunes later this year when GameStop reports earnings for its fiscal second quarter.

It's not only GameStop that's positive about the Xbox One price cut. Both Assassin's Creed publisher Ubisoft and Grand Theft Auto parent company Take-Two think the move is a good thing, as it should help more Xbox One units enter the market.

Also during the call, an analyst asked if GameStop's business has seen any kind of meaningful impact as a result of megaretailer Wal-Mart entering the used game space in March. CEO Paul Raines said competitors have emerged in the past and GameStop has always remained king of the secondhand market. This is no different for Wal-Mart, he said.

"We are in Texas so I have to say it's not our first rodeo," Raines said. "We have not seen any impact from our competitors entering the used space. I would encourage you to go do some trades at all of our competitors, because I think all of them are in the trade business. We have a deep knowledge of how execution looks at all of those competitors and we do not have any impact from them."

GameStop recorded revenue of $2 billion for the quarter ended May 3, and hauled in a profit of $68 million thanks in part to strong sales of the Xbox One and PlayStation 4.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com
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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
347 comments
timmzy27
timmzy27

I like how this article incorrectly says it is a "price drop" when it isn't. Yes the price is lower but the cost of the Xbox and controller themselves remain the same price, it is because the Kinect is gone that the "price drop" has occured not because MS thought "Hey, let's drop the Xbox One's price by £80 while still bundling it with a Kinect".

GrenadeLauncher
GrenadeLauncher

Hey Xbots: there was no DRM on the PS4. You could play games day one one on the console without the day one patch.

jserrano0909
jserrano0909

another thing I wanna point out, just because playstation is up for now doesnt mean they are going to be up the rest of the way, hardcore gamers dont care about the kinect, which is one of the reasons why ps4 is up. Im actually suprised for the price of the system and them forcing the kinect on everyone and only being sold in 13 countries  they are only down 2-3 million. Most of the type of gamers who would spend 400-500 are hardcore gamers. Now since xbox took the paywall down to use the apps, I wonder whats going to happen when the systems are both around 200-300 range and you see more of the casual gamers buy a video game console which there are more of....are they going to buy a ps4 or a xbox one with all the features of the kinect. There are more casual gamers than hardcore gamers, and now the xbox one is being sold in china...we will see whats going to happen then. Oh yea and by that time, I wonder how much more billion dollars sony as a whole is going to lose. The Power of the cloud is THE FUTURE of gaming, why? Its cheaper to use the cloud than to make new hardware. VR is also the future of gaming for hardcore gamers, while the kinect I still believe is the future of gaming for the casual gamers. And of course if sony starts making games for the VR....remember this is a copycat business ;-)

milleniaxender
milleniaxender

To the Sony fanboys here! This is how The Empire strikes back!!

cainetao11
cainetao11

I always applaud anyone for trying something different. It's risky. But it didn't hit, and they are making the right moves in response. I laugh at the put downs about 180s. So it would make better business sense to stay the course and not adjust fire to the market?

jserrano0909
jserrano0909

so many sony fanboys here who has playstation 4 filled with indies, probably bored of their ps4 and have nothing else to do. Honestly when I was on the market for either the xbox one or the ps4...well I can either get a ps4 filled with indies and maybe a few 3rd party games or a xbox one with a whole bunch of exclusives and some indie games...I looked at the exclusives Ryse: Son of Rome, Dead Rising 3, Titanfall, Forza 5, Plants vs zombies...and all had multiplayer which means a higher replay value....it came with the kinect which is different from the competition...oh yea and the apps I can use with voice command....it was a no brainer....the only reason I was even thinking about it was that ps4 had the free games at that time, the ps4 was also selling more and it had some survival horror games which I love to play cause I am a big fan of the silent hill series.... I might get a ps4 down the road....but now since they are getting the free games with gold....Im happy with my purchase...I hope they sell more xbox ones cause I def wanna see more games on the xbox one....this phil spencer guy seems like hes doing a good job

DARREN636
DARREN636

So now people with slightly less money can buy Xbox.

That's nice.

neowarrior793
neowarrior793

well its going to of happened because MS finally listened when people didn't agree with their wallets, now if they actually listened with their ears and not on financial statements they would of known that kinect was a fail back 6 months ago. this article is just proof of it 

shawnjohn
shawnjohn

You are clearly looking for too much in games. Look at them for what they are. I like shooters so i shoot. If you looking for some new high. Go outside and jump rope.

origkillmachine
origkillmachine

oh cool maybe I'll buy one.


Ah, who am I kidding, I've already got one. bwahahahahahaaaaa!

Pewbert
Pewbert

Yay more Gamestop news. It's not weird. Totally not as if they pay you to keep mentioning them in pathetic little articles.

shina777
shina777

well they have gone up from selling no units to selling 3 this week that's a 300% increase in interest right there.

de-astroturfer
de-astroturfer

shopper "Whats that over there ?"

gamestop "its called an xbox box"

shopper "oh"

gamestop "more interest in xbox ones prepare the press release"  

Lach0121
Lach0121

MS has compromised their system too much.


First they make it more of a multimedia device instead of focusing as much on gaming as they should.  Second the always connected is dropped, so Azure will not be helping games near as much as planned.  Lastly they drop kinect down to an add on so many games will not utilize it.


Honestly if MGSV comes to PC I won't even worry with a PS4 either. Too many games these days to keep up with them all.

Larouche911
Larouche911

I still don't care. M$ can suck it, and suck it hard.

spacecadet25
spacecadet25

It will be more interesting to hear the difference in sales.

minecraftgreek
minecraftgreek

No way, you lower the price, fix all the complaints and it's actually generating interest?  Who would have thought?

stickybun
stickybun

That's great news. Both consoles doing well is good for everybody and the industry as a whole.

darthburrito
darthburrito

@timmzy27  Let's not get anally technical with the "price drop" or "price reduction."

milleniaxender
milleniaxender

@GrenadeLauncher  LOL! You Sony fanboys are so STUPID!! Are you saying this. Because. you FEAR The Empire ( Microsoft ) Is going to strike back at Sony?! If yes. I can understand this STUPID a little bit! If not....YOU SHOULD FEAR Microsoft! Phil Spencer will crush you FOOLS!

BigDawgSteve420
BigDawgSteve420

@milleniaxender Yes by spitting on their fans stupid enough to pay $500 for a useless piece of hardware!!! Take that Sony(or would that be original Xboners)??

GrenadeLauncher
GrenadeLauncher

@milleniaxender By stripping out the thing you've been saying was "real next gen" for the last nine months and making you look like an ass?

A8ADD0N
A8ADD0N

@cainetao11 


Couldn't agree more. I don't understand how some people can go on hating something that a company is doing, then when said company reverses on said hated thing, the trash talker still talks crap about them "180ing". It's really mind boggling and makes no logical sense.

darthburrito
darthburrito

@jserrano0909  There's no need to get a PS4. I have one and it's a glorified BD player. As for the free games that came out at launch on the PS4, it's not much to talk about, that's why they were free at launch. Xbox will come out on top very soon.

lithiumink
lithiumink

@neowarrior793 I wouldn't say the Kinect was a fail, but I do agree that it should have been optional from the start. I use the kinect for the silly sports and dance games and love it. But I am the only one in the family that uses it. But the fact that MS is making changes is a step in the right direction. 

darthburrito
darthburrito

@de-astroturfer 


De-astroturfer: "What's that over there?"


GameStop: "You don't want that."


De-astroturfer: "Why?"


GameStop: "You can't tell? That's your mom and she has some wear to her."


De-astroturfer: "Moooom, again! Geez!"

b74kd3th
b74kd3th

@Lach0121 they didn't compromise anything, it's selling better then the 360 was is in less countries then the ps4 and now will snatch up all the tin foil hat wearers into buying one without kinect

darght
darght

@GrenadeLauncher Who cares? In other news, Xbox continues sucking harder than ever, with increased aggression thanks to the kinect having been unbundled from the system.

darthburrito
darthburrito

@milleniaxender @GrenadeLauncher  Is this guy still using DRM card? What a tool.

hina_ken
hina_ken

@A8ADD0N  It is because they are negative people in general, trolls, or just immature kids.


They will continue to complain just to keep up with their charade, or thinking it will save face, when it does anything but that!


Quite sad really.

Lach0121
Lach0121

@b74kd3th First lets get one thing straight right off the bat, sales do not equate to everything. Secondly, according to their initial plans, and promises they did infact compromise their system with the reasons I have stated in the original post.


Also ps4 is already making profit, better than the ps3.  Still don't mean I will get one, especially if MGSV makes it to PC.


"Tin foil" hat wearers... I get so tired of seeing the oblivious use of such terms by people to try and justify their blind obedience, or voluntary ostracizing of their selves.

Rotondi
Rotondi

@warriors30 @stickybun Good way to put it Warriors.  Everybody else in class (Microsoft and Sony) are pretty much the same, the "normal" kids, producing the same average, boring crap in their work, hardly distinguishable from one another.  Then there's Nintendo, the kid everyone makes fun of for being different, yet still in the face of all this doesn't care to be like the others and continues to still try to be creative and fun.  

Lach0121
Lach0121

@milleniaxender @Lach0121 I was referring the changes made to the system compared to how it was designed is almost a 360 degree turn.  Lowers the potential of the system.   Like the things I posted in my original post.   But in doing so, compromises were made.


This is sales compromising quality/potential. 

milleniaxender
milleniaxender

@Lach0121 Well sales keeps consoles being made and more new games will come. Sales count for 95% of everything!

jrcast84
jrcast84

@warriors30 @jrcast84 @Rotondi @stickybun As far as I know its free for PS+ members so you cant be too disappointed with a free game. Also I saw a preview where on person controls one leg and one arm while the other controls the other two, I could see a lot of funny moments with this game.

Rotondi
Rotondi

@warriors30 @Rotondi @stickybun The Indie scene is pretty awesome.  Many of those games you named are super fun and super creative.  I feel like the Indie scene is such an integral part of the gaming industry these days.  IF you skip it, you are missing out on some of the best stuff being produced today.  Hope to play Transistor soon. 

warriors30
warriors30

@jrcast84 @warriors30 @Rotondi @stickybun Oh man, I was really disappointed with Octodad. It's a very short game to begin with and I thought "the joke" was getting old really fast. Like...half way through the game. 

I don't know, it's definitely a charming game (with one of the best intro songs ever), and I hope you'll enjoy it, but just a friendly warning, don't get too excited.

warriors30
warriors30

@Rotondi @warriors30 @stickybun That might be. I'm not playing as much as i would like to, and mostly on PC and Xbox 360 (my next gen hasn't started yet). Here's some games I play:

Antichamber, Bastion,  Braid, Brothers - A Tale of Two Sons, Child of Light, Divekick, Don't Starve, Escape Goat 2, FEZ, FTL, Gunpoint, Jazzpunk, Kentucky Route Zero, Limbo, Lone Survivor, Luftrausers, Mercenary Kings, Octodad, Papers Please, Risk of Rain, Roque Legacy, Samurai Gunn, South Park, Spelunky, Starbound, The Banner Saga, The Binding of Isaac, The Walking Dead, The Wolf Among Us and now Transistor (love it)... that's it for PC atm, I'm more into indie games these days. Because like you, I was getting bored with the annual Hollywood game stuff.


jrcast84
jrcast84

@warriors30 Personally the best console was probably the N64, even though the GameCube had my favorite Mario game of all time. The N64 was a big leap from the SNES.

Rotondi
Rotondi

@warriors30 @Rotondi @stickybun You might worship gaming, but it doesn't seem like you play many games anymore because, no offense, your opinions are really out of touch.  It's scary that so many gamers out there actually think that 3D Mario's are the exact same and all the Zeldas are the exact same and even MArio Karts.  All you see is the title.   

warriors30
warriors30

@jrcast84 @warriors30 @Rotondi @stickybun Same here. Man, I want Nintendo to do good. I want a new Nintendo console, something like the N64 or Gamecube, you know, a real console (not some hybrid sh!t), just give me something...but the Wii U is not doing it for me. 

The 3DS has an AMAZING library as far as I know, tons of good games, but unfortunately I'm not into handhelds.

jrcast84
jrcast84

@warriors30 @jrcast84 @Rotondi @stickybun You're right they do release the same types of games for their consoles, which to most looks like the same exact thing being released for every console. Now those first party games are very fun in my opinion but they are not for everyone so I understand it is different for everyone. And I think we can all agree that the creativity is not there when it comes to making new games, and I hate to see it since I have been with Nintendo since NES.

warriors30
warriors30

@jrcast84 @warriors30 @Rotondi @stickybun Yeah, I know the Mario Karts don't come as frequently, I'm just saying MK 8 and MK 7 are *basically* the same games. I'm not hating on Nintendo or anything, but truth is, Nintendo doesn't seem that interesting or creative to me. Not anymore. 

And I don't even say they make bad games, not at all. Usually Nintendo's first party games are super well made and high quality stuff (MK8 looks gorgeous on the Wii U), but their library is still not interesting, in my opinion. 

Just my opinion, no hate to the Nintendo fans. 

jrcast84
jrcast84

@warriors30 @Rotondi @stickybun Nintendo only really releases one 3d Mario game, one Mario Kart per console. So almost once every five to seven years, it is not an annual install like COD.

warriors30
warriors30

@Rotondi @warriors30 @stickybun Whoa, wait a second...I respect your opinion and everything but when I read big words like "different" and "creative" I almost choked on my chicken wing. Almost didn't survive your comment but listen to this...

I agree with you, I don't find games like Assassin's Creed 14 or Call of Duty 26 very interesting anymore, in fact I stopped buying those games, but what makes Nintendo different? Don't they have franchises like Super Mario Brothers, Legend of Zelda, Mario Kart? There's a new one of these almost every year it seems, so to me as an unbiased spectator (trust me, I don't worship any of these companies, I worship gaming) it looks like Nintendo is doing the exact same thing...only lamer, because they (the Wii U) doesn't have most of the new third party games. What you have left are the newer, better looking versions of games you played 20 years ago.

Just my opinion, brother.