GameStop reports record sales

Acquisition of Electronics Boutique leads game retailer to break $3 billion mark in sales for FY2005.

Specialty retailer GameStop issued its year-end results for fiscal year 2005 today, and the numbers were far and away the highest they've ever been for the chain, primarily due to its acquisition of chief rival Electronics Boutique last year.

The company beat its earnings expectations, netting more than $100 million in profit off just over $3 billion in sales for the year ended January 28, 2006. For the year before the EB merger, the company made almost $61 million off $1.8 billion in sales.

For the holiday quarter alone, GameStop raked in nearly $1.7 billion, considerably more than twice the $708 million it took in for the holiday season from November 2004 to January 2005. That quarter saw the release of Halo 2, Grand Theft Auto: San Andreas, and Metal Gear Solid 3, as well as the launch of the Nintendo DS.

The company's results beat out its own expectations as well as those of analysts and had a clear impact on GameStop's stock price. Its shares traded hands at almost four times the daily average today, driving the price up $3.60 (almost 8 percent) to $45.

Having weathered a 2005 that was difficult for the industry as a whole and emerged above expectations, GameStop is setting its goals for 2006 even higher. While most analysts are predicting a decline in game sales for 2006, the retailer projects a boost in sales of 14 percent to 17 percent for the year, highlighted by the releases of the Revolution and the PlayStation 3.

35 Comments

  • i_love_my_ds

    Posted Mar 25, 2006 8:14 pm PT

    if it was'nt for EB Games' acquisition Gamestop would of had a crappy year. if that isnt obvious then i dont know what is. lets just see if they do as good when digital distribution kicks in.

  • NikkiSixx

    Posted Mar 22, 2006 2:48 pm PT

    GameStop pretty much hates the consumer... Look at there new deal with GPGs, or whatever they're called. For an extra $2-$3 you can get a guarantee on a game you buy. But if you read the brochure telling you what the protection is, it doesn't really cover anything. Unless your game has NO scratches, you can't bring it back. I got duped and lied to until I read the fine print. That place is condescending. I hate you GameStop

  • SavoyPrime

    Posted Mar 22, 2006 2:04 pm PT

    Not surprising really, since GameStop did merge with EB.

  • Merl57

    Posted Mar 22, 2006 1:08 pm PT

    Crapy crap crap. Ea games is owned by Gamestop! I just found out about it now I don't know how long ago that happened but that is troubling news for me. EB games seemed to be the litte guy with the best prices. I preorder stuff from them all the time and the call me when it comes out. You don't make much by selling your old crap to them but I like how they market down prices and sell pre played. I need to do some research at gamestop but I hope this doesn't work like the EA/Dice takeover.

  • Sandman100

    Posted Mar 22, 2006 12:56 pm PT

    I like Gamestop that very good for them.

  • daftfan

    Posted Mar 22, 2006 12:52 pm PT

    Thatīs an example of how importants are (us) the videogamers for the economy of so much company of software and/or hardware. There will another record sale in this year because of XBOX 360 hardware and games and in months later the Nintendo Revolution (for the fans of Nintendo), and in November the PS3 with the coming of thanksgivin' day, and the SUPER CRAZY SALES, but with the HORRIBLE PEOPLE THAT ALMOST KILL U FOR A GAME OR A TOY, Damn it!.

  • jonnyjd

    Posted Mar 22, 2006 11:40 am PT

    That is some $$$.

  • krabbypatties

    Posted Mar 22, 2006 10:18 am PT

    Aw how nice for them.

  • Seraphim_24

    Posted Mar 22, 2006 10:18 am PT

    Gamestop is a fun store, and I'm glad they're doing well. However, with so many systems on the market they aught to start building bigger stores for the additional shelf space they're going to need... 3 consoles, possibly 4 handhelds (With Microsoft possibly getting in on the handheld market, as well as the elusive Game Boy Evolution...)

  • discipleofsin

    Posted Mar 22, 2006 9:09 am PT

    These types of companies essentially only make money on used product and accessories. They actually lose money on hardware that they sell (when shipping costs etc. are added on) that is why they "bundle" the systems ... it's the only way for them to make a profit on selling a 360.

  • maltesefalcon42

    Posted Mar 22, 2006 9:07 am PT

    Someone mentioned that game prices are higher today than ever. Bull. When Final Fantasy III came out for the SNES it cost *80 dollars*. Every generation game prices shoot up 10 bucks or so but they come right back down. And if you're patient enough you can wait for the Player'sChoice/Greatest Hits prices on the best games. Resident Evil 4 for $20 bucks? Sign me up. I'd even buy it at GameStop.

  • ted_havoc

    Posted Mar 22, 2006 9:05 am PT

    Big surprise... When you buy back games for $12 and sell them as used for $45 what would you expect. I've had nothing but bad experiences with Gamestop and fear the day when EBgames becomes fully assimilated.

    A little competition goes a long way.

  • NeoJedi

    Posted Mar 22, 2006 7:18 am PT

    That merger was a great move. It's good to see a game-related company do well.

  • Kwiksilva

    Posted Mar 22, 2006 6:19 am PT

    Dang they are really bringin in the money

  • chrisdojo

    Posted Mar 22, 2006 5:49 am PT

    umm.....duh? they acquired EB and forced thousands of people to buy their 360's with crap bundled........ of course they have record sales.

  • Autolycus

    Posted Mar 22, 2006 5:32 am PT

    Being a slave there for MANY years I can tell you that not ONE OUNCE of ANY profit goes to their employees. Store managers make about 35k(WAY TO LOW, it averages to 5 dollars an hour with all the hours worked). I have been there 3+ years and have had 1(yes one) raise. I make a whole 7.00 /hr and thats higher then anyone else in our store because our turn over rate is soooo high.


    The store managers do a great job, its the executive, district managers, regional managers(all 3 listed get free cars when joining the "team") that screw things up. I see it turning the way of Best Buy(which is one of the most well known companies, when it comes to BAD CUSTOMER SERVICE) as far as only caring about money.

    You have to remember that the companies that make these games, don't see a penny of USED SALES. Thats why you should just buy it new, that way great cames keep being made and the freaking GTA rip offs can stop being made.

    There are so many thing wrong with this company, you are better off buying new and from somewhere else.

  • KiLLer_ba

    Posted Mar 22, 2006 2:01 am PT

    Good news for them

  • wokisan

    Posted Mar 21, 2006 8:50 pm PT

    "Days and days and days?". Go right ahead. No video game console is worth that to me.

  • mickel_darmawan

    Posted Mar 21, 2006 8:34 pm PT

    YAP, selling that PS3 will heat up their shop, a lot of people will stand in front of their shop days and days and days, just want to buy that system.

  • wokisan

    Posted Mar 21, 2006 8:17 pm PT

    EBGames...the company that saved Gamestop.

  • yanks26wsw

    Posted Mar 21, 2006 6:31 pm PT

    I like them better anyway

  • BYS2

    Posted Mar 21, 2006 4:38 pm PT

    hmmm.. interesting

  • syxpack

    Posted Mar 21, 2006 4:37 pm PT

    who cares about the sales, that's only 3% profit. Must be some hefty costs there in the executive branch. I'll have to do some research on retail, but without manufacturing + the use of the internet sales. I would think Profit should be at least 10%

  • GyRo567

    Posted Mar 21, 2006 4:28 pm PT

    I've heard their used sales are their largest source of income, and I don't see those rising very much. At least I've always seen a steady stream of used games locally.

  • ultimate_zero

    Posted Mar 21, 2006 4:21 pm PT

    Thats great news for them. PS3 CountDown!!!!

  • Kayrod29

    Posted Mar 21, 2006 4:20 pm PT

    I'm actually surprised because with games prices going higher then ever, people will stop buying games. But then again, you got your hardcore "I'll pay anything for this game" gamer.

  • benihya

    Posted Mar 21, 2006 4:19 pm PT

    well yeah, they forced people to buy those Xbox 360 bundles for over $1000 .

  • frankeyser

    Posted Mar 21, 2006 4:10 pm PT

    welll i fyou take the two biggest software slales companies.. and put them together.... what do you expect?

  • sjrp80

    Posted Mar 21, 2006 4:06 pm PT

    so wut is this suppost to mean to us gamers

  • fore_runner

    Posted Mar 21, 2006 4:06 pm PT

    They will never sell a game to me, even though working there isn't so bad. Best Buy gives much better deals through the employee discount (my uncle).

  • elessartelrunya

    Posted Mar 21, 2006 3:53 pm PT

    Wow...3 billion in sales...

  • runstalker

    Posted Mar 21, 2006 3:37 pm PT

    GameStop + EB [GameStop absorbing EB] = record GameStop sales. What a shocking revelation that this could happen.

  • Donkeljohn Site moderator

    Posted Mar 21, 2006 3:35 pm PT

    Good for GameStop. Even though EBGames is the same thing now, I will go there in lieu of darkening the GameStop door. . . unless, of course, Costco has something tempting.

  • rehino

    Posted Mar 21, 2006 3:34 pm PT

    good for them

  • blackIceJoe

    Posted Mar 21, 2006 3:32 pm PT

    Thats sweet I wonder how much this year they will make when the other systems are out.

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