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GameStop posts $8.8 billion annual revenue

Specialty gaming retailer posts record earnings; 33 percent profit spike in year-end fiscal results; used games major cash source.

Anyone following the NPD Group's monthly retail-sales reports is well aware that the industry's sales have been hitting record levels despite the abundance of publisher layoffs and general economic woes. So it stands to reason that the largest specialty gaming retailer might have similarly record-setting revenues.

New records for used-game seller.

New records for used-game seller.

GameStop backed up that bit of conventional wisdom today, releasing its sales figures for the full fiscal year 2008. For the 12 months ended January 31, 2009, GameStop racked up a company best of $8.8 billion in sales, up more than 24 percent from the year before. Profits were also up, given that the retailer reported more than $398 million in net earnings, an increase of more than 38 percent year-over-year. It is the eighth straight year that GameStop has posted sales and earnings growth.

To single out the company's fourth quarter (November through January), the crucial holiday season's revenues totaled $3.5 billion, nearly 22 percent higher than the previous year. Again, net earnings were up, with GameStop bringing in $232.3 million more than it put out for the quarter, a year-over-year surge of more than 22 percent.

Although GameStop's revenues were bolstered by the addition of more than 1,000 stores through new locations and the acquisition of French retailer Micromania, comparable store sales were also up significantly for the retailer. For the full-year, those stores posted 12 percent sales growth, with a jump of nearly 10 percent over the holidays.

GameStop expects 2009 to be another record-setting year, although the growth is projected to slow down somewhat. For the full year, the retailer is projecting revenue growth of 10-12 percent, with comparable store sales up 4-6 percent. That more than keeps pace with its expectations for new game sales in the US, which GameStop expects to increase 5-10 percent over the course of 2009.

Regardless of new game sales, it's the used-game business that produces the most money for GameStop. Though used games represented just 23 percent of the retailer's sales in 2008, they accounted for nearly 43 percent of its gross profit.

75 Comments

  • Amnesiac23 Site moderator

    Posted Mar 31, 2009 2:00 am GMT

    @nate1222: The only job I've ever truly hated because of the way the entire company was ran was a security job I had recently. No one in this business, including managers, had even the most basic idea of how to run a business. I was never trained, talked down to human trash, told I couldn't go to the bathroom (except for once during a 9 hour graveyard shift), etc. That's the only job I ever felt like I was going to lose who I was just to keep it. Jobs like that are not worth the money (and in that case the money was $8.50)

  • nate1222

    Posted Mar 31, 2009 1:52 am GMT

    @Amnesiac23

    I'm there. I'm 33 years old, and prior to joining the Army (current economy reasons), worked retail as a shift manager. Some places I worked weren't bad. Others were a bad joke. Mostly resturaunt, as I had plenty of cooking experience. I'd also done frmaing (carpentry) and security. And EVERY vocation has businesses that are run by jerks. Not all -in said vocation- but enough to piss you off and make you quit. Hell, like I stated in my previous post, the Army is an okay job. But the lifestyle that comes attatched to it flat out sux! And I try to live 'the lifestyle' as little as possible. I make every effort to hold on to who I am as a person.

  • Amnesiac23 Site moderator

    Posted Mar 30, 2009 11:14 pm GMT

    @Darkside7972 and Fortis: There are bad stores ANYwhere in retail. You have bad managers, bad DAs, bad RAs, and bad part timers. The first store I worked at, I had to file a harassment complaint against my manager. No one at that store, including the managers, knew how to do their job and they did not value customers. They got their subs and reserves and kept up their UPT by pressuring people into buying what they were selling. On the other hand, the second store I worked at was like heaven. I never had any problems with my fellow employees, everyone did their job, and the customers (for the most part) were happy. I'm not going to defend any company because companies are made of people, and just like anywhere else there are good and bad people.

  • Merl57

    Posted Mar 30, 2009 9:58 pm GMT

    wow

  • Darkside7972

    Posted Mar 30, 2009 5:39 pm GMT

    @ Fortis

    But that's just it: the happenings at my store are not isolated incidents. More so, I'd say that working at a Gamestop store where the things I discussed DON'T happen is the rare case. Proof of this can be found not only in posts like mine, where people call Gamestop out on their terrible business and employer practices, but also in the fact that such forum debates as the one we're having right now even exist. If Gamestop really was so great, no one would be complaining as the whole thing wouldn't even be an issue.

    While I agree that many people are ignorant about how retail operates, that does not excuse Gamestop's ways as a business. As for my views on the company as an employer, I stand by what I said. It may not be happening at your store or even near you, but it's definitely happening in my entire district, and judging by what others have said on the forums, I'm sure we're not the only one.

  • pixiedust35147

    Posted Mar 30, 2009 12:45 am GMT

    everytime i see a gamestop post i check the forum just to see the fights. its awesome.

  • imprezawrx500

    Posted Mar 29, 2009 11:33 pm GMT

    That is only true for the few game with activation limits, most game that only use disk checks it is no different from selling used console games and this is more of gamestop ripping off the game companies (and consumers with selling the games for close to new value and over 4x what they give you in trade value) by selling the same game over and over. Game companies consider the used game market as much of a problem as piracy. there's a huge difference between the sales of used console and used PC games........GameStop (for obvious reasons) doesn't sell used PC games

  • FortisEM

    Posted Mar 29, 2009 3:30 pm GMT

    @Darkside

    I perfectly understand everything you said and have to say that whichever GS you've worked at is the one that needs to be "burned to the ground". No associates at my store "bumrush" customers about anything "seconds" after they've walked into the store. Funny how we're still able to sell out on Subs and rack up GPGs without having to try such tactics. I guess it's because we don't hire highschoolers and kids that have no job experience in the first place. That includes all the area stores by me, not just mine, so it's not entirely a one-handed account. No, I won't defend it to death because I don't recognize it to be that spectacular of a job anyway, but I'll have my say when it comes to people are ignorant about retail. The only difference between GameStop and, say, Macy's in terms of asset inflation is that people KNOW they're getting burned by GS. For the most part the general public doesn't realize that the $50 collar shirt they just bought at Macy's cost $3.50 to make. So to make myself clear, I'm not defending GS "to death", just making a statement to people who pass it by at the mall just to go next door to a store that is hardly unlike the one they love to hate, yet continue to shop and/or work at. -Evan

  • Xaviersx

    Posted Mar 28, 2009 6:28 pm GMT

    Used gaming market is something publishers will have to deal with, because if game players aren't trading them in at GameStop, their selling them on eBay or like (so not just the store is affecting the market), but I still feel that the publishers shouldn't hinder the market with 1 owner schemes or overpriced DLC lockin, and believe that if someone paid retail the 1st time, that their sale or trade-in is the purchaser's/sellers concern, not the publishers', just like the used music market or any used market.

    As for Gamestop, to some it is "Circuit City", to other's "BestBuy". It's either wish it dies or keep on keeping on, but that's just personal opinion and we've got a right to whatever opinion we foster, that's just life. We can't all feel the same about it, except that majority rules whether it continues to see support barring outside forces like publishers moving content to mainly online and dlc.

    Frankly, I'm an eBayer and haven't been in a GameStop for over a year, even though there are 2 very close to where I live.

  • Darkside7972

    Posted Mar 28, 2009 12:31 pm GMT

    @ FortisEM:

    You're entitled to your opinion. However, judging by the maturity level of your post, you are too young to understand, so everything I said most likely went over your head. And frankly, as an experienced employee I have more of a right to talk about the business than you or anyone who hasn't worked there. You sound like one of those part-time teens who would defend the company to the death simply because it's their first job and management has duped you into believing the company as both an employer and a business is so much greater than it actually is. Wait until you've been there long enough and after a promotion or two, you'll get to see how the corporate machine operates from a slightly closer view.

    It's kind of scary... You remind me of me five years ago.

  • baystatethrashr

    Posted Mar 28, 2009 7:24 am GMT

    DarthEthong467

    there's a huge difference between the sales of used console and used PC games........GameStop (for obvious reasons) doesn't sell used PC games

  • Toddbu

    Posted Mar 27, 2009 4:15 pm GMT

    Gamestop isnt bad if you are trading your game for credit. But for cash its a rip off.My advice is if you dont like gamestop dont go in the f-ckin place.

  • nate1222

    Posted Mar 27, 2009 3:12 pm GMT

    Not a surprise. Hell, I've bought plenty of used goodies from GameStop. The only thing keeping 'older' games profitable for console makers and publishers is downloadable titles via Virtual Console, PSN, XBLA, etc... And that's because they're cheap enough to compete with used games. @hunter8man

    Ditto. I'm in Korea in the Army, right now. I lived in Atlanta prior to joining. And I miss Play N' Trade. They carried so much cool Old School stuff. The Virtual Console on my Wii gets me my Old school fix. And the local pawn shops carry lots of PS2 goodies. There's a lot of 'boot-leg' games floating around Korea. But I don't risk it; when I go back stateside, it won't play on U.S. consoles. Thus, I stick by my Wii, PS2 and DS. And, yes, as a lifetysle the army sux. As a job? Not so bad.

  • ChoadS

    Posted Mar 27, 2009 2:20 pm GMT

    The “used games industry” is bad for the gaming industry as a whole. We are going to see the quality of the games suffer because of less competition.

  • hunter8man

    Posted Mar 27, 2009 2:03 pm GMT

    Gamestop really makes me wish that I had a Play N' Trade near me. I went into one of their stores, and it actually feels like a store that caters to gamers with better buyback rates. That, and their employees seem to know something about games unlike the Gamestops that are near me.



    If people would just do a little research, they would be able to find much better deals than what GS offers and realize that they aren't the only option for buying used games or selling them back.

  • cireking213

    Posted Mar 27, 2009 2:03 pm GMT

    @ DarthEthong467

    I never wrote "no one buys PC games?". Not sure where you pulled that from. I buy PC games and I don't even own a console. I may still get an Xbox 360, but not a PS3. I don't care for Sony and thier guerrilla DRM: Securom, so I refuse to buy any of their product.

    But to the issue, I wrote the GameStop near me is more concerned with selling used console games than they are selling PC games. They put their PC games on a tiny rack at the rear of the store.

    3/4 of their wall space is taken up by used console games. The company has become a game industry parasite.

  • DoeJohn531

    Posted Mar 27, 2009 2:01 pm GMT

    @dockholidaiy

    Why should gamestop pay their 15 year old part time employees more than minimum wage? Because they do such a great job with customer service???

  • Sins-of-Mosin

    Posted Mar 27, 2009 1:59 pm GMT

    I wonder how those devs/pubs think about those numbers. You can be sure there are some who are cussing their name as we speak.

    Thou, with such profits, I wonder if they'll ever make a store thats larger then a shoebox.

  • sieg6529

    Posted Mar 27, 2009 1:25 pm GMT

    GME is about the only thing keeping my stock portfolio out of the red. Grow baby grow.

  • strayfies

    Posted Mar 27, 2009 1:25 pm GMT

    Power to the paycheck.

  • Liferow

    Posted Mar 27, 2009 12:46 pm GMT

    Went to Gamestop once, saw a 2 year old game being sold for about 12 bucks less than the price of a brand new game. Laughed and walked out.

  • dockholidaiy

    Posted Mar 27, 2009 12:37 pm GMT

    So why do they pay there employees Minimum Wage. Gamestop employees need a union!!!!!!! Greed is what is destroying this country. Why dont companies want to take care of the employees that matter the most.

    I hope all the heads of gamestop go to hell.

  • da1writer

    Posted Mar 27, 2009 12:37 pm GMT

    I will soon not being going to GameStop anymore because they hardly give you the worth of trade ins and used games are laughably overpriced. I'm going to subscribe to Gamefly next month and save my money for better things... like exclusive first- party titles at Game Crazy, they give military discounts where I live and good game trad in prices !

  • Slim02

    Posted Mar 27, 2009 12:25 pm GMT

    @Rayze78

    I go to Gamestop to laugh at their used prices on games.. If I get used games it is not from Gamestop.. Also I do not sell my games.. I only buy games I know I will keep as long as the console keeps working.. If I buy used games it is from Play & Trade, Mom & Pop stores or ebay.. They have better prices and are not a joke like gamestop is.. New games I go to Target, Bestbuy or Fry's... I will not spend one cent at joke of Gamestop...

  • smbius

    Posted Mar 27, 2009 12:19 pm GMT

    My friends and I used to work at EggHead and EBGames before they were acquired. Both companies had better policies, older games to choose from, and a balanced selection of all platforms and was sad to see them go. Gamestop's used game business is what gets them so much money. Many people would buy new games and after they're done finishing them, they "trade" them (3 or 4 games) in for the newer game. I remember seeing someone about to sell back Marvel Vs. Capcom 2 to gamestop. They were offering 15-20 bucks depending on the condition. I told the kid it's worth $80 on ebay and showed a typical auction on my blackberry. He then left the store feeling disgusted.

  • FlashCharge

    Posted Mar 27, 2009 12:12 pm GMT

    Buy used games below cost and sell them for a profit. It is no wonder why gamestop received a 43% margin profit for their used games sales.

  • RLJSlick

    Posted Mar 27, 2009 11:23 am GMT

    OMG Billion??!??!? That is a lot of lettuce!

  • BtmnHatesRbn

    Posted Mar 27, 2009 10:38 am GMT

    $8.8 billion, and $0.50 to all of the developers and publishers of those used games.

  • Rayze78

    Posted Mar 27, 2009 10:31 am GMT

    Another thing, if you dont like their prices on used games...dont buy them then! While I like Gamestop, I buy almost all used games from Amazon or eBay.

    If you dont like their trade in prices, then dont trade them in there! Hello people. Sell them on eBay or Amazon. But obviously people are trading/buying used games enough. If they werent, they would increase trade in values and decrease the prices. Why would they knock $10 off a game when they dont need to? Its what capitalism is all about.

    The people who dont want to put in the effort of listing or buying a game on eBay are the same people trading and buying used ones at Gamestop; and then go on to complain about it. Its really funny when you think about it.

  • Rayze78

    Posted Mar 27, 2009 10:19 am GMT

    Wow, so many gamestop haters. I've been going there for a few years now, have bought and preordered many games with no problems. Customer service is fine at the 2 stores in my area.

    I think its good news whether you hate them or not. Video games are selling, thats good news for us gamers!

  • Squeets

    Posted Mar 27, 2009 10:12 am GMT

    Damnit.
    They are becoming a monopoly... I used to have 3 locally operated game sellers around me... 2 Gamecrazy's... then one year (in one year alone)... they built 10 gamestops all within 5 miles of each other... and since then... all of those other stores have closed... the only option I have for games anymore is gamestop...

  • BigDaddy973

    Posted Mar 27, 2009 10:11 am GMT

    They are a giant.... I want to start a rival! Who is with me!

  • feryl06

    Posted Mar 27, 2009 9:50 am GMT

    this is why I love those "I hate GS" , "Never going back to GS", or "People should boycott GS" threads. Each year those same people get pawned by GS with their sales numbers.

  • necronaux

    Posted Mar 27, 2009 9:22 am GMT

    You're welcome.

  • Darkeus

    Posted Mar 27, 2009 9:07 am GMT

    It all has to do with selection. I am quite aware of the dirty scum Gamestop is. I usually do not sell my games back and I try not to buy used games from them. I prefer to buy my games from Gamefly. If I have something out that I want to own, I buy it a a good price. Gamefly is decent and the service is pretty good. Back to selection. See, I wanted to get a Nintendo DS and three games. I went to Wal-Mart (just as evil as Gamestop mind you) and no Ds and only one of the three games I want. Target is the same and KMart.. Lol.. Now I had to go to all three Gamestops to find what I was looking for but I could not find the World Ends With You or the new Castlevania without going there. Kind of hard to shop somewhere else when Only one place has the more niche games I am looking for. Other places need more selection.

  • Hellbishop

    Posted Mar 27, 2009 9:00 am GMT

    Love GameStop. They always have the games i want aswell as strategy guides for new releases along with computer magazines. I used to have to take a one hour ride downtown to the excellent J&R Computer World before GameStop started popping up in my neighborhood. Now i have three of em all in walking distance of where i live and all financially well off.

    GameStop always has the latest Pc releases first in my area. I remember when OBLIVION first came out no one in the city had the Pc version just the Xbox version but when i went to GameStop there it was. Since then i do all my game shopping there

    I dont bother with reserving games so maybe thats why i dont have the problems alot of people complain about when it comes to that.

  • bat725

    Posted Mar 27, 2009 8:17 am GMT

    Yea, Gamespot can be a frustrating experience. My last experience went like this: I go to pick up my reserved RE5. Cashier (with friendly smile) asks if I want to buy stategy guide, I say no. He then says, "Come on, you get 10% off with the game!". I say no thanks. He says, "Are you sure? You can't find everything without the guide." I say "Yes, I'm sure". Cashier says "All right..." with this tone like "its your loss."

    Cashier then tries to get me to pre-order new titles, he listed off about 5 titles, and the more I said no, the more he kept asking. Finally, he asks if I want to purchase a warranty for the game I bought. I say, "no thanks", again with the "are you sure?"

    After realizing I wasn't going to buy anything else, he hands me my game with a look of frustration, and all of a sudden, he isn't so friendly anymore. This happens everytime I go there. They even tried to sell me WoW buttons, for Pete's sake! And then they pop attitude when you kindly tell them "No, thank you."

  • DarthEthong467

    Posted Mar 27, 2009 7:49 am GMT

    @cireking213

    What do you mean no one buys PC games? I don't see why there would be much more of a difference between the sale of used console and used PC games.

    And WOW isn't that great. A lot of the people I know are getting sick of it. Its the same old thing every time.

  • TripSe7en

    Posted Mar 27, 2009 7:45 am GMT

    The first wave of systems that adapts digital distribution as its focal method of distribution will destroy brick and mortar retailers like gamestop. This trend is already forming shape with OnLive and Sony and MS releasing more and more content on their own marketplaces.

  • baystatethrashr

    Posted Mar 27, 2009 7:30 am GMT

    cireking213

    its cuz no one buys PC games. there's WoW and thats it. i hate to say it but its true. sorry =(

  • baystatethrashr

    Posted Mar 27, 2009 7:28 am GMT

    Darkside7972

    while i agree with most of what you said the mark up for used games is resonable in most cases my store has over 100 copies of madden 2005 just for ps2. some of which were bought back for around $20-30 and we now sell for a $1 so in most cases they have to make up for the garbage that they buy from people by buying for a low price and selling them for triple that. its simple math in most cases.

    and the reason that you people are getting such a low price for your trade ins is because you are too lazy to sell it your self on ebay when you cut out the middle man (gamestop in this case) then your gonna make more money. duh.

    and btw 5 bucks is 5 bucks. in most cases the game isnt scratched and saving any money now a days is saving a lot especially in this economy.

  • cireking213

    Posted Mar 27, 2009 6:55 am GMT

    I really hate what Gamestop is doing to PC games. They have so much wall space dedicated to used games and they put PC games on a tiny shelf with the spines displayed. Obviously they don't need my business so I'm never going back. I think I would love to see OnLive bury them.

  • Makhdoom82

    Posted Mar 27, 2009 6:31 am GMT

    Milk the situation as much as you can Gamestop. In these times of depression

  • RaZ0Rs3dge

    Posted Mar 27, 2009 6:23 am GMT

    Anyone who wants to hear the BS of gamestop can listen to these:

    http://www.youtube.com/watch?v=x5_DgLCu6fk&feature=related
    http://www.youtube.com/watch?v=7-QmOowEkWY&feature=related
    http://www.youtube.com/watch?v=IW82QZNQi5s&feature=related
    http://www.youtube.com/watch?v=MTUtJ2sUZiw&feature=related

    As a long time customer of EB games, they were cool. Before I was 18 they let me get M rated games. The EB games card was actually worth something. Most of all used games were actually in good condition. When they were bought by GameS*** everything changed. Now that edge card is a piece of garbage. Not to mention the employees have to ask if I want a gameinformer subscr., or a preorder, or if I want some worthless warranty fee when I buy a game. Now they carry any used game no matter what, even if the disc looks like it was rubbed on concrete. The final nail in the coffin with gamestop for me, they tried to sell me a USED reshrink wrapped MGS4 and said it was new.

  • Koi-Neon-X

    Posted Mar 27, 2009 6:19 am GMT

    @Darkside7972 I agree and I too have worked for Gamestop (started when it was EB games) and the blitz of marketing, the CONSTANT loop of whatever they decide to put on the TV (drove me CRAZY!) and the undeniable smell of nerd sweat (every Gamestop I've been too STINKS!) it's just too much.

    Luckily, we are armed with the knowledge of their tactics and we know better. Not just for us EX employees but, for the gamers in the know. I'm not going to put a pre-order down on a crap game just because you NEED or WANT me too!! they treat everyone like they are mindless sheep and will buy whatever they want us to buy if they push hard enough.

    Plus, the buying USED games is killing the video game industry. I often wonder if certain developer/studios/etc would be going out of business if they received any of the proceeds from someone buying THEIR used game. Hmm....

    Like you said they do have the best selection (I love Best Buy but, they need to step it up on the selection of PS3 games!) and I am sorry to say it is convinient to just pop in and get the newest game. Sadly, they will still receive my business but, I won't touch their used games nor will they draw me in with the blitz of advertising or would-you-like-to-preorder crap. Buying Used Games=Killing The Video Game Industry!!

  • TruthOpinionSpk

    Posted Mar 27, 2009 6:15 am GMT

    Gamestops are starting to smell like Fye and Spencers. I feel like I am breathing in dead hooker and A-18 movies when I go in one. Does that make sense?

  • Guannoboy

    Posted Mar 27, 2009 6:07 am GMT

    Someone has to do something with gamestop and used games. I'm glad Amazon.com is starting to implement it, because I would much rather give my money to amazon than gamestop. I am going to be honest, and admit that I do sell a few games back to gamestop. But, I really don't have much choice. Ebay.com is too much of a pain for me, and craigslist can just be a lil shady. So, if I don't like a game, I go to the most convinient place, even though I'll get $10 less.

    What really gets on my nerves, is that the developers are losing out. Something must be done. It is not right for gamestop to reap all the profits while the guys responsible for being creative are losing out. As much as possible, I always try to buy newly sealed games. But, more and more, I find gamestop only having used games in stock. I think this really hurts the industry.

  • kybigdaddy

    Posted Mar 27, 2009 6:06 am GMT

    It's good to see that someone is doing well in this economy.

  • raahsnavj

    Posted Mar 27, 2009 6:02 am GMT

    @SoNin360 - instant gratification is 'better' than waiting for something to ship from ebay. That and when you buy it used you can see the condition right then and there, backed up by a warranty, Ebay... depends on the seller.

    As for GS 'resells' I do hate the fact that all used games instantly become $5 less than current retail. They have 30 copies of CoD4 in there all for $55 because the retail is still $60; you'd think supply would fit into the price somehow... And the poor people that traded it in for $5 or so should have been ashamed of themselves.

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