Gamestop Expects 10-12% Revenue Increase

[Virtuoso]

Even in these tough economic times, some people are still able to make a bundle of money.

Specialty retailer GameStop expects total sales to grow by 10-12 percent to $9.68-9.85 billion in fiscal 2009 (ending January 30, 2010), despite the current global recession, according to an official statement to the stock market. [T]he predicted increase is significantly less than the growth the company saw with its fiscal 2008 full-year sales, up 24 percent to $8.8 billion, compared to 2007's $7.1 billion.
From Gamasutra (http://www.gamasutra.com/php-bin/news_index.php?story=22384)

[BabyJesus]

Something I just don't understand. They are such a shitty retailer I don't know why anyone goes there, ever.

They treat customers and employees equally poorly so I guess I don't know why anyone works there either. :)

[Virtuoso]

Something I just don't understand. They are such a shitty retailer I don't know why anyone goes there, ever.

They treat customers and employees equally poorly so I guess I don't know why anyone works there either. :)

Low expectations?

[vherub]

gamestop is like a pawn shop, and when the economic climate gets harsher, pawn shops see an uptick in people trying to sell them stuff.
In addition, gamestop has a lifetap into a core buying demo: gamers. May who still have disposable incomes. And since used games are cheaper than new games, they are going to pull further business. It's not shocking to see them do well, and I would expect them to continue doing well for however long the economy is bad. Unless digital distribution sees a huge wave of popularity.

[lockwoodx]

I worked a high profile ebgames back in the day. All the detroit pistons shopped there, along with some detroit lions and other random clebs. They would come in and buy 7 xboxes at a time. 1 for each family member, and 1 to keep in each house to give you a picture.

We'd constantly have the highest selling store in the state and treat our customers like gold. The problem is, NOBODY wanted anything pre-owned because they were all rich and corperate would hound us day and night with termination threats, DM visits, the works because of it.

The manager, assistant, myself and 2 other employees all walked within the same 2 weeks because of how that company use to mentally abuse it's employees.

[Sammael]

Lockwoodx, your store, even though it was driving a ton of sales was probably costing GS money. If you looked that their business plan you would probably see that hardware and new game sales are very low margin, where anything used is closer to 50% profit.
I'm surprised they didn't try moving shipments of new merchandise away from your store in an attempt to drive used merchandise.

[TheBot]

I used to work there and used to buy there often. I don't now. The only time I go in is to reserve a game that I know I can get at 10am when they open, or at 12am if they do a midnight release. I don't even like going in there. If I can't get a game or someone else will have it $10 cheaper in a week then screw them. I hate their ripoff prices and their trade-in system is a joke. We'll give you $5 for your copy of Fallout 3 and then go ahead and put it out at $40. I love how they send me emails about their weekend deals...But those are the same prices you always have the games at...Yes, but their deals! Riiight. They almost never lower their prices unless everyone else does it.

[LilAbner]

To add to this, their execs are getting paid big bonuses for their performance: http://www.gametradejournal.com/2009/02/gamestop-shares-soar-following-improved.html

Last paragraph.

Hey, at least it's not like one of these companies you hear about where the CEO is making a mad bonus after the company lost hundreds of millions of dollars.

[balamoor]

I can tell you first hand that their projections are BS. They are shutting EB stores right and left in towns where there are Both EB and GS Store fronts 90% of senior employees (Employees over 27) are getting canned and being replaced by Minimum wage teenagers. Basically guys they are putting lipstick on a pig in hopes of keeping there stock prices from going through the floor. Here in Upstate NY several Malls have fined them heavily for selling Used Systems and games as new. My wife worked for GS corporate DM’s are trained to hire employees and management that has no trouble lying to customers. They will tell a manager that when a customer asks for a New game or system give them a used one tell them it’s new because it is new to them…they even have a station in back to repackage heavily used Consoles to look like new machines. GS despite the front they are putting on are in trouble …they are the Enron of gaming retailers and we should see this tragically end within the next three years.

[pwnophobia]

I have 4 different Gamestops within a mile of my house, 3 of which are within walking distance of each other. I have no idea how they can keep each store open like that.

[Sloth]

i'm not surprised, Gamestop is run like a sweatshop. They treat their employees like shit, they push crap on the customer most of us don't want, and they make tons of cash money off used games.

gamestop better reap the rewards now because mass digital distribution is on the horizon. Brick and Mortar video rental is probably going to die before the decade is out.

[Demo_Boy]

Digital Distribution is coming hot and heavy by end of 2009.

Lost & Dammed
Battlefield 1943
heck: Braid, (yeh ill go there).

The used market will take a major downswing when there's no physical product and Gamestop will be right there to take it in the teeth.

And publishers will be laughing all the way to the bank.

[balamoor]

Digital Distribution is coming hot and heavy by end of 2009.

Lost & Dammed
Battlefield 1943
heck: Braid, (yeh ill go there).

The used market will take a major downswing when there's no physical product and Gamestop will be right there to take it in the teeth.

And publishers will be laughing all the way to the bank.


Yes it is and it is being driven by some sweet streaming downloads software that is not only fast but HD(space wise) economical. Personally I love the ease of going to D2D or Live marketplace and just getting what I want. No disk to lose, No creepy sale person hounding me to pre order SIMS 5. Just get and go.

[Johan]

And NOT A SINGLE PENNY will be from me. I don't like their business practices, and I have not patronized their "store" (institutional place of robbery, more like it) in years.

Screw them.

[LilAbner]

gamestop better reap the rewards now because mass digital distribution is on the horizon. Brick and Mortar video rental is probably going to die before the decade is out.

So, you're saying that digital distribution will be the norm before this year ends?

Please, surrender your crack pipe.

Realistically, I think we're 10-12 years from that being the norm.

[Virtuoso]

And NOT A SINGLE PENNY will be from me. I don't like their business practices, and I have not patronized their "store" (institutional place of robbery, more like it) in years.

Screw them.

Agreed. If I have no option but to purchase something used, I'd rather deal with the stores and individuals from amazon (where I will get better service and a lower price).

[netcraazzy]

I have 4 different Gamestops within a mile of my house, 3 of which are within walking distance of each other. I have no idea how they can keep each store open like that.

I often wonder about this as well. The mall I live near has a GS in the mall, another one right across the street and then a 3rd one just one block away. How does that make any sense? They are the new Starbucks of nonsensical store locations.

[Virtuoso]

I often wonder about this as well. The mall I live near has a GS in the mall, another one right across the street and then a 3rd one just one block away. How does that make any sense? They are the new Starbucks of nonsensical store locations.

Starbucks actually makes slightly more sense than GS. Coffee is 3 dollars, I can see that being an impulse decision made twice in the same day.

60 dollars games are not.

[lockwoodx]

Lockwoodx, your store, even though it was driving a ton of sales was probably costing GS money. If you looked that their business plan you would probably see that hardware and new game sales are very low margin, where anything used is closer to 50% profit.
I'm surprised they didn't try moving shipments of new merchandise away from your store in an attempt to drive used merchandise.

Trust me I know we were not making that much "profit" despite being the only store to break a a mill annually. It was the constant threats and hounding that drove us to not care anymore and quit.

That and the DM saying things like "I expect 9 magazine supscriptions a week or people are going to be cut. Oh btw if rip hamilton happens to stop by could you grab an autograph for my son?"

[Sloth]

So, you're saying that digital distribution will be the norm before this year ends?

Please, surrender your crack pipe.

Realistically, I think we're 10-12 years from that being the norm.

for movie rentals yes

[LilAbner]

for movie rentals yes

Ahh, ok. I can see that. I went to Blockbuster on a Saturday night (out of curiosity) and the place was completely dead at 8:30 p.m.

Blockbuster may survive with mail-only rentals, though.