GameStop, Take Two Expected to Post Disappointing Financial Results

[fitbabits]

Thanks to GamesIndustry.biz (http://www.gamsindustry.biz) for the news (http://www.gamesindustry.biz/content_page.php?aid=13850).

Top US retailer GameStop and leading publisher Take Two Interactive are both set to announce financial results tomorrow, with analysts expecting both firms to release disappointing figures after a tough final quarter for the industry.

It's widely expected that [GameStop's] nine-week revenues will be down from last year's figure, owing to weak software sales and lower than expected sales of Xbox 360, which was shipped in smaller volumes than most commentators expected.

Take Two, meanwhile, will tomorrow announce its results for the fourth fiscal quarter - which ended on October 31st, and is expected to use the opportunity to drop its projections for the first fiscal quarter of 2006, which ends on January 31st, and for FY06.
I'm still baffled as to why publishers wait to release games during the traditional holiday period rather than spread the releases through the year. There's no way I could afford to buy every game I wanted this year, especially with rising gas prices and home heating costs.

UPDATE - 01-05-2006

From Next Generation (http://www.next-gen.biz):

Compared with December figures a year prior, GameStop exhibited an 8.7 percent increase in sales, in spite of Xbox 360 shortages.

GameStop also reported a 133 percent increase in holiday sales as compared to the previous year, however the increase was primarily a result of the Electronics Boutique merger. A more accurate figure comparing store sales during the holidays indicated a 1.5 percent decrease, which was in line with expectations.

"While new video game sales were slow in November, they rebounded in December, and we experienced near double digit growth, but did so on a broad range of titles," said chairman and CEO R. Richard Fontaine. "Hardware sales were also strong and our used product attracted the value shopper while making a significant contribution to total gross margin increases for the period."
More (http://www.next-gen.biz/index.php?option=com_content&task=view&id=1962&Itemid=2).

[LilAbner]

While you bring up a good point fitbabits, the reality is people buy more games during the holidays.

[fitbabits]

While you bring up a good point fitbabits, the reality is people buy more games during the holidays.
Reality sucks! :)

[Jacob Singer]

Gamestop needs to work on their customer service, at least in their online department. I ordered two games from them last Thursday, before noon, and paid extra for overnight shipping. As of Tuesday (yesterday) morning they still had not shipped. I cancelled the order and placed the exact same order at EBGames online. They processed it same day, shipped it last night and it arrived by UPS not five minutes ago.

Guess where I'll go next time, Gamestop?

[bean19]

I'm still baffled as to why publishers wait to release games during the traditional holiday period rather than spread the releases through the year. There's no way I could afford to buy every game I wanted this year, especially with rising gas prices and home heating costs.

The reason is that they are trying to access the soft market of parents who only buy videogames around Christmas or birthdays. The loss in sales they get from stacking up against a huge number of other competitive products is usually smaller than the gain they get from taking advantage of this market.

Also, when they plan for a Fall release date, they aren't thinking that they are releasing an average or only fairly good product that will get eaten alive in the Sep.-Nov. gaming crush. They are thinking they'll have a hit because people don't like to be honest with themeselves about their brain-childs.

A lot of these games would probably sell a ton more copies if they released between May and August when we traditionally see the gaming drought (The first and second quarters usually have a sparse but sometimes very appealling lineup of games.)

Still, if you can only expect prominent placing of your product in stores for abut 3 weeks to 2 months (for hits), it makes sense to try to release during the best selling dates.

Hopefully downloadable distribution will serve the PC well in this, but I think we will see this trend until the NEXT next generation of consoles. Once they can have a game able to be directly sold to the consumer for months to come, good games will be released year round.

[Xaerin]

There's no way I could afford to buy every game I wanted this year, especially with rising gas prices and home heating costs.[/I]

So take the bus and put on an extra coat! Get your priorities straight man!

Roll on this new future of games released round the year of which bean19 speaks. If the Phantom was real we could've been experiencing such a gaming distribution utopia THIS generation. Oh well, it's not as if we're not all experts at the waiting game.

[fitbabits]

So take the bus and put on an extra coat! Get your priorities straight man!
But I also have five mouths to feed - cut a man a break! :o

[NoName]

I'm still baffled as to why publishers wait to release games during the traditional holiday period rather than spread the releases through the year. There's no way I could afford to buy every game I wanted this year, especially with rising gas prices and home heating costs.
Because the publishers are all trying to make baby Jesus cry.

To compensate for all the games getting released, I just bought DQ VIII and decided to not buy more games until I was completely done with it, "sidequests" and all.

I think that decision made my wallet happy ;).

[fitbabits]

Because the publishers are all trying to make baby Jesus cry.

To compensate for all the games getting released, I just bought DQ VIII and decided to not buy more games until I was completely done with it, "sidequests" and all.

I think that decision made my wallet happy ;).
I wish I had your gaming nous. Sadly I feel compelled to keep buying and buying and buying...

[bean19]

I wish I had your gaming nous. Sadly I feel compelled to keep buying and buying and buying...

Are you one of these people that have a collection of unopened games?

I have a friend who does that and it drives me mad. . . of course, he WORKS so he can afford these games, and then never has time to play them. This has led me to thinking about shifting my major to a teaching job as I'd like to have lots of time off.

The problem with this is that I can't imagine teaching young children (I'm too impatient), and I can't imagine being respected by teenagers as I am 23 now and still look like a high school student.

I guess I could stay in college and eventually become a professror, but many of them don't get summers off work. They either teach more classes or have to earn research grants for the college.

Anyone know of any other profressions that give people a lot of time off work but still pay fairly well?

[ChunderMan]

Gamestop needs to work on their customer service, at least in their online department. I ordered two games from them last Thursday, before noon, and paid extra for overnight shipping. As of Tuesday (yesterday) morning they still had not shipped. I cancelled the order and placed the exact same order at EBGames online. They processed it same day, shipped it last night and it arrived by UPS not five minutes ago.

Guess where I'll go next time, Gamestop?
You do realize that GameStop bought out EBGames a few months ago, right? You're essentially buying from the same retailer...

[fitbabits]

Are you one of these people that have a collection of unopened games?

I have a friend who does that and it drives me mad. . . of course, he WORKS so he can afford these games, and then never has time to play them. This has led me to thinking about shifting my major to a teaching job as I'd like to have lots of time off.

The problem with this is that I can't imagine teaching young children (I'm too impatient), and I can't imagine being respected by teenagers as I am 23 now and still look like a high school student.

I guess I could stay in college and eventually become a professror, but many of them don't get summers off work. They either teach more classes or have to earn research grants for the college.

Anyone know of any other profressions that give people a lot of time off work but still pay fairly well?
Yes, I'm afraid I'm one of those people. I work long hours and am paid reasonably well, but I just don't have enough time to devote to gaming now that I have a house, a wife, three cats, and numerous bills to pay. Still, I spend as much time as possible playing games...

As for flexible jobs - teaching would work, especially community college teaching. That's where I aim to end up in 5 year's time when my wife has finished her pediatrics residency and is making doctor-sized dollars.

[frederec]

I have a friend who does that and it drives me mad. . . of course, he WORKS so he can afford these games, and then never has time to play them. This has led me to thinking about shifting my major to a teaching job as I'd like to have lots of time off.

The problem with this is that I can't imagine teaching young children (I'm too impatient), and I can't imagine being respected by teenagers as I am 23 now and still look like a high school student.

I guess I could stay in college and eventually become a professror, but many of them don't get summers off work. They either teach more classes or have to earn research grants for the college.

That's one of the reasons I'm heading to being a professor - I want to teach college level. The big catch is that at this point I'm a few months away from my PhD, and this summer is going to be my ten-year high school reunion. The best part is, even getting a PhD isn't enough to get a REAL professor job (read: tenure track position). I'll need to do between two and who knows how many more years of postdoc work before I'm qualified.

But on the upside, I really do have way more flexibility in when I work. When I teach a class, no one checks on me in any serious way. It's a little eerie to think how much freedom I have to do what I want. It's just my own standards and desire to do things right that get it done.

[Emabulator]

Gamestop needs to work on their customer service, at least in their online department. I ordered two games from them last Thursday, before noon, and paid extra for overnight shipping. As of Tuesday (yesterday) morning they still had not shipped. I cancelled the order and placed the exact same order at EBGames online. They processed it same day, shipped it last night and it arrived by UPS not five minutes ago.

Guess where I'll go next time, Gamestop?I've had the same kind of luck with orders from Gamestop. I no longer shop there for that reason. These days I price shop between EB and Gogamer.

[drakkarim]

Anyone know of any other profressions that give people a lot of time off work but still pay fairly well?

I hear that being a gay porn actor pays quite well, and the hours are flexible as well... gotta be in decent shape at least though.

[superherotaco]

You do realize that GameStop bought out EBGames a few months ago, right? You're essentially buying from the same retailer...

They still probably have their own unique infrastructure in place though, maybe even their own middle management system too that works alongside GameStop. Profits may also be divisionally split between the two, so the higher ups will still see the money from both companies, but on the store level and possibly middle management levels they may be unique companies.

Thus they may have different practices in pricing, advertising, and customer service.

[Lutheran]

Anyone know of any other profressions that give people a lot of time off work but still pay fairly well?


Crack dealer :) Get a government job like me and spend a lot of time with your handheld whilst getting paid.

[Groo]

T
I'm still baffled as to why publishers wait to release games during the traditional holiday period rather than spread the releases through the year. There's no way I could afford to buy every game I wanted this year, especially with rising gas prices and home heating costs.

It's because, every one in a while, a publisher releases a game during the holiday season that does really well (perhaps even better than it would normally sell). So, through some twisted logic, they think that every game they release during the Holiday Season will sell well. And if it doesn't, they blame it on the game (instead of a shitty release schedule).

[automaton]

I've got a pile of unopened games at home right now. I one of those who makes good money, and in return get no time to play what I buy. Off the top of my head... Sly Cooper 3, Battalion Wars, Castlevania Dawn of Sorrow, Advance Wars Dual Strike, Final Fantasy 1 & 2.

I think I have a problem and need help. I'm not addicted so much to playing games and I am addicted to buying them.

[fitbabits]

I think I have a problem and need help. I'm not addicted so much to playing games and I am addicted to buying them.
At one point I had more unopened/unplayed games than opened/played ones! :o

I just can't resist buying games - that's all.

[dr_wily]

me too, i have a stack of unplayed/sealed games im working on.
just got 5 more for xmas..

[dmcintos]

I have made a New Years Resolution, not to buy any more games until I have played what I have. The problem happens when you start out gaming as a kid and then when you get old enough to have a job and make money you feel like you are rich!!!!
But with all the money comes alot more hours working and not much time left for playing games. I have a wife and two sons, and they get pretty much of what time I have left after work. But I have still bought games like I would if I had the money when I was a kid... maybe I'm still a kid???
As for the best job..... anything political... you get to vote on your own salary and hours :)

[automaton]

I would love to follow that policy (not buy new games until I play my current ones), but I've missed too many games that way. I can think of several games I waited on and now I can't find them...

Cubivore
Klonoa 2: Lunatea's Veil
Rez

All of these I expected to drop in price after a while. They either disappeared or now they cost too much for me to bother with.

[bean19]

As for the best job..... anything political... you get to vote on your own salary and hours :)

Oh, very nice idea.

However, I'm instantly disqualified. . . I was a club-kid from ages 17-20, and I've been photographed a ton. While this is probably not as bad as having DWI's and other legal problems (like Bush), I am not wealthy and I'm not politically connected.

Maybe something local or state. . . This seems like the wrong reason to campaign for office though. :)

[dmcintos]

their are many local "political offices" to be filled, I don't know anything that can make you ineligible other than not being a US citizen. We had a man who was elected sheriff in a nearby town that couldn't carry a hand gun because he was currently on parole... thats not a joke!
However seeking office on the platform of more time off to play video games maybe too honest for the general public. I find that most people prefer fantasy to reality i.e. video games :)