http://www.gamespot.com/news/6...tml?tag=result;title;1
http://www.gamespot.com/news/6...tml?tag=result;title;0
fuck I knew I should have invested in gamestop.
World's largest specialty retailer reports record Q2 earnings on $1.8 billion in sales for the three-month period.
It's becoming difficult to remember the last time that GameStop wasn't besting its year-over-year quarterly earnings. The largest specialty game retailer in the world announced today that it had continued its trend of record-setting financials into its second fiscal quarter, seeing revenues rise sharply and profits nearly triple.
For the period ended August 2, GameStop raked in $1.8 billion in sales, a 35 percent year-over-year increase. If that number sounds familiar, that's because GameStop also pulled in $1.8 billion during its first fiscal quarter. GameStop's net profit soared an astounding 161 percent from the same period a year ago, rising from $21.8 million in Q2 2007 to $57.2 million for the current reporting period.
Noting that current-generation software sales rose 43 percent for the quarter, the specialty retailer laid out its top-five best-sellers. Take-Two and Rockstar Games' Grand Theft Auto IV was on store shelves for only five days before GameStop's Q1 ended, yet it still managed to land the top slot for the retailer's reporting period. Despite falling out of NPD's top 10 list by June, the highly acclaimed action adventure still managed to secure the top slot of GameStop's charts in Q2. Following GTAIV in descending order were Konami's PlayStation 3-exclusive Metal Gear Solid 4, EA's NCAA Football 09, Nintendo's Wii Fit, and EA's Battlefield: Bad Company.
Thanks to its better-than-expected results, GameStop also revised its full-year earnings guidance upward. The specialty retailer now projects total year-end sales to increase 23 to 25 percent. Earnings-per-share projections are now anticipated to grow by 36 to 39 percent from a year prior to between $2.45 and $2.50.
http://www.gamespot.com/news/6...tml?tag=result;title;0
Specialty retailer assures investors that lofty full-year guidance factors in an incremental reduction in price for Sony and Microsoft's consoles.
GameStop may not create video games, but it sure does make a killing selling them. Yesterday, the world's largest specialty-gaming retailer announced second-quarter net earnings to the tune of $57.2 million--nearly triple its profits from a year ago--on revenues of $1.8 billion. As part of the better-than-expected results, GameStop also said that it was revising upward its full-year guidance to investors, projecting its total sales in 2008 to climb 23 to 25 percent.
Interestingly, those estimates take into consideration a $50 price cut for both the Xbox 360 and PlayStation 3. Speaking to analysts in a postearnings conference call, GameStop chief operations officer and vice chair Dan DeMatteo commented, "Our guidance continues to assume the hardware price cut we talked about at the very beginning of the year, assuming there is about a $50 price cut on both the [Xbox 360] and PS3 going into the holiday season."
DeMatteo went on to say that GameStop expects sales of consoles in 2009 to continue unabated, "because most likely what will happen is the manufacturers will begin lowering the price to keep the velocity going."
Neither Microsoft nor Sony's consoles have had a price-cut proper in 2008, though both have seen hardware revisions. During this year's E3 Media & Business Summit, Microsoft announced that it would be discounting its 20GB Xbox 360 Pro to $299, but then discontinuing the SKU and replacing it with a 60GB system once supplies of the former dried up. Increasingly convincing rumors indicate that Microsoft will soon slash the price of all three of its SKUs, with the 120GB Elite and 60GB Pro shedding $50 each from their respective sticker tags of $449 and $349, and the HDD-less Arcade model dropping $80 to $199.
After saying that it would not discount the PS3 this year on the eve of E3, Sony revealed at its E3 press conference that it, too, would be tweaking its hardware strategy. The publisher said that it would replace its current 40GB PS3 with a similarly non-backward-compatible 80GB model at the same $399 price point. Just this week, Sony introduced a 160GB PS3 bundled with Uncharted: Drake's Fortune that will ship in November for $499.
fuck I knew I should have invested in gamestop.