Success for GameStop is "highly attributable to video game play attracting a mainstream audience," with the demographic expansion having much to do with "new consoles like the Wii, which pull back on the geekish complexity of typical content aimed at hardcore gamers."īut it's really the library of upcoming games that will supply GameStop with most of its revenue infusion in 2008. "Accelerating demand for next-gen hardware including the PlayStation 3 should benefit comparable store sales in the period," Hickey said of the company, who added it is not just demand, but broad demand which is fueling GameStop growth. One industry analyst, Janco Partners' Mike Hickey, forecasts growth for the company that builds even further on those enviable figures. "By any barometer," one company executive said in a conference call with analysts, " another outstanding year for GameStop." The company's financials tell some of the story: for all of last year, GameStop's sales increased 33 percent, same store sales increased nearly 25 percent, and profit for the company increased 82 percent compared to the previous year. GameStop executives explained their enviable position, calling the present moment for them the outcome of the game industry reaching "a transformative stage made up of many pieces, all of which have a profound impact on our business." "In fact, like we did after 9/11, we're seeing store growth as consumers travel less and stay at home more, as well as trade in more games on new game purchases." "As we analyze our sales deployment, we can't find evidence of the economy affecting our business," company officials said recently. In a perfect storm of technology, demographic shift, and pricing, the retailer is bucking the general trends in the broader economy and stands to profit like it has never before.
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Times are good, with double digit growth expected for sales of games this calendar year as well as for the hardware that's used to play those games.īut even among the winners in the game sector there is one that stands to gain the most-the nation's biggest specialty retailer of games and game-playing consoles, GameStop. There, at least for some, the economy that is breeding so much concern and trepidation seems a distant factor. Shift for a second from the very real world of kids, homes, global conflict, and cars to the make-believe world of video games.