GameStop's Profits Drop

GameStop posts disappointing profit, cuts outlook has disappointing financial results for this retail game chain. GameStop claims earnings of $38.7 million (23 cents per share) for the period ended Aug. 1, down 32% from the same period last year. Word is: "Analysts surveyed by Thomson Reuters expected a profit of 28 cents per share. Sales fell nearly 4 percent to $1.74 billion, while same-store sales, or sales at stores open at least a year, fell 14.1 percent." GameStop has also lowered its financial outlook for the rest of the year. There's a follow up on IndustryGamers quoting GameStop CEO Dan DeMatteo's optimism for the future: "To all of you who follow this industry, I would like you to begin thinking in respect to 2010 and what it's going to look like, and I think if you look at the model of 2008 you're going to find a very similar set of circumstances in 2010 that will drive the business bigger for both us and the entire industry."
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22.
 
Re: GameStop's Profits Drop
Aug 21, 2009, 07:05
22.
Re: GameStop's Profits Drop Aug 21, 2009, 07:05
Aug 21, 2009, 07:05
 
i dont love gamestop but this was a deeply lackluster quarter for new game releases.

'Halo whatever it is' will release for 60 bucks next month and they will be swimming in the profits.
21.
 
Re: GameStop's Profits Drop
Aug 21, 2009, 03:49
21.
Re: GameStop's Profits Drop Aug 21, 2009, 03:49
Aug 21, 2009, 03:49
 
Thank you, that's exactly what I mean. Thinking that businesses are concerned about balancing the greater economy is giving them too much credit. It's about the growth of the company, regardless of what happens to anything else. In any event, my concern was not with the economy itself, but with what this mindset creates. And that's the, "me me me, more more more" mentality. Does anyone think Gamestop wouldn't love to put up a store on every corner if it were profitable? In an area near me there are two Gamestops at opposite ends of the same mall, (and it's not even a large mall, it's one level) another Gamestop in the strip mall just outside of the mall, and another at a strip mall on the road behind the mall. Of course, they did this by buying out their competition, notably EB Games, but they're all still there and all Gamestop.

Oh, and about Gamestop continuing to cut hours... our store (a mall store) is being allocated 90 hours for next week. This, I suppose, would be fine if it was because people just weren't coming into the store. However, the store is still remaining busy, it's just fewer people are actually buying anything, or if they are, they're buying cheaper items. People will come up with *stacks* of games, and it will still not tally up to the price of one new game. So the employees are still doing about the same amount of work when the company is making considerably less money, and now the ones who are in the store will actually be *more* rushed and doing *more* work than before, for the same hourly pay. (and fewer overall hours, which = less overall pay) And of course what that means to the customer is... worse customer service. (not that I don't look at most every customer as an asshole until proven otherwise anyway: the result of working retail for too long)
20.
 
Re: GameStop's Profits Drop
Aug 21, 2009, 01:00
20.
Re: GameStop's Profits Drop Aug 21, 2009, 01:00
Aug 21, 2009, 01:00
 
Try adjusting used game prices to real world market value.

I but a lot of used games....but the majority of my purchases are from half.com
19.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 19:36
19.
Re: GameStop's Profits Drop Aug 20, 2009, 19:36
Aug 20, 2009, 19:36
 
In the state of Florida, that is literally true. When you go to trade in games you fill out the exact same paperwork as if you were bringing something to a pawn shop. You get fingerprinted and everything. Nice

That's the way it should be, you would be seriously shocked at the volume of stolen goods that flows through Gamestop.
18.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 18:21
18.
Re: GameStop's Profits Drop Aug 20, 2009, 18:21
Aug 20, 2009, 18:21
 
You clearly don't understand the economy.

Beamer I don't think what he said conflicted with what you said. As you note, there's always something on the decline while others are on the rise. That is normal.

Something is always growing.

True, as long as it is replacing something. If something grows unchecked however, that is called cancer and it is fatal. Growth with disregard to the larger organism is a disease and that's what Rossafur was talking about.

Seriously, would you invest in a company if you knew they'd simply sustain their stock price and not grow?

I'd be obsessed with growth and profit if I was perpetually dissatisfied with what I have now. We have it good now in many ways. Compulsive obsession with having more at any cost is a disease of the mind. It creates a hell on earth. Of course there's nothing wrong with commerce and making money, necessarily.
Perpetual debt is slavery.
Avatar 23321
17.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 18:01
17.
Re: GameStop's Profits Drop Aug 20, 2009, 18:01
Aug 20, 2009, 18:01
 
The beginning of the end.

Since they make almost all their money on one thing which everyone wants to either cut in on or eliminate, they are eventually toast.

The BestBuy used game price match, and those game vending boxes are just the start. Also, before long, either next gereration or the one after, at least one console will go to a digital download model.
16.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 17:18
16.
Re: GameStop's Profits Drop Aug 20, 2009, 17:18
Aug 20, 2009, 17:18
 
The writing is on the wall, GameStop.
Avatar 13818
15.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 17:06
15.
Re: GameStop's Profits Drop Aug 20, 2009, 17:06
Aug 20, 2009, 17:06
 
@Tumbler
Yes, Goozex is great, though I haven't used it in a while since I haven't gotten a new game in ages. But, I have gotten many used games from there for free. Unlike gamestop, their points value per game is very reasonable.
So far I got the following games there and all I did was trade in old crappy games which I never played.
Devil May Cry 4, Pirates! Live the Life, Supreme Commander, Civilization 4, Company of Heroes + Opposing Fronts and World in Conflict.
14.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 16:51
14.
Re: GameStop's Profits Drop Aug 20, 2009, 16:51
Aug 20, 2009, 16:51
 
GameStop; pawn shop for crackheads!

In the state of Florida, that is literally true. When you go to trade in games you fill out the exact same paperwork as if you were bringing something to a pawn shop. You get fingerprinted and everything. Nice!
"Everybody out of the universe!" - Nibbler, Futurama
13.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 16:37
13.
Re: GameStop's Profits Drop Aug 20, 2009, 16:37
Aug 20, 2009, 16:37
 
It's the whole BS idea of growth instead of sustainability that's literally destroying the world. Our society is obsessed with the idea that every company must grow and continue to make increasingly larger amounts of money, that more and more land should become developed, and every home should become larger with more and more possessions inside of them.
It's UNREALISTIC. There are finite resources and a finite amount of space on this planet.

You clearly don't understand the economy.
Something is always growing. In order for something to grow, something else is likely declining. This isn't 100% true, but it's pretty close. As DVD sales grew VHS sales declined. As mp3 sales grew CD sales declined. As the internet grew newspaper sales declined. As an aside, this relates back to the "substitutes" discussion. As computer sales rose TV viewership growth declined. Computers are therefore a substitute for television.

Now, if you're an investor, the audience DeMatteo is addressing here, where do you want your money? Do you want it in something declining? Of course not. Do you want it in something sustaining? Not really. You want it in something growing. There's always SOMETHING growing, and if you put it there your money will grow. Elsewise it's better off in a bank.

So of COURSE he'd making excuses for not growing! He needs to say "listen, bad quarter, we'll do better next time" otherwise investors will pull their money from him. Sustaining is good for small companies run by their owners. For publically traded it's growth or bust.

Seriously, would you invest in a company if you knew they'd simply sustain their stock price and not grow?

This comment was edited on Aug 20, 2009, 16:39.
12.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 16:28
12.
Re: GameStop's Profits Drop Aug 20, 2009, 16:28
Aug 20, 2009, 16:28
 
It's the whole BS idea of growth instead of sustainability that's literally destroying the world. Our society is obsessed with the idea that every company must grow and continue to make increasingly larger amounts of money, that more and more land should become developed, and every home should become larger with more and more possessions inside of them.
It's UNREALISTIC. There are finite resources and a finite amount of space on this planet. And that's why we'll just end up spreading to space and continuing it on and on and on...
But if you think about it, this mentality is even reflected in our games, especially RPG's...
11.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 15:48
11.
Re: GameStop's Profits Drop Aug 20, 2009, 15:48
Aug 20, 2009, 15:48
 
This corporate mentality needs to stop (I'm referring to the story above, not the comments). I am so damned sick and tired of a company that does not consider itself having a successful fiscal year/quarter/whatever unless they made a bigger profit than they previously did. The fact that they made a profit, especially in the current economic climate, should be considered good news. You made a profit? Good. Unhappy about the profit you made? Fuck. You.
10.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 15:28
10.
Re: GameStop's Profits Drop Aug 20, 2009, 15:28
Aug 20, 2009, 15:28
 
Are there pawn shops that *aren't* for crackheads?
Could this mean they'll drop my hours to even *less* than 7 a week? Oh, I think they can... If I wasn't so apathetic I'd be out busting my arse looking for a new job right now, haha. But then that's how I've stayed there as a grunt for over two years...
9.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 15:23
9.
Re: GameStop's Profits Drop Aug 20, 2009, 15:23
Aug 20, 2009, 15:23
 
Not to mention that their console game prices suck.
8.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 15:19
8.
Re: GameStop's Profits Drop Aug 20, 2009, 15:19
Aug 20, 2009, 15:19
 
This year has been barren for big game releases, so it's not really surprising.
7.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 15:07
7.
Re: GameStop's Profits Drop Aug 20, 2009, 15:07
Aug 20, 2009, 15:07
 
I either A)Use amazon B)ebay C)Goozex

...what is goozex...

*reading*

Wow! I'm totally signing up for this. My gamefly sub has been just a way to play old ps3 games lately. This is perfect for that! I have plenty of old games to trade in.

Thanx for that.
6.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 14:51
6.
Re: GameStop's Profits Drop Aug 20, 2009, 14:51
Aug 20, 2009, 14:51
 
Well, with the addition of Steam and D2D, I've stopped going to gamespot, they don't even stock PC games where I live.

I either A)Use amazon B)ebay C)Goozex
5.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 14:39
5.
Re: GameStop's Profits Drop Aug 20, 2009, 14:39
Aug 20, 2009, 14:39
 
Well they pop up new stores like gerbils and they expect to be profitable?
Avatar 6174
4.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 14:23
4.
Re: GameStop's Profits Drop Aug 20, 2009, 14:23
Aug 20, 2009, 14:23
 
hmmm maybe they shouldn't have reduced their pc game selection to 1 rack of shit.

This comment was edited on Aug 20, 2009, 14:23.
Avatar 18283
3.
 
Re: GameStop's Profits Drop
Aug 20, 2009, 14:22
3.
Re: GameStop's Profits Drop Aug 20, 2009, 14:22
Aug 20, 2009, 14:22
 
30% down over 1 year is surprising. Seems the retail side of this industry is going to have a tough year. Good news for me! Should continue to see great sales!

This comment was edited on Aug 20, 2009, 14:25.
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