GameStop Banking On "Used Product"
Grapevine-based GameStop this morning reported its first-quarter '09 financials, which look pretty nice on the surface: Total sales were up 9.2% to $1.98 billion, and net earnings jumped 13.4% to $70.4 million. Among the reasons cited for the increased income: the release of the Nintendo DSi and such titles as Resident Evil 5 and Street Fighter IV -- though neither proved as popular as last year's Grand Theft Auto IV or Super Smash Bros. Brawl.
But don't look to the new game sales' stats. Fact is, says CEO Daniel DeMatteo, sales of new titles dropped by almost three percent in the first quarter, whereas "lower-priced used products grew a robust 31.9%, illustrating that value is becoming more important to our customers." But behind the good news is this warning: Second-quarter numbers are likely to drop.
Get the This Week's Top Stories Newsletter
Every week we collect the latest news, music and arts stories — along with film and food reviews and the best things to do this week — so that you’ll never miss Observer's biggest stories.
- What's a Neighborhood Plus, Anyway?
Sun., Oct. 11, 3:25pm
Tue., Oct. 13, 7:30pm
Thu., Oct. 15, 6:30pm
Fri., Oct. 16, 7:05pm
- Ken Paxton Wants Dan Patrick to Do Scary Things to Women
- Oh, Brother, Between Hawk and the Democrats, This Is Getting Knee-Deep