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.
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