Forbes  Oct 1  Comment 
A while back, I traded in my Xbox 360 and all its games to GameStop. The 360 would not connect to Xbox Live anymore no matter what I did, and I was a few months into owning an Xbox One, and found little use for the old system.
Forbes  Sep 29  Comment 
The American video-game retailer GameStop should be going into the holiday season with high confidence, as the gaming industry seems to have improved in terms of software sales. However, the point of concern is whether the decline in hardware...
MarketWatch  Sep 29  Comment 
GameStop Corp. said it plans to hire 28,000 seasonal workers for the upcoming holiday shopping season. That represents a 12% increase from the 25,000 it hired a year ago, and a 64% jump from the 17,000 hired in 2013. The seasonal hires will begin...
TheStreet.com  Sep 29  Comment 
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener. NEW YORK (TheStreet) -- Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading. AA...
Benzinga  Sep 18  Comment 
Ryan Craver was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. GameStop Corp. (NYSE: GME) has delivered stellar performance year-to-date, gaining 29 percent. Retail Expert...
Market Intelligence Center  Sep 17  Comment 
GameStop Corp. (GME) closed Wednesday at $43.98 and technical indicators recently have been bullish. Based in part on those numbers, MarketIntelligenceCenter.com's patented algorithms have identified a couple of attractive trading opportunities in...
Forbes  Sep 14  Comment 
GameStop has recognized that despite all the digital noise, people still really like to go to stores. It leverages data from its loyalty program and knowledgeable employees to create a great customer experience,
Motley Fool  Sep 11  Comment 
The video game retailer insists on physical discs. It's clearly in GameStop's best interests to impede the digital transformation of the industry.
Benzinga  Sep 3  Comment 
Evan Wilson of Pacific Crest attended GameStop Corp. (NYSE: GME) exposition on Wednesday in which he observed "plenty of buzz and excitement" around the upcoming video game release slate. Wilson said that the exposition reinforced his prior...


GameStop (NYSE:GME) is the world's largest retailer of video game hardware and software. The company has saturated U.S. mall locations, and is now expanding into strip centers and international locations to drive store growth. In addition to its size, Game Stop differentiates itself from its competitors by carrying one of the largest assortments of used video games. The used business is important to GameStop, as used games are more profitable, with 46.8% margins vs. 21.3% for new games.[1] The company earned $9 billion in net sales and $376 million in net income in 2009.[2]

Like other video game retailers, the company is also dependent on new console releases to drive software and accessory sales. The three main video game consoles in the market are Sony (SNE)'s Playstation 3, Microsoft (MSFT)'s Xbox 360 and Nintendo (NTDOY)'s Wii (see Game Consoles Wars: Xbox 360 vs. PS3 vs. Wii), which are nearing the end of their cycles. Retailers, like GameStop, will be much more successful in the middle of cycles and will generally fare worse in between cycles.

Company Overview

Gamestop operates 6,450 stores in the United States, Australia, Canada and Europe, primarily under the names GameStop and EB Games. The company also operates electronic commerce Web sites, including www.gamestop.com, and publishes Game Informer, the industry’s largest multi-platform video game magazine in the United States based on circulation, with approximately 4.0 million subscribers.[3]


  • New Video Game Hardware - 19.3% of net sales, 6.5% of gross profit
  • New Video Game Software - 41.1% of net sales, 21.3% of gross profit
  • Used Video Game Products - 13.2% of net sales, 46.8% of gross profit
  • Other - 13.2% of net sales, 33.8% of gross profit (other products include PC entertainment and other software, accessories, and magazines)

Key Trends and Forces

Increasing Popularity of Video Games

The Entertainment Software Association (“ESA”) estimates that 65% of all American households play video or computer games.[4] With the evolution of technology providing a more realistic playing environment and the creation of family friendly game consoles like the Nintendo Wii, video games are more popular than ever. Additionally, video games can also be more than just about the games -- the Wii Fit Plus combines fitness with gaming and is geared to people of all ages. The increasing popularity of these kinds of games means a higher demand for video games, and a better bottom line for Gamestop.

The Video Game Industry is Very Cyclical

Video game producers and retailers are extremely dependent on new video game hardware to drive business. The main video game consoles are Sony (SNE)'s Playstation 3, Microsoft (MSFT)'s Xbox 360 and Nintendo (NTDOY)'s Wii (see Game Consoles Wars: Xbox 360 vs. PS3 vs. Wii), all of which are nearing the end of their. Hardware sales are usually greatest in the third year of a cycle, and software sales are greatest in the fifth year. Gamestop will look to capitalize on rising software sales rather than hardware sales as these systems mature.

Expanding Target Market

In the late 1970's when video games were first created, the average age of a gamer was ten years old. The average age of a gamer today is 13 years old, according to the Entertainment Software Association. In addition, 25 percent of Americans over the age of 50 play video games on a regular basis. More and more people are spending money on video game hardware and software, which benefits the entire industry. Also, young children are spending more time playing video games, and less time with traditional toys and games. More video game players means more people buying Gamestop's products.[4] dss

Female Video Game Use

Video games have traditionally been a male-dominated market, but the number of female gamers has grown significantly. In 2009 40% of video game users were female. However, most of these female gamers are casual gamers who play card, word, and puzzle games online. These typically older women are not buying video game hardware and software.[4]

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