QUOTE AND NEWS
TheStreet.com  8 hrs ago  Comment 
NEW YORK (TheStreet) -- GameStop  is up 2.39% to $45.45 in premarket trading on Friday. GameStop has been upgraded to "buy" from "neutral" at Bank of America , raising its price objective to $56 from $43. Earlier in the week, Bank of America...
Benzinga  10 hrs ago  Comment 
MarketWatch  9 hrs ago  Comment 
High-flying momentum stocks Facebook Inc. and Tesla Motors Inc. fall into bear market territory on Friday after slumping in line with the broader market’s decline.
Benzinga  Apr 3  Comment 
Shares of Gamestop (NYSE: GME) are standing out in negative broader indexes after BB&T Capital released some bullish comments. Analyst Anthony Chukumba believes GameStop's position in the used video game marketplace is “highly defensible”...
SeekingAlpha  Apr 1  Comment 
By The Archivist: GameStop Corp. (GME) has seen its best days behind it. There is a small chance that the company might reinvent itself, but that would be the victory. For many companies, especially one that was GameStop's size, continued...
SeekingAlpha  Mar 29  Comment 
ByRobert Wagner: The first time I ever heard of the company GameStop (GME) was back in 2008 when I overheard a commentator mention that GME had a larger capitalization than General Motors (GM). GM of course went on to file for bankruptcy, but the...
TheStreet.com  Mar 28  Comment 
NEW YORK (TheStreet) -- GameStop  rebounded 6.7% at 3:13 p.m. on Friday after Sterne Agee remained optimistic about the video game retailer in the wake of its weaker-than-expected fourth-quarter results. GameStop reported results and issued...
Cloud Computing  Mar 28  Comment 
CHICAGO , March 28, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks...
BusinessWeek  Mar 27  Comment 
GameStop plans to spend more than $35 million to open 300 to 400 retail stores selling other types of electronics
CNBC  Mar 27  Comment 
CNBC's Seema Mody looks at three stocks to watch tomorrow, including TriNet Group, GameStop and Twitter.
MarketWatch  Mar 27  Comment 
Citigroup is one of the biggest losers in the S&P 500 Thursday while GameStop heads south on a smaller quarterly profit. The much-pilloried Lululemon Athletica of the sheer yoga pants fiasco rallied in the wake of better-than-expected earnings.




 
TOP CONTRIBUTORS

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]

Products[1]

  • 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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