Gamestop Profits Up in Q122 May, 2008 By: Chris Tribbey
GameStop Corp. enjoyed profits of $62.1 million during its first fiscal quarter ended May 3.
The video game retailer's profits were up 151%, compared to the same period in 2007, with sales of $1.81 million. New video game software sales were up 72%
“The installed base of video game consoles grew 34% in 2007, or nearly 31 million units, the highest incremental growth in the history of the business, and we are forecasting that hardware unit sell-thru will match these levels in 2008,” said GameStop chairman and CEO R. Richard Fontaine. “And behind the huge hardware growth is the fact that the demographic for video gaming is expanding dramatically as industry figures indicate that 38% of game players are female.”
Regarding the PlayStation 3, GameStop COO Dan DeMatteo added, “ … We have been sufficiently happy with the rate of sale on the PS3 at its current price points, [and] assuming it continues at that rate we'd be just fine holding the price.” He also hinted that the Xbox 360 might see a price cut this year.