"Despite smaller growth this month, the industry is up 32 percent year-to-date and remains on target to achieve annual revenues in the range of $22 billion to $24 billion," Frazier said in a statement.
AP Business Writer Barbara Ortutay in New York contributed to this report.
If you read the whole AP article you will see that it is (Software) going to meet the high goals set for 2009. This is most likely going to cause a drop in stock prices in the morning and should rebound in the afternoon as people understand that Aug is a school shopping month and gift shopping isn't until NOV DEC. When GME makes a killing every year!
Overal the August numbers were strong and with the X-box cut which is doubling sales of hardware GME and its 2nd hand game sales will also increase as New machine buyers don't have any games to play on those NEW system. That is increased traffic and increased same store comps vs last years new game only sales. This season has a higher stock pile of used next gen games that parents are going to purchase for these new low priced systems. That means higher profit margins and more to the bottom line.
That report is a good thing for GME. I do only see a 40.00 to 45.00 yearend price on the stock. Market is going to get spooked. I would like to have GME managers come out and re affirm 2009 projections and give a little X-box guideness for the market in general.
Overall the Software companies like TTWO, ERTS, and etc. are the ones that hurt from a downturn in game sales as they rely on first hand sales and not resales of products to new or poorer gamers.
I thought with the Madden release, these numbers were going to be really good. Am I correct that the expections were higher for this month? I am not talking about total 2008 sales; just the month of August.
Off of tough year over year in a horrid economic environment pretty damn good actually. Software sales rose 13 percent to $489.1 million. Some people expected flat sales. Pressure has been on this stock because some were expecting much dire numbers.
GME is on track to grow over 35% this year. Nothing lousy about that.
August doesn't account for the "retailers reporting over 100 percent sales lift for all Xbox 360" since last weeks price cuts. Console price cuts always spark software sales all great news going forward.
" the industry is up 32 percent year-to-date and remains on target to achieve annual revenues in the range of $22 billion to $24 billion," Frazier said in a statement."
Yeah pretty "lousey". Look at the big picture not the small. With all the doom and gloom this sector is doing stellar and better economic times are around the corner.