Australia saw record sales of $100,000,000 in one week in December, showing that video game sales are not being hurt by the economy, and likely being helped by it.
GME has +300 stores in Australia, and with the Australian dollar gaining against the US Dollar, so much the better for GME shareholders!
Now we know that the US, UK and Australia are showing strong video game sales, GME will crush its sandbag estimates and analysts estimates.
We have no idea whether the money used to buy video games was from the 'free' money or not. This time of year, games/consoles are being bought by gift-givers more than gamers. Consoles and games are on the top of Christmas lists. With an extra $1000, Australians could go deeper on their Christmas lists, they could also just save it. Who knows. i don't know, you don't know. But the article I cite shows that the vg sales are strong in Australia, a fact we do know, and whether it will be strong in the future, will depend on a lot more facts that you are ignoring besides the $1000 you mention. The most obvious possibility is that the economy will not be as lousy as some predict. You also fail to mention that, with global deflation, especially in the price of energy, everybody will have a few extra hundred dollars to spend that would otherwise have gone into energy consumption. I know I'm saving a few hundred dollars a month just from the falling price of gas at the pump.
If the headline comes out next month, "Australia vg sales slump in January", then be sure to post it up for the benefit of actual and potential GME shorts and longs. All kinds of headlines will come out, and we can speculate all day what they will say. I'll continue to post headlines and articles that provide facts I believe to be relevant to GME. Other board members are welcome to comment on them and provide their own fact-driven posts. I welcome that.
What a pumper! GME has 6 stores in the UK and 250 in Australia versus 4100 in the US. And you're expecting an Australian currency boost???? We're just shy of the 50 day moving average, let's see what happens after the new year since this is the only retailer where everyone is still bullish, which means plenty of supply in weak hands. Target 12 by 2/25/09!
Wrong. GME has about 56 stores in the UK.
More importantly, the article is indication of how Europe is being affected by the recession. We should see *higher* growth in GME's markets than in the US.
As for Australia...are you suggesting that it is not good news gor GME shareholders that GME is also successful there and that the market is growing faster than in the US?
I love how you bump my posts up to the top and give me the opportunity to provide more confirmation of facts and arguments that support the thesis that the video game industry is doing well in GME's markets. Thank you Mike, and keep up the good work!
More good news coming out of Australia...GameTrader, a competitor of GME, shows great sales and growth, including the used game business, as I expected (see bottom of article)
Video game sales hit new record in Christmas rush
Friday, 19 December 2008
Australian retailers have recorded their best week on record for sales of video games and video game hardware, according to new research from GfK.
The figures show last week’s sales for video game consoles and software totalled $100 million, up from last year’s $84 million.
Mark Langford, chief executive of video games chain GameTraders, says the recent spike in sales is due to the growing acceptance of video games as mainstream entertainment.
“We’re definitely up on last year; some stores are significantly up on last year. It’s the result of the Government’s stimulus package, and secondly because gaming is just everyday because it’s more mainstream,” he says.
“Every year we expect Christmas to be really good for us. Gaming has been going mainstream now for quite a few years and with the downturn and the worries about next year, people are spending less and deciding not to take holidays. If they’re going to be staying home they need entertainment.”
Langford says this has led to the rise of family-friendly entertainment. “You’ve got parents playing with the Nintendo Wii, the so-called party starters and everyone getting into gaming now. Both of those things. It’s the reason we’re doing so well.”
Jason Williams, head of Harvey Norman’s games and entertainment division, told The Australian Financial Review that a typical week outside Christmas and Easter records between $20 million and $25 million in video game sales. Currently, that number has jumped to between $40 million and $50 million.
But Langford says the downturn has provided stores like GameTraders with another form of income.
“We also do a lot of second hand and trading, and we’ve seen an increase in that from people who want to save money. All of those things are a real benefit to us.”
"Now we know that the US, UK and Australia are showing strong video game sales, GME will crush its sandbag estimates and analysts estimates."
I sure hope you are right. I'm looking for a lower price before earnings to get back in. I don't know if I'll get it or not, but I probably will in this economic environment. Bush still has time to screw up at least once more....;)
That's because the Oz govt gave out $10.4BN in cash to families, with $1,000 for each child.
Clearly that's not sustainable, govts giving away money left and right as though it's infinite. Being paper backed by nothing, I suppose it is, but you know what I mean.