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GameStop Corp. Message Board

  • fbertital fbertital Nov 14, 2011 12:57 PM Flag

    Matter of fact the market will look to 4th.

    quarter guidance and see if its up year over year. That will probably make 3rd q. almost irrelevant.

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    • Yes and No.

      There are some Key Metrics and I may as well share them that everyone that decides to go LONG the stock straight into the earnings report should keep aware of...

      1) PRE-PURCHASE POLICY: Is this a double edged sword that beefs up current quarter earnings, but cannibalizes future quarter earnings? Just how BIG of an impact is this having on EPS?

      I was an absolute pessimistic skeptic that any customer would actually PRE-PURCHASE their pre-order. I was wrong, deeply wrong....It seems far more popular/wide spread to me now. So, I kinda as an investor want to know what this all means for current and future Earnings Reports.

      2) PS VITA & 3DS) With Nintendo suddenly optimistic over sales of the 3DS, how is PS VITA doing?

      It seems to have rave reviews everywhere except many customers are cringing at the $300 price tag for the top model.

      3) Canniballization) What is Gamestop going to do with their Bricks and Mortor stores as both DEUS EX and now BATTLEFIELD 3 are clearly canniballizing sales.

      The SHORTS would say: "See? Told you so! Gamestop is in trouble now."

      But, it was Gamestop that gave the Deus EX digital copy a far better deal for Customers than they were giving the Physical copy.

      Where does it make sense to make the DIGITAL version the better deal? How is Gamestop managing DIGITAL vs. PHYSICAL given the NPD reports?

      Seems naive...why didn't they just make the 2 versions of DEUS EX have the exact same deal?

      If Gamestop's C.E.O. Paul Raynes can justify having 2 different deals then so be it. But, I do not see the logic.

      Those are TOP 3 things to think about heading into the Earnings Report.

      Good Answers for all 3 of these + a solid Q4 outlook would do wonders for this stock.

      A Solid Q4 outlook and total silence on these 3 major issues? *Ugh*

      Wall Street Investors aren't stupid. They should be smarter than me. So I highly doubt I am the only one here with these 3 major issues.

      • 1 Reply to varchild2010
      • Just some more thoughts:

        Cannibalizing sales doesn't necessarily mean earnings are going SOUTH. It just means you are selling more digital copies of Battlefield 3, less copies of NEW SKU Physical.

        Therefore.... NPD Reports come out looking much worse than they would/should have.

        Impulse is FAR BETTER than what had before when selling Digital Copies of games. Therefore, DIGITAL sales have skyrocketed for them since IMPULSE.

        So Gamestop is not necessarily losing earnings..profit...income....revenue.....etc. from selling digital (Although some can argue it hurts Re-Sale).

        But their Same Store Sales are taking hits. Major hits in my opinion. That's not good.

        What GAMESTOP could theoretically do to limit the damage is to somehow tie more of the DIGITAL sales to the stores.

        A) Impulse Currency Cards would greatly help. Especially now with hacker concerns over at STEAM. In this way the STOREs get a share of the digital sales.

        Those that buy IMPULSE digital games as they are bought today, the money goes to IMPULSE to manage. Stores see NOTHING.

        With Impulse Currency Cards...Those afraid of getting their Credit Card Number stolen by hackers...will buy currency cards with CASH at GAMESTOP stores and just use those like a gift card.

        IMPULSE sees no money from these transactions as it all goes to the STORES.

        B)Refer back to physical deals....

        Huh? Basically sell DIGITAL games but at times tie the physical stores to the overall deal you got when buying the game on IMPULSE.

        It's simple...

        It could be "PRE-ORDER PROTOTYPE 2 on IMPULSE and get $5 off any Pre-Owned Physical Game at GAMESTOP.

        The reality is if GAMESTOP is going to keep canniballizing their stores then they are NUTZ and the SHORT FLOAT will keep climbing.

        If GAMESTOP does the right thing here and brings DIGITAL customers to PHYSICAL stores or brings some of the DIGITAL $$$$ to the PHYSICAL stores....the Shorts are in deep deep deep deep deep trouble.

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