Ok...Let's do "GOOD NEWS" "BAD NEWS" and then I'll leave my personal opinions out of it for now as to what I think about the overall NPD report.
1) Software Sales surpassed the most optimistic estimate
that I've read...including PC Sales software up 16%. Up 15% not including PC.
2) In Eric Savitz's article he mentions that hardware units grew. Not clear at all what that meant.
3) Revenue for Software Sales also surpass expectations.
$1.67 billion. Most optimistic I believe was for $1.64 billion.
1) Massive drop of around 34% in accessories, Eric Savitz points out due to bad comparisons with Microsoft Kinect.
2) Hardware Sales down 9%. Eric Savitz said that the price cutting is why this is down. But, sales is sales...not revenue...so I am really confused here.
Ok..Those are the take-a-ways that I see.
Best Buy isn't an innovator like GameStop in the sense that they just get into Preowned while GameStop is doing digital PC dnloads, Gaming Tablets, streaming.
It is ridiculously difficult to be a big box Jack of all trades business and compete against specialty retailers and Amazon online only, no sales tax retailers.
I see some Best Buy store layouts that are deeply depressing where Video Games are tucked in the back corner or they are hard to spot being surrounded by smartphones, cameras, and tablets.
I don't get a fuzzy feeling in Best Buy stores for gaming anymore. The management is absolutely out of touch with their customers.
I went by a gamestop store this past weekend and they had a big sign outside saying buy 2 games and get 1 game free which should make some sales go up for the holidays. And its looking like bestbuy is going to be another circuit city going down the drain and into bankrupty simple because everything in their stores are way over priced and they will in the end put themselfs out of business. Which makes gamestop very appealing at this point of the game. strong buy here on the down days.
Ironically, I am willing to bet anyone that Best Buy will go out of business long before GME. Big box electronics stores are a dying breed (i.e. Circuit City)as AMZN and others take away their market share. BBY can't compete with Costco or Walmart on TVS and computers and forget about selling videogames. Bad video sales for BBY is a good thing for GME, which continues to steal market share.
I would think so. I've been in 6 stores in the local Pittsburgh market. Each employee I'm asking is talking about how robust the season has been so far. They told me they were getting "slammed" with business for 5-6 hrs straight over the weekends. "Much better than last year" I was told repeatedly. Side note - they also seemed well staffed yet, not overstaffed. In comparison, you could see that BBY was putting a major squeeze on payroll and staffing in order to curb their upcoming loss.
It means the shorts have about another month or two to get out. This, along with 4th quarter earnings is going to end the "next Blockbuster" nonsense once and for all. Add in 60 percent digital growth and you have the most undervalued stock in the S&P and the most shorted by percentage of float -- a deadly combination for the shorts. Once it hits 27 or 28, the covering will start and should push this stock over 30 in the blink of an eye. Good luck to all longs.