The NDP report shows GME’s strong market share. New software sales on NPD for December were down 14%. Holiday new software sales for GME were up 9.9%. GME’s holiday sales were also much better than the percentage decline for hardware reported by NPD. BBY reported weak software and hardware sales showing they are loosing market share to GME.
If you listen to the conference call on Tuesday the management talked how they are gaining market share from competitors and had a lot of data to back this up. Most interesting thing they said was GME did 30 million trade ins of used games in Q1 2011 while their next closest competitor did 200,000. Other takeaways from the conference call: 2. Spawn labs is in the final stages of contract and licensing agreements.
3. GME will host a developers conference for game app builders. If they can start selling game apps it would be huge. I think there is a nice market for a third party distributor for game apps. I have not seen droids app store and I am not that impressed by apples.
GME is growing market share substantially. This will pay dividends when the next console cycle starts.