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GameStop Corp. Message Board

  • andrewsoc andrewsoc Feb 10, 2012 9:41 AM Flag

    Can someone explain the drop?

    I honestly don't know what's going on with this stock.... other than I should have sold a few days ago and re-bought today ;)

    If anyone can explain the drops today and yesterday I'd appreciate it. Don't know much about the shorts.


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    • MS is actually changing their points system to dollars this year I have heard recently and yes, it is currently quite annoying but it still works and if you are using the system, you will eventually use the points anyway.

      One last question on the GME DLC. What is their markup? I have to assume they are buying it "wholesale" and making something from it when selling it, but I just can't imagine it can be that much. Any idea?

    • Fair enough. Its never wise to generalize a demographic, but I still think gamers who spend hours leveling up will opt for the reward of game stop points.

      However, you need a credit card to buy DLC and you have to be 18 to use a credit card, which would eliminate a key demographic to gaming. Or you need to purchase xbox points and it is to my understanding that they have purposely miss priced things on xbox live so you always have a small balance remaining. You can also use trade in credit for DLC. This article also shows triple digit growth in digital, 3Q yoy, at GME

      Look 6 months ago I don't think anyone thought GME could sell DLC. They are now. Having worked in retail once in my life I know how successful up selling can be. GME is notorious at this aspect. While you are purchasing the game they will simply ask if you want to buy the DLC. So before you even get home you have bought the DLC. Did ATVI give any insight into how many COD elite DLCs GME sold? I know early on they sold a ton of them.

    • Thanks, but I don't think I missed your overall point, just asking about the specifics of buying the DLC. And BTW, I disagree with some of what you explained since I am a Power Rewards member and a 44 year old CPA. I actually enjoy getting the mag and that's it. And the rewards are really not great, and MS offers rewards for buying online via the console. Theirs are not much better, but it's something. I also think hardcore gamers would be well connected and tech savvy with high speed connections who would just as soon download from home/console than from GME or the store itself via card purchase. I also don't think they are as compulsive as you state, and also, I think the past several years of economic strife has led to people learning to take advantage of deals, and only the deals while not getting lured into other purchases, which is where compulsion would serve GME and others. Just my thoughts, nothing more.

    • I feel the exact same way as this guy:

      He is missing one important point the "next console effect". Break out a GME 10K and compare sales from 2005 to 2009 and you will get a clear sense of that effect.

      Since October the stock market has been on an absolute tare. We are do for a pullback.

    • Homer you missed my point this is targeted marketing at Power Up Reward members not mass marketing. These members have taken the initiative to sign up for and instances of Pro members pay GME $15 bucks. I would classify these people as hardcore gamers. DLC is basically targeting this demographic. If they have taken the initiative to sign up for the club they will take the initiative to download it off the website. Also members get points which can be used for discounts or merchandise. You get the points when you buy it from GME and not Xbox live. Hardcore gamers are inherently compulsive so they will opt to get the power up points.

    • "Question for you on the last part. Unless GME sells me the DLC at a discount, why would I leave my chair at my house where I can press a couple of buttons and download right from my Xbox?"

      As a partial answer: For people who love gaming, a few possibilities include buying consoles, trading consoles, buying peripherals, trading peripherals, trading games, browsing, and generally being in an environment in which you're surrounded by what you like with like-minded people. You can buy coffee online too, but many people still stop at Starbucks.

    • there is a simple reason that gme is falling. video game sales in Q4 were OK due to the release of 2 monster big hits - Modern Warfare and Battlefield 3 - but without those monster hits, the overall game software market is falling hard. in this next quarter software sales will be down double digits. EA and Activision both lowered their earnings forecasts and sales forecasts for next quarter - and so GME is going to tank.

      i missed by opportunity to sell puts before activision reported. i didnt realize that activision would lower their forecasts so much - i thought a one day spike and then it sells off. big mistake, could have made a quick bundle.

      gme is still going alot lower, but the easiest short sale was a couple days ago at the top of the trading range.

      if only i didnt have a business and could watch the stock market all day, i might catch these things.

      • 1 Reply to mngtscrwdup
      • YAWN. What abject idiocy.

        Software sales jumped 9.9% in the 9 week holiday sales period.


        January saw the release of only one title and that title released too late in the month to be reflected in the NPD report; FINAL FANTASY 13-2.

        Meanwhile, Mass Effect 3 Collectors edition by 1st week of January completely sold out.

        Februaury this coming week sees the release of TEKKEN PRIME, UFC Undisputed 3, Alan Wake for PC, and Twisted Metal.

        We had a dry spell of ZERO SOFTWARE RELEASES in January and we get people freaking out about software sales weakness.

        Give me a break. PS VITA and Launch titles release in these next 2 weeks of Feb. MASS EFFECT 3 releases early March 6th.

        You can't make judgement calls based on overall sales figures. You have to separate the hardware sales weakness from the Skyrocketing software sales strength. Lets see how PS VITA does given analysts and Wall Streeters are expecting abyssmal sales of PS VITA. Anything short of that is a boost long term for Gamestop who is using their trade in program to boost sales of PS VITA.

    • Question for you on the last part. Unless GME sells me the DLC at a discount, why would I leave my chair at my house where I can press a couple of buttons and download right from my Xbox?

    • Thanks for that info.

      Based on the fact it doesn't include digital or used, I can understand why people have their reservations - but are the large number of people reacting to "negative" news even aware of this?

      Sounds like any other analyst to me.

    • Poor NPD results.

28.80-1.180(-3.94%)May 27 4:00 PMEDT