Wow did you see that price spike they have been trading 52 wk lows and than bam. Reminds me of the dividend announcement.
Quick look at slide presentation they have finally broken apart the digital segments. Digital console growth is stagnant as I have always thought. The sheep don't understand that digital gaming is made up of many categories core pc, casual or social pc, console, and mobile. GME biggest problem would be the emergence of digital console dominance. IT IS NOT HAPPENING. Digital console is the also smallest portion less than 12%.
GME has to expand and become a casual and social publisher. They have laid the grown work with Kongregate and all of the work they do with indie games. NOW LEVERAGE IT!
Good news Mass Effect is selling like crazy, they sold out of all collectors editions. Will do more analysis latter tonight.
I am surprised we were not down today. I think everyone knew the NPD was gonna be crap. I don't think there was a coincidence that earnings announcement was on NPD day even if NPD is released after the market was closed.
NPD as I stated before is flawed. They do not account for used or digital sales. Quick look shows NPD accounts for $1.06 B. Now NPD in some press releases is trying to estimate used and digital and they think thats $550-$600 m. So more than half is unaccounted. Like digital you have to split NPD into categories hardware, software, accessories. Hardware will continue to fall with the announcement of the Wii U because the Wii was this gens market share leader. You have to watch XBOX 360 and PS3 separately. As soon as they announce successor their numbers will fall. This generation also has the longest life in the history of the video game industry. Until Wii U is released hardware will look like crap. However, the only good thing is Christmas NPD reports will look incredible if Wii U is released November 2012.
Software drop is kinda of alarming don't know off hand what was released last year same time. However, 4 of the top 10 were Christmas releases. Which shows the strength in the Christmas release schedule. I have always said the unprecedented Christmas releases would continue to sell very strongly used into Q1. I stand by that.
And I quote "Specialty retailer some of our partners adapting well and establishing substantial new digital revenue streams" The CEO from EA was gushing about GME and referenced them at least 3 times in 40 min presentation.
Why? because GME is beating any estimate for DLC.
He also pointed out the success of the downloadable content (DLC) that was already available for purchase on Mass Effect 3′s launch day. Retail chain GameStop saw a tie ratio of 40 percent of day one customers who purchased a download code for additional content together with the game: “The tie ratio at the register is the highest in their history”, said Riccitiello.
He is also bullish on the wii u.
He also sees continued growth in HD console gaming. The packaged good games have not cratered like many thought and are not declining but shall continue to be a major portion of revenue.
Bottom line: GME bringing DLC into the stores is working better than anyone ever thought. First you have the huge share of COD Elite and now you are hearing the high tie ratio with Mass Effect 3. GME has evolved and is doing digital better than the publishers.