Forgive me, drop in SSS, not a miss as in EPS, which is also a bit suspect IMO, as I believe the only way to hit that number is with cost cutting and buybacks reducing the float, neither of which can go on forever, unless of course they go private, which certainly could happen.
What were the NPD results? I'm sure they were terrible. GME probably did at least twice as good as the NPD results which I'm sure will speak to their continued market share increase.
Making the EPS probably also had to do with increased exposure to the ipad/phone expansion plans. No only are the margins in line with the rest of their pre-owned strategy but the dollars are huge per transaction. It takes a lot of video game trade ins to equal the profit of selling one refurbed ipad.
Diablo III will be coming out on 5/15 which should prove to be a powerful title for the PC user. If it does anything along the lines of what Everquest did and WoW, it could become a catalyst to sustain topline sales in Q2 and their introduction into the micro-transactions for that game.
I'm glad to see them pre-announce so that the run up and sell off will be more leveled off. I do believe that they will have a strong back end of the year. If they can maintain Q2,the year should pan out well. Like I've said before, think what you will about WII U, and the other gaming formats. Christmas requires gifts under the tree, period. Those gifts have been and will remain being the latest in electronics. WII U will be sold out, hard to find and will have it's space on the news etc. as the "must have" gift.
Don't believe the hype about new systems and not being able to play used etc. Bunch of balony! The industry is too intertwined to alienate a customer, format or retailer. GME (like it or not) is too strong of a voice to be ignored. They've been in talks with hardware makers since 1987. They are easily as powerful in the video game space as Nin, Sony, MS etc.
I remain hopeful for 2012. Buyout or some news to shake the shorts out of the trees would be welcomed!