Companies face pivotal quarters all of the time. This quarter will go down in history as one of those for GME. Management made the decision after a good quarter about 3 months ago to reiterate year over year guidance instead of making an adjustment to the upside. They could be stuck in a hard spot this quarter. If they don't demolish the numbers this time, they will get slaughtered. Even without upward guidance the loud whispers are fierce, speaking of the Switch invigorating struggling retail stores, making it clear and evident what will happen if they don't perform. This quarter will show part of the upcoming future. I'm interested in what store traffic looked like and how much they lost due to digital and relentless competitors in general. Their constant mistakes and missteps will likely come out soon and be focused on or at least be asked to provide color on. This is the time to watch it come back or fall apart, there's no doubt about that. I can't tell you which way it's going to go but this quarter is sure to provide some answers.
That's a sad sad statement that even you can't possibly believe, but you're true to your pumping lol. If it's bundled, and for more, they don't need to buy a game or visit the store(again) if they even visited it in the first place. Have you met this consumer? They have everything at their fingertips including snap, facebook, insta and so much more (mobile games) which GME also missed involvement in somehow, but back to the point. They can find it for $299 "unbundled" and get the games (any game not only specific bundled choices) for possibly less and online, Amazon etc, 20% off Best Buy etc. By bundling and selling for more GME misses the consumer which 1, wants to buy it for $299 and 2, makes sure they don't need to return to the store to buy specific titles which carry a better margin than hardware. Less choices for more $ and knowing that the games will be less or more accessible by purchasing online or downloading digital addons . . . . .All in all an interesting strategy. I guess we'll all see how that "strategy" works out soon enough. Sound the alarm!
Ridiculous, Jedd F. Akes, haha! "People aren´t buying things there ..." Even more ridiculous: Link from "The Street". Of course they are buying, because Switch is available. They provide it without games also - clever strategy. While Switch isn´t available elsewhere, they haven´t got problems to sell bundles for sure. Last earnings they didn´t know how Switch sales would develop and didn´t raise guidance, so share price tanked. This time will be different. They will raise outlook because of the switch. That´s what matters!
Seems our multialias basher continues to fixate on the unimportant issues, such as "margins on hardware". Last quarter gross margin on hardware for GME was 9.8%. By comparison gross margin on new games was 21.8%, used games 48.2%, digital downloads 81.9%, technology brands 71.8% and collectibles 30.7%. The margin on hardware has always been much smaller than overall gross margin. The Switch gets people in the stores to buy higher margin games. Its doing just that, and the bundling is smart as it ensures a higher margin game(s) will be purchased at GME. The bigger picture however continues to show that the fastest growing parts of the company carry the highest gross margins. This bodes well for earnings.
Amazon Is Absolutely 'Doing Great Damage.' Duh, Mr. President, That's Business
Tell us something we don't know.
With GME successfully bundling new games with the Switch, I believe they will significantly beat the $526 million in new game sales last quarter. Combined with growth in technology brands and collectibles, there is a chance they may raise estimates for the rest of this year.
Wait until the ETF's exit, Skippy? Seriously? Retail ETF's buy retail stocks. Period. You failed to mention that TJX traded higher today after earnings. Or that COH, HD, and DKS trade a P/E multiples double and triple GME's 6 P/E. Its too bad that you only have another 8 days to parade your idiocy here. Enjoy.
Who also thinks "The Street" is best contra-indicator on earth? I think when they are bearish it´s a goooooooooood signal to buy!:-)
The only thing that bundling does is ensure that there will definitely not be a sale at a physical store for a better margin, that's it. Margins on the hardware are the worst ever, you can quote me and look that up yourself too. Combined with lack of brick and mortar, physical sales and the popularity of downloading online there's a better chance they have to guide down to even get close.
@does Your Who's Skippy? And exactly Retail ETFs will exit and will not hold this junk Period. My guess is after a miss and revised down guidance no one will possibly want to be near it except more shorts P/E multiples mean nothing in this market when companies miss badly and retail disintegration takes over Only reason this one trades where it is now is because of the HOPE of the Switch When that's proven wrong because of competition they have nothing In terms of physical they can't stop the bleeding which also spreads to trades They have to hope for miraculous growth in collectibles while core business deteriorates beyond recognition and at a faster pace than anticipated Bad timing to be in this one and ETFs will be the last ones out slamming it into the mid teens on their way out All just opinion of course
Gameshopper yesterday told us Switch is EVERYwhere available for better prices. "A quick research" revealed that wasn´t true, if not a lie. Now he´s laughing about 5x4.400 units only available at GME. Laughable !!!
The shorts sure have been kind in borrowing cheap shares and selling them back to GameStop. There is nothing better than returning shares to the treasury at bargain prices. GameStop has clever management indeed. Well done!
Nintendo Switch 32GB Console, Read customer reviews and buy online at Best Buy.
Well Skippy, Your Ryan alias has been warning us about bad GME earnings coming on 8/23 for awhile now. But the earnings are on 8/24. You have been wrong about a new GME low, an earnings warning, and now even the date itself. Have you ever been right?
Gamestop has the largest share still in video games. No doubt about it.
volume high today on the downside. Someone wants to get in cheap. If they knew earnings is bad next week, they would not be exiting like this.
Amazon.com: switch - Consoles / Nintendo Switch: Video Games
Online shopping from a great selection at Video Games Store.
60% of revenue depends on dying core businesses that are losing more market share at a much faster pace than expected, including physical brick and mortar retail which effects trade-ins/Amazon cash and the no answer method to increased digital downloads/bandwidth. None of the future numbers are gauging these factors accurately. Growth of collectibles and other ventures would have to continue at an astronomical rate to make up for the continuing increased losses in the core market. It's simple, if they don't have the answers, it will show even more in the price of the stock. If they do have the answers, they survive as a collectibles store that sells games. CD stores and vinyl stores still exist just not like they did. GME doesn't have the answers and most of the products they sell can be found for less and delivered to the customers door. These are just a few (more) factors that have and will continue to have an impact on future numbers. Things really are different and their plan, even if executed flawlessly, can't fix what's already been broken. Most things point to them being in survival mode for a long time, and with a dwindling stock price combined with throwing money away in the form of a high divi doesn't bode well for their extremely optimistic growth outlook while core businesses get slammed along the way from increased competiton and the extreme move to digital. It's getting ugly out there, not worth the risk IMHO