Raptor-chan
06-28-2009, 01:42 PM
GameStop Corp. isn’t letting word that Best Buy Co. is testing the market in used video games keep the Grapevine-based retailer from planning another winning year.
Best Buy announced Tuesday that it is putting kiosks in stores in Dallas and Austin that will let customers trade in a used video game. The kiosk confirms that the game works and then issues a voucher for a Best Buy gift card.
But GameStop, which held its annual shareholders meeting Tuesday in Southlake, said its years of "skin in the game" and customer service give it an edge over such self-service systems. GameStop is the world’s biggest video and computer game retailer, with nearly $9 billion in sales last year.
"GameStop understands that trading in used games and consoles is a highly-assisted activity," the company said. "We are very confident in our business model that allows our expert associates to help consumers trade in product, a fact not addressed with a self-serve process."
In fiscal 2008, which ended Jan. 31, GameStop earned $398 million, up 38.2 percent from the previous year.
Stores open at least a year saw sales rise 12.3 percent on the strength of the popularity of Nintendo’s Wii game console and game titles such as Grand Theft Auto IV and Guitar Hero World Tour. GameStop plans to open about 400 stores in fiscal 2010.
Last year, GameStop bought chains in New Zealand and Norway, and also entered France with the purchase of Micromania, a 332-store chain.
It now operates 6,244 stores in 17 countries and plans to continue opening stores in Canada and Australia as well as Europe.
CEO Daniel DeMatteo, in his letter to shareholders, said the company racked up "the eighth consecutive year of earnings growth, and in last year’s economic circumstances that was no small feat." He said the company’s stores "continue to generate significant amount of cash. This has enabled us to continue expanding our global footprint without having to issue debt."
For example, he wrote, GameStop paid off the $580 million deal for Micromania in less than three months.
Best Buy’s used-game pilot in Dallas and Austin comes as video game sales have slowed, dropping 23 percent in May compared with a year ago, according to research firm NPD Group. For the year’s first five months, sales fell 7 percent.
Best Buy expanded video game trade-ins at its Future Shop chain in Canada last year after a test in Calgary. In Canada, the company operates about 130 Future Shops and 61 Best Buys. It operates more than 1,000 stores in the U.S.
Seattle-based Amazon.com, the world’s largest Internet retailer, entered the market in March by letting customers trade old games for gift cards.
The report includes material from Bloomberg News.
JOHN AUSTIN, 817-390-7874
Courtesy: Kotaku, Dallas/Fort Worth Star-Telegram
Best Buy announced Tuesday that it is putting kiosks in stores in Dallas and Austin that will let customers trade in a used video game. The kiosk confirms that the game works and then issues a voucher for a Best Buy gift card.
But GameStop, which held its annual shareholders meeting Tuesday in Southlake, said its years of "skin in the game" and customer service give it an edge over such self-service systems. GameStop is the world’s biggest video and computer game retailer, with nearly $9 billion in sales last year.
"GameStop understands that trading in used games and consoles is a highly-assisted activity," the company said. "We are very confident in our business model that allows our expert associates to help consumers trade in product, a fact not addressed with a self-serve process."
In fiscal 2008, which ended Jan. 31, GameStop earned $398 million, up 38.2 percent from the previous year.
Stores open at least a year saw sales rise 12.3 percent on the strength of the popularity of Nintendo’s Wii game console and game titles such as Grand Theft Auto IV and Guitar Hero World Tour. GameStop plans to open about 400 stores in fiscal 2010.
Last year, GameStop bought chains in New Zealand and Norway, and also entered France with the purchase of Micromania, a 332-store chain.
It now operates 6,244 stores in 17 countries and plans to continue opening stores in Canada and Australia as well as Europe.
CEO Daniel DeMatteo, in his letter to shareholders, said the company racked up "the eighth consecutive year of earnings growth, and in last year’s economic circumstances that was no small feat." He said the company’s stores "continue to generate significant amount of cash. This has enabled us to continue expanding our global footprint without having to issue debt."
For example, he wrote, GameStop paid off the $580 million deal for Micromania in less than three months.
Best Buy’s used-game pilot in Dallas and Austin comes as video game sales have slowed, dropping 23 percent in May compared with a year ago, according to research firm NPD Group. For the year’s first five months, sales fell 7 percent.
Best Buy expanded video game trade-ins at its Future Shop chain in Canada last year after a test in Calgary. In Canada, the company operates about 130 Future Shops and 61 Best Buys. It operates more than 1,000 stores in the U.S.
Seattle-based Amazon.com, the world’s largest Internet retailer, entered the market in March by letting customers trade old games for gift cards.
The report includes material from Bloomberg News.
JOHN AUSTIN, 817-390-7874
Courtesy: Kotaku, Dallas/Fort Worth Star-Telegram