Gamestop sales hit $5.3 billion in 2006
A report on Next Generation lays out Gamestop's financial performance for the fiscal year 2006. Needless to say, the world of game retail is as lucrative as ever, even if Gamestop has been making every effort to diminish it in size for consumers. Full-year sales experienced a surge of 72%, from $3.1 billion to $5.3 billion. Out of that, annual net earnings for the year, ending February 3, rose to an impressive $158.3 million, while operating income went up to $334 million.Furthermore, Gamestop has expressed plans to open between 500 and 550 more stores worldwide. The group is counting on a strong first quarter in 2007, powered by the likes God of War II, the Pokémon franchise and several Xbox 360 titles. With so much economic momentum, don't expect Gamestop to roll over and change their questionable pre-owned game prices or their definition of "new" anytime soon.
Reader Comments (Page 1 of 2)
dork @ Mar 27th 2007 1:22PM
when you guys buy a pair of shoes from like foot locker or something, do you cry and complain because the box has been opened and other peoples nasty feet have been in them? Do you tell them the shoes arent new? no probably not, because you just like to hate on gamestop
JodyAnthony @ Mar 27th 2007 1:31PM
I buy my shoes on the internet.
polly @ Mar 27th 2007 1:32PM
Do you have to try new games on to see if they fit?
They clearly cannot afford anti-theft devices or cardboard placeholders.
dork @ Mar 27th 2007 1:36PM
whats an anti theft device going to do? alert us that a game got stolen? We cant tackle people, nor lay a hand on anyone thats going to steal something. We dont have the rights. No one tests out the games. Half of the games that come out are to stupid to play anyway.
You buy shoes on the internet with your moms credit card probably.
You geeks need to settle down, its SHRINK WRAP, get over it. Next time one of you lardos needs to buy some shoes, just remember that the box has been opened before.
Shmil @ Mar 27th 2007 1:37PM
wow what a poor analogy, i guess a better one could've been when you buy dvds...wait no that won't work those stay in their cases, same with CDs i guess there's no good analogy because its a bad policy
Evan @ Mar 27th 2007 1:37PM
@JodyAnthony "I buy my shoes on the internet."
I guess that's one way to avoid human contact.
required @ Mar 27th 2007 1:41PM
Congratulations dork, the Wrong Analogy award goes to you!
Roger Rees @ Mar 27th 2007 1:43PM
The real question is: If you're buying shoes on the internet, do you really need them? It's obvious you're not leaving the house.
Dolla Dolla @ Mar 27th 2007 1:43PM
I think a Gamestop employee invaded this thread ...
Vader582 @ Mar 27th 2007 1:45PM
@dork: What a foolish analogy. Shoes, like cars etc, are some of those items that need to be "test-driven" by the buyer before purchase. I don't want some greasy pimple-ridden brat unwrapping a game, playing it, deciding it's too hard, returning it to the GS/EB in which he/she works, only to have them try to sell it to me at full price, when they know damn well they played the effin' game. Fine, you unwrapped it, I can deal with that...at a lower price. I should not have to finance your rental/borrowing of games.
Jack of No Trades @ Mar 27th 2007 1:49PM
I hate them
Erwos @ Mar 27th 2007 1:49PM
I'm part of the problem - just bought the original Kingdom Hearts from them.
Their practices are really starting to annoy me, though. The "we sell open games as new", "we only order enough of a new game to fulfill pre-orders", and "we don't really test our used games" policies have encouraged me to shop there less and less.
Bill @ Mar 27th 2007 1:50PM
Wow, great to see Joystiq upholding that one-sided brand of "journalism" they are best known for.
I don't see how one company merging with another for the greater good of dedicated game stores is basis for villainy, but whatever, Joystiq seems to have their minds made up on how they will continue to bash the most important company in game retail worldwide. Must be nice to pick on such big targets I guess.
So Joystiq, why don't you put your money where your mouth is, and contact the corporate offices, or perhaps start a campaign for others to follow suit, and COMPLAIN about the open box policies.
Maybe actually going to the company who you incessantly complain about and voicing your frustration will get things changed. It would certainly be more productiver than trashing them on a blog they will never read will actually make things better for the consumers in the long run.
People...just like you and I, work for GameStop, and I'm certain they have people who work at corporate offices, who will listen to mass consumer complaints. Realize that GameStop isn't some singular unit that goes around reading blogs and forums for ways to improve the company.
Quit the b.s. fluff posts that trash GameStop, EA, or whatever corporate giant it is that you choose to make mindless fanboys despise globally on a day to day basis, and actually go to these companies and voice the concern. Use newsposts, comment quote, whatever it is you see necessary to actually change something.
The negative journalism is really becoming a turnoff, go out and change something, or at least try to get both sides of the story before you set out for your next smear campaign.
JodyAnthony @ Mar 27th 2007 1:51PM
dude, why are you attacking me, just because I buy my shoes online? i never said anything about gamestop or anything. and as for my mother I dont see how I can use her credit card if I dont speak to anyone in my family after being abused by them for 15 years and then kicked out of the house and left for dead.
Intentless @ Mar 27th 2007 1:51PM
Well, I guess its a little different with games... First. They arn't being "tried" on by others it doesn't work that way. With games you are buying electronics and the general rule for electronics is if it is an open package you get a discount on it. Its opened its not untouched... It may be weird but thats the mentality. Used is opened potentially scratched a little. New is untouched mint some people are anal about their disks and don't like the idea of buying used for the point of making sure no damage comes to it. Gamestop is taking that risk of giving us tarnished product and scratches are a serious issue I don't like that idea that the disk I am being handed has been handled by someone else... I know many people are like that...
JodyAnthony @ Mar 27th 2007 1:54PM
and really, WIF UR MOMZ CRAEDIOT CRAD LOLZ!@! is the best you could come up with?
Jack of No Trades @ Mar 27th 2007 1:57PM
For those picking on Jody? You all can get shot!
Ken @ Mar 27th 2007 2:01PM
I buy my shoes on the internet too, because they don't sell my size in stores anymore.
"You know what they say about guys with big feet right...???!"
"No... what?"
"Uh... Damn you got some big feet!"
JodyAnthony @ Mar 27th 2007 2:05PM
I buy my shoes online because I can find more styles in my size, as well as the fact that they are cheaper, and as someone that is actually working for a living and trying to start a family of my own with my wife, while putting myself through college because I didn't have mommy and daddy to pay for it for me, I like to save money on pointless things like games and shoes and use the money for things that actually make a difference.
Jonathan Tran @ Mar 27th 2007 2:07PM
soooo... is GS going to raise employee salaries 72% also?
hahahaha... ouch
cybermike @ Mar 27th 2007 2:07PM
Made a nice profit from my gamestop stock.. I had to sell couldn't risk it going down the next day
JodyAnthony @ Mar 27th 2007 2:14PM
so, quick question for everyone:
What's worse? The people that poke fun at a faceless corporation on a stupid video game blog, or the morons that defend the faceless corporation for absolutely no reason other than to try to look like they are better than everyone else on the aforementioned stupid video game blog?
Yes, we are all proud of you, Dork. You are better than all of us people that want what we are paying for and would prefer to save a few bucks on a previously opened item rather than purchase the opened item as 'new' not knowing what the item has been through before we purchase it. But let me guess, wanting to save a few dollars on a video game is pointless to you because you make a six figure salary right? I'm sure thats your next plan of attack, Dork, because thats what people like you always revert to on the nameless, faceless internet. You are scum and its people like you that have to be the big man on the internet that make me glad I am who I am, a poor dumb bastard trying to save a few dollars. Go to hell.
John @ Mar 27th 2007 2:19PM
Bill said: "I don't see how one company merging with another for the greater good of dedicated game stores is basis for villainy..."
Most laughable quote yet!!! lol! The greater good!? The bigger they get the more BS "store policies" they'll try to pile on us.
A monopoly serves no one, except the monopoly.
GameCrazy, BB, CC, Wal-Mart, Target...anywhere but EB/GS FTW! :D
Jack of No Trades @ Mar 27th 2007 2:19PM
I got something to say to Dork!
See, there's three kinds of people: dicks, pussies, and assholes. Pussies think everyone can get along, and dicks just want to fuck all the time without thinking it through. But then you got your assholes, Chuck. And all the assholes want us to shit all over everything! So, pussies may get mad at dicks once in a while, because pussies get fucked by dicks. But dicks also fuck assholes, Chuck. And if they didn't fuck the assholes, you know what you'd get? You'd get your dick and your pussy all covered in shit!
Dork, your a asshole.
Arno @ Mar 27th 2007 2:21PM
I'm actually sorry to say that I've contributed to those sales. No more. Die GameStop/EB.
JodyAnthony @ Mar 27th 2007 2:23PM
I had no problem with purchasing a new game from gamestop or eb and having them give me a previously opened one, but I am going to start bitching and whining about it whenever I can now out of spite for people like Dork.
JodyAnthony @ Mar 27th 2007 2:24PM
thanks for the defense jack
also, EARTH
Jerk Face @ Mar 27th 2007 2:26PM
God I hate Gamestop. They are the Evil F*cking Empire!
dork @ Mar 27th 2007 2:26PM
hey guys check this out
fresh or unused: thats the definition of new according to dictionary.com nowhere does it say "still in shrinkwrap"
haywood jablomey @ Mar 27th 2007 2:27PM
Jack wrote: "For those picking on Jody? You all can get shot!"
Jack and Jody sittin' in a tree...
_ _ _ _ i n g.
Mrak @ Mar 27th 2007 2:29PM
I hereby promise to never buy another game from Gamestop/Ebgames ever again. Who will join me?
john @ Mar 27th 2007 2:30PM
I hope you guys realize that most retail stores have shrink wrap guns in the back. They can easily re-shrink wrap anything they want. I know employees who have taken games home to play and brought them back and re-wrapped them to be sold. Just because something is shrink wrapped doesn't mean it hasn't been fondled.
Sometimes customers will try to pull the same trick. They'll buy a game and play it (quickly), then rewrap it and take it back.
Jack of No Trades @ Mar 27th 2007 2:31PM
Jack and Jody sittin' in a tree...
g a m i n g.
JodyAnthony @ Mar 27th 2007 2:33PM
nothing like a LOLZ GHEY joke to let you know you're dealing with a mature individual.
haywood jablomey @ Mar 27th 2007 2:33PM
Nope, not enough letters. Try again.
polly @ Mar 27th 2007 2:33PM
dork,
Don't you have a preorder you should be trying to push on someone?
Jack of No Trades @ Mar 27th 2007 2:36PM
haywood jablomey and nobody sittin in a tree....
j a c k i n g ..........off
haywood jablomey @ Mar 27th 2007 2:38PM
Oh man! Ya got me!! Burn!!!
You're just too clever.
JodyAnthony @ Mar 27th 2007 2:39PM
I like the fact that I'm supposed to be offended by someone whos idea of humor is calling himself 'haywood jablomey' on the internet.
Shmil @ Mar 27th 2007 2:41PM
FIRE!
Ludwig Kietzmann @ Mar 27th 2007 2:41PM
Wow, Bill, for someone so concerned with the concept of "journalism," you seem to misunderstand what it actually entails. It's not our job to "fight" corporations, it's our job to inform consumers and readers about the happenings within the games industry.
Joystiq is also a platform for commenters to read and share opinions. I think calling this a "smear campaign" is being overly dramatic, not to mention evasive of the issue at hand. In order to get "both sides of the story," are we expecting Gamestop to deny the fact that we think their pre-order prices are high? Are they going to unravel our previous article on the events reported and personally experienced by one of our bloggers? "Journalism" does not mean we have to write a story Gamestop agrees or signs off on.
If you want to defend Gamestop's policies, perhaps you should spend less time attacking us and more time, I don't know, defending Gamestop?
JodyAnthony @ Mar 27th 2007 2:42PM
"You're just too clever."
This ill-fated attempt at sarcasm brought to you by 'haywood jablomey', writer of such classics as "Jack and Jody sittin' in a tree... _ _ _ _ i n g. "
You know, I thought the 'YOUR MOMS CREDIT CARD!!' was lame, but you really raised the bar to quite dizzying heights.
Dan @ Mar 27th 2007 2:45PM
Um.. 2.8% net earnings (~6.3% ops margin) really isn't THAT impressive. I mean, yes, it's showing a profit - but it's unlikely that that's even covering the opportunity cost associated with the capital they're employing.
I know we love pointing to the big players and talking about how exploitative they are... But while 158.3 million in earningS sounds quite impressive, it really isn't for a 5.3 billion dollar company.
BloodyDuck @ Mar 27th 2007 2:47PM
This is a bit misleading. Sales are up enormously because of the effect of their merger (the "2,000" eb games stores that were integrated), not because of organic growth... I'm curious to see how that breaks down.
-Geoff
http://www.alinktothefuture.com
haywood jablomey @ Mar 27th 2007 2:51PM
Jody's buttons: push. push. push.
Jack's buttons: push. push. push.
Easy as pie.
JodyAnthony @ Mar 27th 2007 2:53PM
maybe if you were actually getting to me, that would be true. All you're actually doing is helping me pass the time at work.
Jack of No Trades @ Mar 27th 2007 2:55PM
haywood jablomey
Refer back to #24.
I know which one you are.
Scumdog @ Mar 27th 2007 3:03PM
Here's how it works:
If we put up security gates and order games with security tags in them for all 5000 stores it will cost alot. That will get passed down to you, the consumer.
If we put out mock-up boxes it'll will mean every time a game sells out we will have to pull the mock box and store it until more come in. Belive when I say this would be very difficult to keep track of. Most customers don't bring up the box but ask for the game at the counter. This can cause problems when we sell the last copy to the guy at the front of the line while the guy at the back of the line stands there holding a fake box.
Having a gutted box lets you know that there is still a copy of the game in the store as long as you have the box in your hand. If the box or disk are damaged at all, or we can't get the easy-to-peel-off stickers off the box for you we will gladly give you a 10% shop worn disount for the game.
Try getting to know the people at your local EB/Gamestop...we are people and most likely gamers like you and are more than willing to help make you happy for shopping with us.
Admiral @ Mar 27th 2007 3:18PM
I wear shoes made from duct tape. That ensures that I'm the first and last person to wear them.
And I think the issues are many, not just the absence of shrink wrap. If a store refuses to give refunds on opened games, then it should sell you an unopened package. If other stores will happily sell you a sealed game for the SAME PRICE, why would you choose the store that gives you the open box?
And your shoe analogy is stupid.
Hikaru @ Mar 27th 2007 3:19PM
Err, Factory shrink-wrap is FOLDED and heat gun shrink-wrap is BURNED, very easy to tell them apart ( I'm talking about games only) You just have to look carefully, John.