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Gamestop places 16 in Barron's top companies list

Based on "cash-flow returns on investment," Barron's magazine (subscription required) has placed Gamestop at 16 in their list of the top 500 U.S. and Canadian companies. The infamous game retailer received an 'A' for increasing sales growth and an 'A' for 52-week stock growth, ultimately earning a grade of 3.5 out of 4.0.

The hype surrounding the console launches was listed as a contributing factor -- and may we also add their massive profit margin with used game sales. Other games industry business Microsoft made the list at 21 with a 3.25 grade, earning a 'B' in stock growth and a 'C' for slowing growth. The period of preparedness prior to the Vista launch was cited as reasons the company did not rank higher.

Barron's also recently listed Nintendo's Satoru Iwata among the world's best CEOs.

Tell Gamestop 'no reserves' with this geek chic shirt

Now you can advise Gamestop to just not ask without ever uttering a word. Perennial webcomic entrant Steve Napierski of Dueling Analogs has created this t-shirt, distributed care of Ze Stuff, for all those who like to rag on the biggest video game-centric brick and mortar retailer.

Of course, showing distaste for Gamestop is the cool thing to do these days, so why not let everyone know what side you're on against in the Retail Wars of 2015?

Rumor: Microsoft will publish bargain-priced US Project Sylpheed

Never trust retail listings as concrete evidence of future releases, but GameStop has an interesting page up on its website for Square Enix's Project Sylpheed, here spelled Silpheed. What makes the listing all the more bizarre is its bargain price of $39.99 and its publisher, Microsoft Game Studio (which, oddly enough, is also listed as the developer).

Of course, the actual developer, Game Arts (Grandia, Lunar series), has used many publishers -- Grandia II, for example, saw Square Enix publishing the title in Japan and Ubisoft publishing in US and Europe. We don't feel this has anything to do with Microsoft trying to butter up Square Enix while Final Fantasy XIII's exclusivity is supposedly in discussion, but that Square Enix had no interest in distributing the title outside of Japan. But, if the $40 price is accurate, how much faith does Microsoft have that US audiences will embrace the game? There's so much about the listing that feels shaky.

No announcements have been been made by Microsoft, Game Arts or Square Enix. According to the listing, Project Sylpheed will be released July 11.

[Via Xbox 360 Fanboy]

Pachter gets one right; GameStop stock worth buying

When video game analysts are mentioned, most of us who closely follow game news think of Michael Pachter. Like any analyst, their predictions aren't perfect. In fact, many abide by the 51% rule; if you get at least 51% of your predictions right, you're a good analyst.

Back in November, Pachter predicted GameStop (GME) to ride a wave of consumer spending on video games. GameStop has released some information proving that buy a good one. GameStop has increased its already strong revenue outlook by $50 million and its Q4 earnings per share from $1.53-$1.59 to $1.58-$1.60.

On top of other interesting sales promotions, GameStop certainly enjoyed the console launches and top-selling games like Gears of War immensely. GameStop is still looking like a strong buy with the strong Xbox 360, PS3 and Wii lineups for 2007 along with continuing PS2 support (though not everyone is in consensus on this). Since we're going to make some money off this one, we're going to forgive Pachter for some of his missed predictions.

Respect the Ratings: GameStop unveils new campaign

In an effort to promote ratings awareness (and garner a little PR while they're at it), GameStop has launched a new campaign, Respect the Ratings, aimed at helping parents understand more of what their children are playing.

The campaign's website is a meager four pages but is designed with the time-strapped parent in mind. Featured on the website are ratings explanation, genre classifications, and even a glossary of popular phrases so that parents can "crack the code" of the gaming language. We're impressed by the selection of terms, including troll, patch, and lamer. However, some more spelling variants would've been amusing: while they do have both "owned" and "pwned," why not include pwnt, pwnz, and 0wnz0rd? And Leetspeak is all well and good, but the deduction-challenged adult might not connect the term with 1337.

The Resources page offers a comprehensive list of links to peruse, including many gaming sites (CVG, GameSpot, GameRankings), safety-oriented sites, and main ESRB page. We'd like to see a news tab that gives a personal feeling to the site and coerces return visits. We're not expecting full-blown coverage (leave that to us), but maybe a weekly post that gives a brief highlight on the news to keep parents up to date on some of the news that the gaming kids love to use.

GameStop has more Wiis, PS3s for Black Friday

During an investor conference call, GameStop has confirmed that both Nintendo and Sony have sent the retailer new shipments of Wii and PlayStation 3 consoles just in time Black Friday, which is only a few days away. Even better, GameStop has also expressed confidence in a weekly shipment of each console, although did not provide specifics on how large any of the shipments would be.

Other information from the call, as reported by GameSpot:
  • Unsurprisingly, Resistance: Fall of Man and Legend of Zelda: Twilight Princess were big sellers for their respective consoles. Other standout hits include Madden NFL 2007 for the PS3 and Red Steel for the Wii.
  • According to their sales, the game-to-console ratio for the Wii was 3, while the PS3 was about 1.5. GameStop attributed the disparity to the prolific eBay PS3 auctions and said it should grow once the consoles get in the hands of "real gamers."
A constant stream of consoles is a good sign of trying to keep up momentum, but we'd be happier if executives could pin down a minimum number of consoles per shipment.

PS3 launch shipments restricted to top 5 retailers?

According to a memo obtained by GameDaily BIZ from smaller video game chain Rhino Video Games, Sony has "decided to limit the supply of hardware (systems and accessories) to its top five volume retailers (Wal-Mart, Target, etc.)" on the November 17 launch day.

However, we know of at least seven major retailers receiving PlayStation 3 units on launch day. In addition to Target and Wal-Mart, we know GameStop / EB Games, Best Buy, Circuit City, Sears and Toys 'R' Us are having PS3s on launch day. We know supplies will be very limited and GameStop won't be fulfilling all of its PS3 pre-orders (already conservative figures).

That smaller retail chains will not have PS3s on launch day is not that surprising, but only the "top five retailers" is wrong and makes the memo a bit suspect. Rhino Video Games will not be getting PS3s on launch day -- a fact reaffirmed on its website -- the rest is not true. Rest assured, there will be PS3s for sale at all retailers by the end of 2007. We hope.

GameStop cannot fill PS3 preorders

Retail chain GameStop has confirmed to news outlet GameSpot that, despite playing it cool with PlayStation 3 pre-orders (approximately 8-12 units promised per store), the retail chain cannot fulfill all the initial preorders after receiving a launch allocation number from Sony. That's right, folks: even though you've already given the store $100 to reserve the system, you may not get one at launch.

GameStop has done the smart move of asking its employees to wait on their purchases until the second shipment. A representative who spoke to GameSpot is "anticipating having systems to cover reservations before Christmas." Those who have a preorder through GameStop should be contacted by phone and given a status update. The unfortunate souls who have a PS3 preorder but will not receive one at launch will be given a free used game or DVD valued less than $20 ... whenever they finally get their PS3.

After having promised $100 to the company, it's unlikely most customers will be willing to spend $600 elsewhere -- or wait in line, for that matter, when they already did so a month prior. It's too soon to tell who's fault this is, the retail outlet or Sony itself. We'll know soon enough just how many units will be sold on launch day.

What happens to those who put their PS3 on eBay and now get it delayed? Will they be faulted for GameStop's actions?

See Also:
Japan to get fewer PS3 launch units due to part problems
Math fun with the PS3 and GameStop (PS3 Fanboy)

[Thanks, DawgOnU and everyone who tipped us off!]

GameStop unveils $700 Wii-mega bundle

Beginning Thursday evening (and lasting maybe a few minutes), hopeful gamers will be able to go on EB Games / GameStop's online page and pre-order Nintendo Wii. Akin to the Xbox 360 pre-orders last year, GameStop will not let you order the Wii outside of a bundle package that totals $694.88, or approximately 280% the price of the Wii console alone. The bundle, which we're dubbing Wii-mega, includes:
  • The Wii console ... $249.99
  • 1GB Wii-emblazoned SD card ... $59.99
  • Additional Wiimote ... $39.99
  • Six Wii titles: Twilight Princess, Trauma Center, Red Steel, Marvel Ultimate Alliance, Super Monkey Ball Banana Blitz, and Madden NFL 2007 ... 6 x $49.99 = $299.94
  • 12-month Product Replacement Plan
  • Game Informer Gift Subscription
Assuming "gift" means complimentary (i.e. free), the 12-month product replacement plan values $44.97. Savvy shoppers can find 1GB SD cards for a little over $30, and those savings could be used to buy a nunchuk for the second Wiimote. And while the games listed do span a wide demographic of gamers, we can't assume all consumers are going to want to invest in every game.

The fine print is also amusing, with the safety words "contents subject to change" and "ordering this bundle does not guarantee shipment at launch." After $700, you are not guaranteed the listed contents nor a launch window assurance. We're sure these bundles will sell out, even if the store shelves don't. Our advice: if you simply have to spend $700 on Nintendo, buy the pieces a la carte on launch day, and then give the rest to Child's Play.

[Thanks Sam and everyone else who sent this in!]

GameStop sued by Louisiana store managers

Six Louisiana GameStop managers have filed a collective law suit against the company, declaring that they have been wrongfully denied overtime pay. The problem derives from the Fair Labor Standards Act, which states that those persons "employed in a bona fide executive, administrative, or professional capacity" do not receive overtime pay.

The GameStop employees, whose suit stems from having to work up to 50-60 hours some weeks without overtime pay, claim that they have no manegerial abilities. According to those involved in the suit, GameStop employees are not allowed to:
  • Determine how much to pay the store staff
  • Make any decisions regarding price
  • Make any decisions regarding what and how much to stock
  • Decide the location of items on shelves
  • Control the hiring and firing of their own employees (such a decision was made by district managers)
It does seem like "manager" is merely a title. As GameSpot (note the swapped 'p' and 't') reports, a similar suit is ongoing in New York, where Electronics Boutique employees (pre-GameStop merger) in 2004 filed suit about unpaid overtime and denied minimum wage. GameStop is asking that the Louisiana case be dropped due to the similarity of both suits, though the New York case is in the early stages of settlement.

[Thanks, Mole]

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