GameStop profits shoot up thanks to next-gen gear

GameStop - Image 1Popular game retailer GameStop has announced that in the aftermath of fiscal year 2006 which ended on May 5, it posted an astounding sales total of US$ 1.279 billion and more than doubled its profits to US$ 24.7 million, which translates roughly to a 111 percent rise.

GameStop credits the first quarter surge to next-generation hardware and software revenues with Nintendo blazing the trail. The company’s executives described the Nintendo Wii and Nintendo DS demand as “overwhelming” while Microsoft Xbox 360 and Sony PlayStation 3 sales remained “strong.”

The retailer cites Pokemon Diamond and Pokemon Pearl as the primary movers and shakers for the extremely popular DS handheld platform, while Microsoft’s Crackdown and Ubisoft‘s GRAW 2 are keeping the Xbox 360 in stride. Sony’s God of War II is still performing well despite the fact that it belongs in the 7-year old PlayStation 2 yard.

The retailer expects to see the PS3 coming on to full force with Ninja Gaiden Sigma and Lair leading the way. Interestingly, GameStop hinted at a price drop for hardware this fiscal cycle though it wasn’t specified which ones. The odds-on bet would be the US$ 600 PS3, as the company mentioned that price shedding did wonders for the Sony PSP.

GameStop concluded the session by saying that the coming of the Wii marks the start of a significant change for the game business. It pits a stop to graphical arms race and hardcore games with market expansion fostered by innovation and customer-friendliness.

Via Gamedaily

GameStop - Image 1Popular game retailer GameStop has announced that in the aftermath of fiscal year 2006 which ended on May 5, it posted an astounding sales total of US$ 1.279 billion and more than doubled its profits to US$ 24.7 million, which translates roughly to a 111 percent rise.

GameStop credits the first quarter surge to next-generation hardware and software revenues with Nintendo blazing the trail. The company’s executives described the Nintendo Wii and Nintendo DS demand as “overwhelming” while Microsoft Xbox 360 and Sony PlayStation 3 sales remained “strong.”

The retailer cites Pokemon Diamond and Pokemon Pearl as the primary movers and shakers for the extremely popular DS handheld platform, while Microsoft’s Crackdown and Ubisoft‘s GRAW 2 are keeping the Xbox 360 in stride. Sony’s God of War II is still performing well despite the fact that it belongs in the 7-year old PlayStation 2 yard.

The retailer expects to see the PS3 coming on to full force with Ninja Gaiden Sigma and Lair leading the way. Interestingly, GameStop hinted at a price drop for hardware this fiscal cycle though it wasn’t specified which ones. The odds-on bet would be the US$ 600 PS3, as the company mentioned that price shedding did wonders for the Sony PSP.

GameStop concluded the session by saying that the coming of the Wii marks the start of a significant change for the game business. It pits a stop to graphical arms race and hardcore games with market expansion fostered by innovation and customer-friendliness.

Via Gamedaily

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