Despite reporting its first ever non-record holiday in January, GameStop today reported record first quarter sales to the tune of over $2 billion.
Total sales are up 5.1 percent from 2009’s first quarter to $2.08 billion due to a 13.3 percent software sales increase.
GameStop attributes the uptick to strong sales of popular franchises’ newest sequels Battlefield Bad Company 2, BioShock 2, Final Fantasy XIII, God of War III and Nintendo’s powerhouses duo Pokemon HeartGold and SoulSilver.
God of War III, a strong seller for GameStop in its first quarter
Daniel DeMatteo, Chief Executive of GameStop said strong sales at brick and mortal locations is providing necessary capital to the company needed to expand to digital ventures.
“I am pleased that our earnings have achieved the high end of guidance and total company sales have exceeded $2 billion for the first time in a non-holiday quarter. By maintaining a sharp focus on our customer needs and overall business execution, our strong brick and mortar business continues to provide the capital needed to invest in new stores as well as execute our strategic plan to incorporate digital gaming into our global operations.”
GameStop recently began internal promotion for the browser-based title Legends of Zork, a game distributed by Activision and one the company used to test the waters of digital gaming. According to DeMatteo, it work out swimmingly.
Is GameStop ready to embrace the digital revolution?
“The in-store Legends of Zork test proved highly successful in economically acquiring and converting our customers to browser game players. Additionally, at the end of this month, GameStop will be marketing and selling downloadable content in a group of test stores. Of equal importance, our new customer loyalty program will launch in select markets. Altogether, we continue to deliver a superior shopping experience and are introducing our customers to the digital options for gaming,” he said through the statement.
What’s more, the tried, tested, and now reportedly proven trifecta buy-sell-trade has worked well for the company. Paul Raines, Chief Operating Officer at GameStop said store associates have done a great job promoting new releases and putting the aforesaid threesome to great use.
“Our store associates did an outstanding job of executing our ‘Go Big’ marketing campaigns to promote hot new titles. Their effectiveness can be measured by the significant day one, week one and overall market share GameStop captured of this quarter’s new releases. Our unique buy-sell-trade model continues to provide a strong value proposition for new game buyers.”
Many analysts believe the videogame industry is headed towards a more significant level of digitization, bringing about a time where traditional brick and mortar retailers will be affected by the sale games through digital methods. If GameStop’s DeMatteo is to believed, the company is ready for that change. How the company will move ahead in the digital age remains to be seen.
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