Market Slams GameStop After Missing Q3 Expectations

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It's kinda weird that GameStop is blaming the fact that it missed its earning expectations on Assassin's Creed: Unity being delayed.

GameStop generated $2.09 billion in revenue during its Q3. That is down 0.7 percent from $2.11 billion during the same period last year. It also is well under Wall Street’s estimate of $2.2 billion. The company also reported earnings per share of 50 cents, which missed analysts’ predictions of 61 cents. The company points to a tough comparison due to a major annual franchise moving into November, but it also claims that most of its internal numbers are looking up.
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It was 90 million dollars off. 2.2 billion versus 2.11 billion.

While Wall Street way overblows things many times, their fears are justified with GameStop. GameStop is a dying business.
 
"Nah, things are good. Which elephant? Oh, the one in the corner marked 'Digital Downloads', yea I wouldn't worry about that elephant," Gamestop said, as they died a little inside.
 
simland said:
"Nah, things are good. Which elephant? Oh, the one in the corner marked 'Digital Downloads', yea I wouldn't worry about that elephant," Gamestop said, as they died a little inside.
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Gamestop has its own digital marketplace, but I'm not surprised that not many either know about it or use it. But I'm sure their margins on digital downloads don't even come close to used game sales.
 
Rizen said:
It was 90 million dollars off. 2.2 billion versus 2.11 billion.

While Wall Street way overblows things many times, their fears are justified with GameStop. GameStop is a dying business.
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I was referring to Q3 2013 vs. 2014.
 
JSClark said:
I was referring to Q3 2013 vs. 2014.
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But that isn't how people look at stuff like this. Which I agree is stupid. in the past year or two, both Apple and Microsoft I believe had quarters where they made the most ever since they started and in both cases wall street expected them to make even more than they did so even they had extremely good quarters they were not at the level people thought they would be so their shares dropped some.

You are going to have the same here, people bought shares and then had expected to make one amount and made less than that. so they now are going to leave since it didn't make them the money they had expected.
 
maybe if they stopped sending so many god damn spam emails and pissing customers off?

traded in xbox 360 system, was enrolled in some power up player BS program of theirs for free. Getting annoying emails. Good thing i used my "throwaway" email account.

Just randomly bitching... but still -- in all my year on the internet, I've never once gotten an email (spam or legit) and thought "hmmm I need to go and buy that".
 
My SIL worked for GameStop for a good number of years. Missing their goals is of their own doing and very ... very weighted system of measurement and expectations.
 
collegeboy69us said:
Just randomly bitching... but still -- in all my year on the internet, I've never once gotten an email (spam or legit) and thought "hmmm I need to go and buy that".
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Newegg, Tiger Direct, and Micro Center make me say that, probably too often...

Stories like this are where the shortcomings of greed are made apparent. I agree that in the face of digital downloads GameStop has challenges to face in the future, but last I knew the majority of their revenue comes from used games/hardware sales. Obviously they are still making a ton of money, even in current market conditions, but it is not enough to satisfy some people that want even more, faster.
 
MrCaffeineX said:
Newegg, Tiger Direct, and Micro Center make me say that, probably too often...

Stories like this are where the shortcomings of greed are made apparent. I agree that in the face of digital downloads GameStop has challenges to face in the future, but last I knew the majority of their revenue comes from used games/hardware sales. Obviously they are still making a ton of money, even in current market conditions, but it is not enough to satisfy some people that want even more, faster.
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Went to Tiger Direct once.....................................................................once.
 
Armenius said:
Gamestop has its own digital marketplace, but I'm not surprised that not many either know about it or use it. But I'm sure their margins on digital downloads don't even come close to used game sales.
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Knowing that industry standard for digital is about 30% and retail is the same it is about a wash. Servers are cheaper than all that rent.
 
MrCaffeineX said:
Newegg, Tiger Direct, and Micro Center make me say that, probably too often...

Stories like this are where the shortcomings of greed are made apparent. I agree that in the face of digital downloads GameStop has challenges to face in the future, but last I knew the majority of their revenue comes from used games/hardware sales. Obviously they are still making a ton of money, even in current market conditions, but it is not enough to satisfy some people that want even more, faster.
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The used business gets them 200% + margin so yeah it floats their boat very well. Problem is that their system on exchanges is getting pretty broken and driving out other customers who get fed up waiting behind swaps that take forever. Personally walked out once swung by 15 minutes later and it was still going on
 
Ironically, Target is getting into the used game sales and i'd rather get in store credit at target then at game stop. Just traded in GTA5 for 360 towards GTA5 for ps4 and received 30$ credit! I hate to say it, but I've always had good console gaming deals at target.
 
viscountalpha said:
Ironically, Target is getting into the used game sales and i'd rather get in store credit at target then at game stop. Just traded in GTA5 for 360 towards GTA5 for ps4 and received 30$ credit! I hate to say it, but I've always had good console gaming deals at target.
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You are not alone. I go to Target for all my gaming needs if I can't find a deal online. They always have want I want.
 
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