Big Drop In Video Game Sales At GameStop (GME)
Due to the effects of the recession and strong prior year comparisons, the video game industry experienced a sharp decline in consumer spending during the quarter.
- GameStop CEO Daniel DeMatteo
GameStop (GME), the world’s largest video game retailer with more than 6,000 stores worldwide, reported second quarter earnings this morning. Sales at GameStop had held up rather well until the quarter just ended August 1, 2009 in which same store sales dropped 14.1%.
One thing I noticed was that while video game hardware, software and other sales all declined, used video game product sales increased by 19%. Consumers appear to be shopping for value and very price conscious.
Disclosure: Top Gun has no position in GameStop (GME) shares.
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