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GameStop rakes in $7.1B in '07

Record-breaking financials marked by dramatic 46 percent profit rise during holiday quarter; megaretailer credits Super Mario Galaxy, Call of Duty 4, Guitar Hero III, Assassin's Creed, and Rock Band.

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Last month, AdWeek magazine revealed that GameStop, the world's biggest specialty retailer of games, had been successfully marketing games via its in-store television network. Today, the Texas-based retailer's annual earnings report revealed it successfully sold plenty of other games as well.

For its 2007 financial year, which ended February 2, 2008, GameStop revenues increased 33 percent to hit a massive $7.1 billion total. After debt retirement costs of $12.6 million, the company's net earnings--aka profit--for the 52-week period were $288.3 million. The retailer is enjoying a year-end cash balance of $857 million despite having had opened 586 stores worldwide during the period.

For the most recent quarter, GameStop reported net earnings of $189.8 million (up 46 percent) on revenue of nearly $2.9 billion (up 24.4 percent). One of the main reasons for the retail chain's successful holiday quarter was last year's bumper crop of top-shelf games. GameStop singled out five in particular as being best-sellers: Super Mario Galaxy, Call of Duty 4, Guitar Hero III, Assassin's Creed, and Rock Band. The company also cited its highly profitable used game business as a key revenue driver.

Console sales were also a big factor in GameStop's banner 2007 fiscal year. "What is particularly noteworthy is that 2007 was a transformative year with hardware sales setting records and the installed base of users reaching an all-time high," declared CEO R. Richard Fontaine in a statement. "Likewise, the expanding demographic profile of the video game player has moved this business into the mainstream of entertainment."

Looking ahead to the current fiscal year, which ends on January 31, 2009, GameStop's guidance is positive. The company predicts revenue growth of between 19 and 21 percent for the year, with sales rising 24 to 25 percent in the first fiscal quarter thanks to the releases of Super Smash Bros. Brawl, Devil May Cry 4, and the forthcoming Grand Theft Auto IV. The company expects to open another 575 to 600 stories during the 52-week reporting period.

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faceman420

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half of that is prolly from the used games they sell.. how u gonna tell me my 2k8 I played twice is only work 25 bux lmfao. no thnx I'll go on amazon n get 50 instead.

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cbmurphy2489

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Has the gaming industry gone nuts or what?? Psych, it's still good!

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aznballer91

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Gaming industry is coming like a storm.

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ghost867

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I swear, everything in the US is going down... expect for gaming. I guess taking yourself out of the world around you is worth more then gas, lol. Hey, what ever works. As long as my under 18 year old ass can get some good games, I'm good.

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ThaSod

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Maybe they can turn all those Starbucks and Krispy Kremes that are closing into Gamestops...

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Slashgibber

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Although the EB in sweden is fairly decent I still prefer ordering the games I want, that way I save lots and lots of dosh.

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Avatar image for Shooterninja
Shooterninja

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I hate Gamestop. I used to love my local FuncoLand until Gamestop bought out the company and removed all N64/earlier games from the shelves, jacked up all the prices, and started creating all these stupid "package deals" which are in reality the game (the only thing I want) combined with some useless art or behind the scenes DVD. I have no idea the idiots that buy those things, but apparently enough morons have been sucked into buying that crap to earn GS $7.1 billion. I don't have time to go into their used game/trade in policies, their lack of PC games, brain-dead employees, and terrible service. Don't go to GameStop.

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Avatar image for dmish82
dmish82

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Ok, I own a PS3 but I'm still gonna rip on a future game for it here: I'm just picturing it now: "Would you like to preorder Haze?" "Why the #@*! would I want to preorder Haze?"

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NyGin07

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so what gamestop bought funcoland or is funcoland? lol sorry

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NyGin07

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USS-Voyager LOL yea i have no idea either lol

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datbush

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the funcoland around my area was a decent place to go then gamestop goes and buys them out and the prices for used and older games go up the trade in value goes down the selection gets worse and the employees go from dumb to complete morons. but i suppose i should thank them as i was forced to go to ebay and i will never go back to buying retail.

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billysea

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I am still amaze at people who buy used games at EB. EB only charge those used games 10% less than new ones (meaning you pay $45 instead of $50, or $18 instead of $20), while they buy used games from people for less than 50%.

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link631

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well its an awesome game

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Death_Masta187

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they got $0.0 of my money in 07 now that their PC game selection is disgraceful... I get my 360 games from game fly for an adv. of $20 less a game... gamestop is useless to me now...

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USS-Voyager

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What happened Halo 3? It is the best selling game ever and it is not on their best seller? What the heck?!

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Jshaw71

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this is what happens when you buy up all the compation, good job gamestop, good job/end sarcsam :: shakes head ::

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y2jg

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None of that 7 billion is of my money! I shop at game crazy. If you got one around your house I would check it out.....

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damacles

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Reason for the high profits (which btw rival some oil companies..go figure), is their trade-ins. They rip you off with paying less than half, for a game you could have just bought two days ago, then turn around and sell it at $5 USD less than a new copy. Though if you want cash for your trade, you will get a lot less than half. So the reason for their super high profit is our stupidity at taking the rip off prices they give us.

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Rob_101

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Most likely due to the trade in values. You know buy the game for a few dollars from some poor sap and then turn around and sell it for a bit less than the retail price. Oh how I hate GS & EB.

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Altair1337

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NyGin07 Funcoland is owned by Gamestop/EB Games.

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Nocturnal15

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SoucTheGoose: What kinda gamestop do you go to? Gamestop is horrible. They force you to pre order games just to con you into getting a deal when its actually a rip. they also try to con you into getting the "free" edge card yet they charge you 15$ because they include a magazine that I could care less about? Then their employees look like couch potatoes who probably never played a video game before. I mean yes I do meet nice employees their who actually have more than half a brain. However, majority of them are as stupid as they look. /end rant. Im baffled at the people who mindlessly go to the store and believe half the junk that they are fed.

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Bloodbath_87

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I guess all those sales are the reason that they never have what I want when I go there, but when I go next door to Best Buy they have what i'm looking for and more.

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SoucTheGoose

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the reason we care about this is because that the larger Gamestop becomes, signals that video game sales are also growing, inturn leading to more video games, meaning statisticaly more top tier games will also be produced. or if you want a practical reason it means you don't have to drive far to trade in games, make pre-orders, or talk to some one who actually knows stuff about video games when you are buying a game

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syko76

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and we care about this crap why?

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NyGin07

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whatever happened to funcoland? i use to dream about going to that place when i was a kid...

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allright715

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Incredible! That's very big and I'm glad that there's something that is the complete opposite of USA's ecomony in the video game business.

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gamer082009

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Oh but piracy is a big concern to developers...oh pleaseeeeeeeeeeee!!

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gin_rummy89

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alot of that moneys mine lol

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foofightersrule

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Yes, I also hate their trade in values, you can sell most of your games on ebay for more than they will give you, and buy all your games on ebay for less than they will charge you. With that being said they are still the most convenient place to go for the video game needs, saves waiting for delivery and paying for shipping. But... I still would rather do most of my buying and selling on ebay or elsewhere. I am baffled by this astronomical number that they took in. I guess their trade ins really work for them well.

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joey4uncw

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Well it's good that game retailers are doing well especially the "flagship" of the gaming world retailers. Hopefully it will keep up for this year. I do know one thing though that extra 10 per game for new consoles must be helping someone other than the gamers.

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Evanrocknuma

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I love gamestop but I am however going to stop buying "old" new games from them. I recently picked up a "new" copy of COD3 and they handed it to me out of a paper case! As we all know paper cases smear and after long periods of time scratch the games in their cases. Other than this sorrowful discovory they are stupendious!

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taj7575

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trippleclick, those guys are best buy are great. most people who work there are pretty young, and they know as much or even know a lot more then those guys working at gamestop. and those gamestop guys are very annoying...

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Avatar image for Jokerofclubs777
Jokerofclubs777

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I buy all of my games there. Gonna reserve Grand Theft Auto IV too.

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Avatar image for darkreign7
darkreign7

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Yay Gamestop. Love that place.

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berkner_ram77

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I love Gamespot, and I always try to buy all my games there.

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feryl06

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wow,and so many people here hate that place. :) hahaha... guess the majority do not.

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DanieltheDead

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I love how every time I go into a Gamestop, the entire employee roster is completely different, and whenever I ask why, I always get the same answer: "They were all caught stealing." While that is somewhat off-topic, I will say that while the majority of their used prices are ridiculous ($40.00 for a used copy of Guilty Gear XX? No thanks, I'll pass). However, I have found an occasional gem every so often. (A used copy of Okami 2 weeks after it came out, for $23.00). Anyway, the bottom line is this; it's no use complaining about prices, if you don't like the price, don't buy it. Go somewhere else (online, Target, wherever) and get it for less.

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trippleclick

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Gamestop, at least in my book.. spreads video game love. Kudos to them. In my area, the employees know wtf they're talking about too, unlike BB or Circuit City or *gasp*... CompUSA

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cjdaweasel

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ummm... yay?

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taj7575

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gratz gamespot....but i dont really like you guys anymore and im not liking the people who work there either... sorry but ure trade-ins are ripoffffs

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lamprey263

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well, lately I've been having my roommate buy my games at work 'cause he gets a 20% off, but before that I bought all my stuff at GameStop, though, I usually buy all my PS2 stuff on Amazon since I don't buy used and even all the new GameStop stuff is gutted copies

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Frost259

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For everyone that complains and says the trade in values at gamestop are not fair look at it this way, you trade a madden 04 in which you bought new when it came out for 49.99 plus tax and then trade it in now a days, gamestop won't give you twenty bucks for a game they prolly won't ever sell, your actually lucky you get anything for it old sports games are not worth crap since new ones come out every year. And then the people who complain about not getting anything for trades don't be stupid and lose cases and let the CD's get all damaged, obviously you don't care to much about your game if you are losing the cases and letting them get beat to hell, so why should you get anything for something you have misused. And if anyone seriously thinks it's unfair that you trade a game in thats kinda new and only get 10 or 15 bucks for and then gamestop sells them for 35 or 40 bucks get over it, it's a damn business they have to make money somehow and you would do the same thing, the people on ebay are. I see Wii's going for two hundred dollars above the normal price everyday, not to mention Elderscrolls oblivions going for 40ish dollars when their only like 20 at gamestops used. And for everyone that loves their precious little Ebay keep doing what your doing, because while your doing that I can still go to a Gamestop buy a used game get 10 to 20 percent off with my discount card and then if I hate the game take it right back get another game or my money back... NO shipping time required.

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Diablo2343

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I just have issues w/ the pricing for some of their used games. $54.99 for a "new" game which almost a year after Gears came it they still had it priced at that. I dont mind picking up an older game used from there, but Ebay is the best place for used. new games i might buy at Gamestop or Best Buy if they have a decent selection.

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Birdman1333

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Congrats to Gamestop. They have more knowledgeable employees than Wal Mart.

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Birdman1333

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I don't buy used games unless I can't easily find a new copy because I want the publisher and developer to have my money. They are the ones that produce the product and if they get our money, they will continue to produce the games. The Gamestop employees are always trying to push the used games because that is where their profit is.

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MetalMan300

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Wow. People, I understand your complaints, but can anyone here just say congrats to gamestop?

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OAKside24

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Enron. Just sayin'. (Lies!)

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jlabadie88

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I love how every single comment here is negative toward GameStop. Oh well, they're obviously doing just fine without you all.

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