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GameStop's November New Game Sales Up 15 Percent
by Leigh Alexander [PC, Console/PC]
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December 11, 2009
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As November NPD results reveal software sales down 3.1 percent year over year, U.S.-headquartered specialty retailer GameStop says it's outpacing the industry, seeing a 15 percent lift in new software sales in the past month.
"While some indicators say that new software sales are declining, we are excited to be able to roll out robust offers and incentives to help maximize shoppers’ budgets," says executive VP of merchandising and marketing Tony Bartel.
"In November of 2009, we bucked the trend and have continued to gain market share. In fact, our U.S. stores saw a 15 percent rise in new software sales," he adds.
The company chalks up its success not only to stock of new blockbusters, but to its collection of 2,500 gaming items priced under $20.
In a holiday season where many retailers are concerned about cautious consumers, stores are competing for the Christmas game-buyer with incentives and promotions.
This widespread and particularly aggressive retailer discounting has harmed many video game publishers this year -- most recently, Ubisoft said that its normally-thriving back catalog saw gross profits decline "sharply" because of price promotions on store shelves.
[UPDATE: Lazard Capital's Colin Sebastian has also weighed in on GameStop's statement, noting: "We believe that the company is benefiting from the ongoing disparity in sales between top selling games (e.g., Modern Warfare 2) and second-tier and catalog games, given GameStop’s customer demographic of core gamers."]
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HOWEVER, there is still the market mentality that games not at $50 and more are considered "mediocre." If we don't find a way to break that mentality, we'll never be able to break the trend.
@Adam: Let's also not forget that micro-economics is still in play. People buy games in bulk when they are priced appropriately, yet publishers still demand a price point almost double that. So when GameStop prices a used game less and people buy that instead, well, that's a failure of the publisher to price correct and compete.