Use access key #2 to skip to page content.

Varchild2008 (83.79)

Guess what? Every Analyst was WRONG again!



October 13, 2011 – Comments (1) | RELATED TICKERS: BBY , GME , EA

Given the string of NPD New Sku Video Game Sales Reports over the Summer being abysmal, I bet the following statement I will make will make you accuse me of LYING.

The Video Game Industry as a whole in the 2nd Quarter of 2011 has sold more hardware + software + digital + accessories + rentals + Dnloadable Content + misc...   Than it has sold in the 2nd Quarter of 2010.

In fact....The increase is 1% over 2010 Q2.   That is an INCREASE!!!!!! 

Given how poorly video gaming stocks performed all Summer Long.....How in the world can this be?

Well.... Not until October 5th did NPD Group release its Q2 2011 Games Industry: Total Consumer Spend report.

This report is an absolute BOMBSHELL in so many ways.....

1)  Retail Stores that diversify into DLCs and Digital and Mobile and So On will prosper...

2)  New SKU Software Sales and to some extent New Hardware Sales have been the culprit over the Summer... Used Hardware, however, has filled the GAP in many respects.

3)  Those Motley Fool All Stars that label GAMESTOP as BLOCKBUSTER or TOWER RECORDS simply do not get how diversified Gamestop is right now.

Even Best Buy sells Downloadable Content and has their own Website for Mail Order....and so on...
Walmart allows you to stream DEMOs of games over their website....

The reality is Retail is Adapting and the Video Game Industry has done VERY WELL overall despite the 9+% unemployment rate.   Despite the SPOOK STORIES over Consumer Spending....
Despite the SPOOK STORIES over "no one buys anything except 99 cent Angry Birds social games" spook stories...

Yes I know Holloween is coming soon....  That doesn't matter...  What matter's is the truth.

Read the Truth for yourself ALL STARS!!!

1 Comments – Post Your Own

#1) On October 17, 2011 at 4:23 PM, chk999 (99.96) wrote:

Jim Chanos (HF manager) thinks it's a value trap: 

Report this comment

Featured Broker Partners