GameStop profits rise, vaguely Nintendo related

by Chris V on

CNN dot com, one of the Internet’s top five websites affiliated with a cable news channel, is reporting that GameStop is making money hand over sweaty hand. Despite a terrible economy, millions of people continue to drop $50 per video game without blinking an eye, thus leaving GameStop free from the current financial tribulations of other businesses. “As we analyze our sales deployment, we can’t find evidence of the economy affecting our business,” nameless (and soulless) company officials said to reporters. In 2007, the video game chain’s sales increased 33%, while profit increased 82% from 2006. “[L]ike we did after 9/11 [never forget – ed.], we’re seeing store growth as consumers travel less and stay at home more.” Janco Partners industry analyst Mike Hickey attributes the success to “video game play attracting a mainstream audience” via “new consoles like the Wii, which pull back on the geekish complexity of typical content aimed at hardcore gamers.” On the other hand, geekish content aimed at hardcore gamers is also leading to steady revenue streams. “[Grand Theft Auto 4] could ship 5.8 million units in the first week, or $360 million in retail sales and potentially $110 million for the Company,” explained Hickey.

Hickey suggests putting some of your money in GameStop stock, which he describes as offering “investors an opportunity to participate in the growth of the video game market,” which is booming in large part thanks to “the remarkable success of the Wii and DS platforms from Nintendo.” This also allows folks to invest in video games without directly giving their money to orientals.