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Forums - Sales - Interesting Gamestop data that contradicts NPD April

bdbdbd on 22 May 2008
Sqrl said:
Zucas said:
I'm willing to admit I'm wrong but I would be absolutely shocked if this turned out true. I mean Wal-Mart is about 40% of the market. It as least 20x as large of a company as Gamestop with a hell of a lot more stocks from the companies than GS. And to think GS could even be close to half of the revenue would be shocking.

 I was surprised too, but there aren't any apparent problems with the comparison to me so unless someone can point one out I don't see why I should ignore it...it wouldn't be the first or last time I was wrong about an assumption.

And frankly you were right about it not being terribly important so I don't really plan to think about it too much =P 


How come nobody thought this before. Different priced products, sold at different currency zones at different volumes. When Ails calculation on Gamestops US revenue was based on the percentage of stores in the US.

Ei Kiinasti.

Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.

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Zucas on 22 May 2008

There has to be something we are missing and I think I know what it is. First of all market share isn't found out simply by hardware revenue in the first place so I guess I should have thought of that beforehand instead of jumping to conclusions.

Secondly I know for a fact that on a weekly basis(considering my bro works at a Gamestop) that they get about 5-10 new consoles in. Compared to a Best Buy where they can get anywhere from 20-60 a week depending on the product. So theoretically sales would have to be at least 3x greater. But that would mean in the hardware revenue market share that Best Buy has close to 45% market share. When Walmart and Target get about the same as Best Buy. This isn't adding up to 100%. This is where I have problems seein that even just in the hardware revenue for market share that GS could have 17%. Leaving only 83% to WalMart, Target, Best Buy, and multiple other chains whether bigger or not.

Are you at least getting where my surprise is coming from.



Ail on 22 May 2008

Based on how much Gamestop revenue has climbed over the last 12 months I woudn't be surprised if they haven't actually been gaining marketshare, so maybe the fact that they were a smaller player was probably more true 1 year ago...

Franly I buy all my software and hardware at Best Buy and I will be the first to admit it is generally a lot easier to get a game on release day at Gamestop through their preorder than it seems to be at Best Buy...( the way Best BUy handles gaming varies a lot depending on the shop and I can't say they really do a stellar job of it..)



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

Sqrl on 22 May 2008
bdbdbd said:
Sqrl said:
Zucas said:
I'm willing to admit I'm wrong but I would be absolutely shocked if this turned out true. I mean Wal-Mart is about 40% of the market. It as least 20x as large of a company as Gamestop with a hell of a lot more stocks from the companies than GS. And to think GS could even be close to half of the revenue would be shocking.

I was surprised too, but there aren't any apparent problems with the comparison to me so unless someone can point one out I don't see why I should ignore it...it wouldn't be the first or last time I was wrong about an assumption.

And frankly you were right about it not being terribly important so I don't really plan to think about it too much =P


 

How come nobody thought this before. Different priced products, sold at different currency zones at different volumes. When Ails calculation on Gamestops US revenue was based on the percentage of stores in the US.

Well first we don't have the data to fill in the gap so the assumption that its uniform does take away some of the accuracy but in that regard it has just as much chance to increase the percentage as lowering it.  

I'm not saying there aren't shortcomings to how he approached it but I still don't see anything that plainly says the percentage is too high or too low. 
To Each Man, Responsibility
Ail on 22 May 2008
Zucas said:
There has to be something we are missing and I think I know what it is. First of all market share isn't found out simply by hardware revenue in the first place so I guess I should have thought of that beforehand instead of jumping to conclusions.

Secondly I know for a fact that on a weekly basis(considering my bro works at a Gamestop) that they get about 5-10 new consoles in. Compared to a Best Buy where they can get anywhere from 20-60 a week depending on the product. So theoretically sales would have to be at least 3x greater. But that would mean in the hardware revenue market share that Best Buy has close to 45% market share. When Walmart and Target get about the same as Best Buy. This isn't adding up to 100%. This is where I have problems seein that even just in the hardware revenue for market share that GS could have 17%. Leaving only 83% to WalMart, Target, Best Buy, and multiple other chains whether bigger or not.

Are you at least getting where my surprise is coming from.

Not really.

You forget there are 954 Best Buy in the US and 4000 or so Gamestops...

So do the maths and you get 20 to 40k console a week for Gamestop and 20 to 60k for Best Buy....

 



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

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Sqrl on 22 May 2008
Ail said:
Based on how much Gamestop revenue has climbed over the last 12 months I woudn't be surprised if they haven't actually been gaining marketshare, so maybe the fact that they were a smaller player was probably more true 1 year ago...

Franly I buy all my software and hardware at Best Buy and I will be the first to admit it is generally a lot easier to get a game on release day at Gamestop through their preorder than it seems to be at Best Buy...( the way Best BUy handles gaming varies a lot depending on the shop and I can't say they really do a stellar job of it..)

 You are correct the 17.3% is hardware market share only.  That part was a given though.

  
To Each Man, Responsibility
greenmedic88 on 22 May 2008

And of that 20x, what percentage of Wal-Mart's revenues is represented by video game/hardware sales? Less than 5%? I'd go as far to say that it could be under 1% of their total revenue considering they sell literally everything.

GS' revenue on the other hand is represented 100% by game/hardware sales.



Zucas on 22 May 2008
Ail said:
Zucas said:
There has to be something we are missing and I think I know what it is. First of all market share isn't found out simply by hardware revenue in the first place so I guess I should have thought of that beforehand instead of jumping to conclusions.

Secondly I know for a fact that on a weekly basis(considering my bro works at a Gamestop) that they get about 5-10 new consoles in. Compared to a Best Buy where they can get anywhere from 20-60 a week depending on the product. So theoretically sales would have to be at least 3x greater. But that would mean in the hardware revenue market share that Best Buy has close to 45% market share. When Walmart and Target get about the same as Best Buy. This isn't adding up to 100%. This is where I have problems seein that even just in the hardware revenue for market share that GS could have 17%. Leaving only 83% to WalMart, Target, Best Buy, and multiple other chains whether bigger or not.

Are you at least getting where my surprise is coming from.

Not really.

You forget there are 954 Best Buy in the US and 4000 or so Gamestops...

So do the maths and you get 20 to 40k console a week for Gamestop and 20 to 60k for Best Buy....

 


Yes but that only works assuming a sellout.  Otherwise now we are divulging into what store sales more to customers.  Meaning we are getting into brand appeal of retail stores which I really don't won't to get into. 



Ail on 22 May 2008
bdbdbd said:
Sqrl said:
Zucas said:
I'm willing to admit I'm wrong but I would be absolutely shocked if this turned out true. I mean Wal-Mart is about 40% of the market. It as least 20x as large of a company as Gamestop with a hell of a lot more stocks from the companies than GS. And to think GS could even be close to half of the revenue would be shocking.

 I was surprised too, but there aren't any apparent problems with the comparison to me so unless someone can point one out I don't see why I should ignore it...it wouldn't be the first or last time I was wrong about an assumption.

And frankly you were right about it not being terribly important so I don't really plan to think about it too much =P 


 

How come nobody thought this before. Different priced products, sold at different currency zones at different volumes. When Ails calculation on Gamestops US revenue was based on the percentage of stores in the US.

It could be the case but I have been very conservative in assuming 4k out of 5400 gamestops are in the US. In reality it looks like it's more than 4100 and of the remaining 1300 over sea shops 10% were opened during the quarter and probably didn't contribute a full quarter to the revenue ( 105 shops out of the 5400 were opened oversea in that quarter).

This would be a tonn easier if companies all reported financial data the same way.

Best Buy separates International from US but doesn't separate gaming from DVDs and CDs, even less gaming hardware from software.

Gamestop separates hardware from software but doesn't separate international from US...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

HappySqurriel on 22 May 2008

Just as a consideration on the "Revenue vs. Marketshare" debate ...

Typically, when we're talking about sales and marketshare in the videogame market we're refering to new game and system sales. Gamestop is probably the biggest retailer of used videogames, systems and accessories which means that their revenues probably are heavily impacted by this; on top of this Gamestop also sells a lot of products that are game related but are not videogames.