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Forums - Sales - Interesting Gamestop data that contradicts NPD April

Zucas said:
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. 


True but the numbers are in the same range.



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

PS3-Wii gap : 20 millions and going down !

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greenmedic88 said:
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.

Yes but 1% of $59 billion is $590 million. Yes 59 billion is what Wal Mart made last quarter.

Source

I highly doubt that gaming only makes up 1% by the way, of those sales. Meaning I'm really starting to put in perspective of how much larger sales at Wal Mart is. If it was 5% then it would be $2.95 billion. I mean it doesn't matter how minimal game sales are there, it's already making GS's $1.8 billion look bad.

I can tell you right now that Wal Mart's gaming revenue is not 1% now is it probably 5%. It's probably between 5% and 10%.



Only way it could be 5% or even more was if NPD data underestimated the gaming market revenue by an order of magnitude....

Because for the 3 months in question ( Jan-Feb-March) NPD total data for hardware +software is 4.21 billion...

If Wallmart by itself had sold 2.95 billion of those NPD credibility just goes totally to the toilet...

Now if you're trying to say NPD is wrong, I do agree !



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

PS3-Wii gap : 20 millions and going down !

well maybe they only increased at gamestop,although hte npd numbers seem low



tag:"reviews only matter for the real hardcore gamer"

ioi said:
Hmmm, this thread is slightly annoying. Let's get some facts straight

1. Gamestop is the market leader in US videogame sales accounting for 25-30% of all sales.

2. NPD data for April does seem too low based on everything I know (which is a lot).

3. Having said that, inferring anything from what gamestop says is clutching at straws since they may have doubled in sales whereas all other stores could have stayed flat - not the case, but just to make the point that taking one retailer isn't a good way of making an argument for the whole market.

End of conversation.

Doh, I really didn't think they were that high although if you facture software and used games it kinda does make sense....

I agree with you Ioi my argument was a clutch, it just seems unlikely that the market as a whole would have behaved differently from the market leader....



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

PS3-Wii gap : 20 millions and going down !

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HappySqurriel said:

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.


 The revenue is broken down in the report, it is strictly NEW that is being used here. 

@ioi,

1) I'm very surprised they are that high, but I also hadn't seen the data before though.

2)  I agree NPD numbers absolutely seem low for a number of reasons.

3) Pretty much exactly what I said...almost word for word. 



To Each Man, Responsibility
ioi said:
Hmmm, this thread is slightly annoying. Let's get some facts straight

1. Gamestop is the market leader in US videogame sales accounting for 25-30% of all sales.

2. NPD data for April does seem too low based on everything I know (which is a lot).

3. Having said that, inferring anything from what gamestop says is clutching at straws since they may have doubled in sales whereas all other stores could have stayed flat - not the case, but just to make the point that taking one retailer isn't a good way of making an argument for the whole market.

End of conversation.

1 is not true.  Hell I'll go for the 15% market share.  I can believe that.  But 25%-30% is simply no probably or possible.  Sorry ioi. 



Ail said:
I was actually surprised by my marketshare numbers so I just spent the time parsing BestBuy 4th quarter results ( sadly not same period, it's Jan-Feb-March whereas Gamestore has weird Feb-March-April).
It's hard to dig into Best Buy numbers as they don't separate DVD and CD from gaming.

But for that 3 month period they have roughly 2.3 Billion of US revenue for Gaming +DVD +CDs. For the same period Gamestop would be roughly around 1.5 billions for US revenue ( take or add 100 or 200 millions).

In the end if you remove DVD and CD for BestBuy and used games for Gamestop I woudn't be surprised if their marketshare were quite close from each others....

 You conveniently forget that a large portion of Gamestop's revenue is from used game sales.



Ail said:
Only way it could be 5% or even more was if NPD data underestimated the gaming market revenue by an order of magnitude....

Because for the 3 months in question ( Jan-Feb-March) NPD total data for hardware +software is 4.21 billion...

If Wallmart by itself had sold 2.95 billion of those NPD credibility just goes totally to the toilet...

Now if you're trying to say NPD is wrong, I do agree !

I guess I'll just go for the latter.  More than likely NPD is wrong.  Cause ioi ain't right about GS being market leader and nor is relating the revenue here so NPD must be wrong.   



Zucas said:
ioi said:
Hmmm, this thread is slightly annoying. Let's get some facts straight

1. Gamestop is the market leader in US videogame sales accounting for 25-30% of all sales.

2. NPD data for April does seem too low based on everything I know (which is a lot).

3. Having said that, inferring anything from what gamestop says is clutching at straws since they may have doubled in sales whereas all other stores could have stayed flat - not the case, but just to make the point that taking one retailer isn't a good way of making an argument for the whole market.

End of conversation.

1 is not true.  Hell I'll go for the 15% market share.  I can believe that.  But 25%-30% is simply no probably or possible.  Sorry ioi. 


I believe the boss has access to the real industry data so I will take his word :P

Besides if you add software and do the maths ( which anyone can do based on what was linked in this thread) you will probably be able to confirm this by yourself..



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

PS3-Wii gap : 20 millions and going down !