Much awaited FPS game of 2014 Bungie’s Destiny has been released and GameStop Corp. (NYSE:GME) is expecting a lot of revenue and uplift from it. Discussing the new launch, business opportunities and gaming trends in a program on CNBC, Robert Lloyd, GameStop CFO said that GameStop Corp. (NYSE:GME) is doing great in the market and is still very relevant in the context of the emerging digital trends.
“We are still very relevant, we had the Destiny launch yesterday, we started at midnight, on Tuesday morning and we have had a tremendous amount of traffic come through our stores to buy this game. This is an exciting game that is expected to be the biggest new launch of intellectual property in the videogame business history,” said Lloyd.
Answering the question about future prospects of GameStop Corp. (NYSE:GME) and growth of the gaming industry, Lloyd said that his company is flourishing at the moment and will do the same in the future. He said that people come in the GameStop Corp. (NYSE:GME)’s stores to buy digital content. He said that his company made $700 million last year by selling digital content through its stores. He claimed that people come into his company’s stores because they can get an advice from the company’s associates about the upcoming physical and digital products. Customers can also trade physical and digital products and get power up points through the company’s power up rewards program.
Lloyd added that GameStop Corp. (NYSE:GME) believes in innovation at every level. The company has a slogan, which touts that it has to be one step ahead of the rate of change of the industry. Lloyd said that if his company is ahead of the competitors, they think that they can also perform very well in the digital world. He also mentioned the cricket service at company’s 208,000 stores in the US.
Commenting about the increase of digital adaption, remote downloads of games and depletion of on-stores purchases, Lloyd said that digital adaption in the gaming industry is increasing but he cannot say anything about its effect on GameStop Corp. (NYSE:GME), because sufficient data of rate of adaption and other related attributes is not available.
David E. Shaw‘s D.E. Shaw & Co., L.P is one of the shareholders of GameStop Corp. (NYSE:GME), with 334,411 shares of the company in its equity portfolio as at the end of June.