Nintendo Video Game

Game Stop Corporation – (GME: NYSE) Buy Growth Drivers The video game industry continues to show strong growth even when consumers are Investment Thesis GameStop is the world’s largest video game GameStop’s history originates back to 1983 The majority of GameStop’s revenues are generated from new and pre-owned video game software, hardware, pc software, and gaming accessories. GameStop at any time has over 1,000 skus of new video games and roughly 3,000 skus of used video games. Most new video game software is purchased directly from the manufacturer. GameStop does not rely manufacturer for its 2 either in-store credit or cash. Used video game software traditionally sells for $16 while new video game software averages at $42. In 2007, used video game products generated a gross profit rate of 48.7% while new video games economy. This increase in pre-owned product sales will be favorable to GameStop’s margins. GameStop sells all major video game platforms in their stores. Current popular video game platforms include Sony PlayStation 2 and 3, Xbox 360, Nintendo Wii, and Nintendo DS. Video game hardware sa release of new platforms. Generally the release of new platforms drive increased sales of video game software. Video game platforms amounted to a 6.5% margin in fiscal year 2008 The accessories that GameStop sells is primarily made up of memory cards, controllers, video game guides, headphones, GameStop's Sales 22% 15% New Video Game Software Pre-Owned Product Videogame Hardware Accessories and Other GameStop’s goal is to strengthen its position as the world largest retailer games and PC software. GameStop intends to internationally along with increasing comparable store sales and earning. GameStop will increase its comparable store earnings used video game products. 3 through the offering of a reward program to Game Informer subscribers. Members are given in-store discounts on select merchandise. A significant portion of new video games sales are within the first few days of its release. GameStop’s strategy is to provide a first-to- GameStop has employed many strategies that GameStop opened 421 stores and by the end of this year they will ha 4 , 66, Chairman of the Board, Executive Chairman and Director, was previously the Chief Executive Officer from various executive and management roles with The video game industry has been growing rapidly. According to the NPD Group, a GameStop is highly dependent on receiving timely shipments of products from their suppliers. Primary suppliers of video game substantially impact sales. Along with timely shipments, GameStop depends on software to develop new gaming software. If the game developing industry were ever to slow down, Game 5 6 Based on GameStop’s growth drivers, I believe position of GME for the 12-month target price GameStop.com Wikipedia GameStop 10-K and 10-Q Hilliard Lyons Equity Research Credit Suisse