GameStop’s quarterly profits drop, company continues with planned expansions

The Ft. Worth Star Telegram reports that Grapevine, Texas-based retailer Gamestop’s quarterly net profit dropped 32 percent for the company’s second quarter. GameStop CEO Daniel DeMatteo blamed the recession and a so-so gaming lineup in the first half of 2009.

“Due to the effects of the recession and strong prior year comparisons, the video game industry experienced a sharp decline in consumer spending during the quarter,” DeMatteo said in a statement. “Looking ahead, as the new title release schedule improves, we expect positive earnings growth in the back half of the year.”

In 2009, the first half of the year was top loaded with blockbuster games including Grand Theft Auto IV, Wii Fit and Super Smash Bros. Brawl. There’s cause for optimism on the horizon, though. The recent $100 price drop of the PlayStation 3 and its new “slim” model is likely to spur sales.

As DeMatteo pointed out, the year’s big gaming guns have yet to fire. Call of Duty:Modern Warfare 2, Beatles:Rock Band and Halo 3:ODST are among the huge releases still to come in 2009, and there is great buzz about Batman:Arkham Asylum which hits stores August 25, 2009.

DeMatteo said GameStop are forging ahead with its schedule of store openings. Gamestop has opened 110 stores in 2009 with half of those in the United States.

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