GameStop reveals $5 billion in sales for 2006

Sales at US retailer GameStop reached USD 5.3 billion (EUR 3.9bn) for the fiscal year ended 2006, a 72 per cent rise over the USD 3.01 billion (EUR 2.2bn) for the previous year.

The company also revealed that USD 2.3 billion (EUR 1.7bn) in sales came from the fourth quarter alone, with the retailer singling out World of Warcraft and console software as particularly strong performers.

Profits for the fourth quarter were USD 129.8 million (EUR 97m) compared to USD 85 million (EUR 63.6m) in 2005.

"While we are in the early stages of another strong growth cycle, it is not a mirror of the past," commented R. Richard Fontaine, CEO of GameStop.

"In fact, our 2007 guidance is based on our belief that this cycle will be deeper, wider, and longer than any previous period of new console introductions," he said.

The company expects more sales growth in 2007, with comparable store sales rising from 12 to 14 per cent.

The retailer pointed towards the launch of the PlayStation 3 in Europe, as well as Sony's God of War 2, Nintendo's Pokemon Diamond and Pearl and continued demand for Xbox 360 software as key sales drivers.

"From the technology powerhouses of Xbox 360 and PS3, to the uniquely engaging ease of play and inventiveness of the Wii, to the portability of the DS Lite, to the value of the PS2, there is a product and a price range to stimulate the core and casual gamer, and attract new customers to the videogame experience," added Fontaine.