GRAPEVINE, Texas, Jan 07, 2010 (BUSINESS WIRE) -- GameStop Corp. (NYSE: GME), the world's largest video game and entertainment software retailer, today reported sales results for the nine-week holiday period ending January 2, 2010.

Total sales for the period were $2.86 billion, flat from prior year sales. New stores continue to perform very well while comparable store sales for the period decreased 8.6%.

Daniel DeMatteo, Chief Executive Officer, stated, "Despite a kick start to this year's holiday selling season with several major title launches, sales momentum was impacted in December by economic weakness in all global operating segments, winter storms at peak shopping periods in December, and unexpected shortages of key products such as New Super Mario Bros. Wii, Nintendo Wii and Sony's PlayStation 3 consoles."

New video game software sales increased 4% in the holiday period. The top five video games sold during the holiday period were Call of Duty: Modern Warfare 2 from Activision, Ubisoft's Assassin's Creed II, Nintendo's New Super Mario Bros. Wii,Left 4 Dead 2 and Dragon Age: Origins from Electronic Arts.

Hardware sales declined 8% due to recent console price cuts and a decline in unit sales on a year-over-year basis.

Used products continue to be a value draw for consumers and outperformed the sales trends in general, but were also somewhat affected by adverse weather and negative macroeconomic conditions. Used video game product sales grew 10%, which was less than forecast. Based on a store-by-store and regional analysis, we saw no impact by other entrants in this category.

Updated Guidance

Based on results to date, we are lowering our fourth quarter 2009 guidance. GameStop now expects fourth quarter 2009 diluted earnings per share guidance to range from $1.25 to $1.29. Comparable store sales in the quarter are now expected to range from -8.5% to -9.5%.

Full year diluted earnings per share are forecast to range from $2.23 to $2.27. Comparable store sales are projected to decrease between -8.0% and -9.0% for the full year, with total sales growing between +2.0% and +3.0%.

Cathy Smith, Chief Financial Officer, added, "It is important to note that this is still the second highest earnings year in GameStop's history coming off a record fiscal year 2008. Our fiscal year 2009 projected EPS represents a 25% growth over fiscal year 2007."

Note that guidance does not include debt retirement costs or merger-related expenses.

Outlook

Although we are still in the planning stages for our fiscal year 2010, we expect that strong PlayStation 3 demand, an exciting title line-up, combined with anticipated economic recovery, will all be factors that should drive software growth and therefore GameStop earnings in 2010.

Full year 2009 sales and earnings results and fiscal 2010 earnings guidance are expected to be released in mid-March 2010.

Cash Flow

At year end, GameStop expects to have almost $700 million of cash on hand, after having funded approximately $300 million of capital investments and debt repurchases in the year. As a result of consistently strong cash flow generation, the company is exploring options to increase shareholder value and will announce its plans shortly, subject to Board approval.

About GameStop

Headquartered in Grapevine, TX, GameStop Corp., a Fortune 500 and S&P 500 company, is the world's largest video game and entertainment software retailer. The company operates 6,457 retail stores in 17 countries worldwide. The company also operates an e-commerce site, GameStop.com, and publishes Game Informer(R) magazine, a leading multi-platform video game publication. GameStop Corp. sells new and used video game software, hardware and accessories for video game systems from Sony, Nintendo and Microsoft. In addition, the company sells PC entertainment software, related accessories and other merchandise. General information on GameStop Corp. can be obtained at the company's corporate website: http://www.gamestopcorp.com.

Safe Harbor

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, the outlook for the fourth quarter and fiscal year 2009, future financial and operating results, the company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of GameStop's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. GameStop undertakes no obligation to publicly update or revise any forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the inability to obtain sufficient quantities of product to meet consumer demand; the timing of release of video game titles for next generation consoles; the risks associated with expanded international operations and the integration of recent acquisitions, including Micromania; the impact of increased competition and changing technology in the video game industry; and economic and other events that could reduce or impact consumer demand. Additional factors that could cause GameStop's results to differ materially from those described in the forward-looking statements can be found in GameStop's Annual Report on Form 10-K for the fiscal year ended January 31, 2009, filed with the SEC and available at the SEC's Internet site at http://www.sec.gov or http://investor.gamestop.com.

Schedule I
GameStop Corp.
Sales Mix
		9 Weeks Ended						9 Weeks Ended
		Jan. 2, 2010						Jan. 3, 2009
					Percent						Percent
		Sales			of Total			Sales			of Total
Sales (in millions):
New video game hardware		$	623.6		21.8	%		$	680.2		23.8	%
New video game software			1,294.6		45.2	%			1,246.0		43.7	%
Used video game products			596.5		20.8	%			543.5		19.0	%
Other			349.2		12.2	%			386.3		13.5	%
Total		$	2,863.9		100.0	%		$	2,856.0		100.0	%

SOURCE: GameStop Corp.

Chris Olivera
Vice President,
Corporate Communications
GameStop Corp.
(817) 424-2130
or
Matt Hodges
Director,
Investor Relations
GameStop Corp.
(817) 424-2130