Gamertell

With the rise of new game genres and more educated consumers purchasing games, videogame retailer GameStop took a step back to rethink its in-store marketing strategy to cater to the casual gamers and those consumers with limited budgets statewide.

“Honestly, we are having to retool the way we think of things in our stores in terms of merchandising, layout and also customer service because it is no longer only the hardcore gamer walking in who knows exactly what he wants,” said Daniel A. DeMatteo, vice chairman and chief operating officer of GameStop during an interview with the New York Times.

This new strategy is based on GameStops performance in sales during its second quarter when its profit shares stood at US$0.13 which included a debt retirement cost of $0.01 per diluted share which actually exceeded the high-end release guidance by $0.06 per share. Gamestop hopes to raise its profits by the end of its third quarter by 30 to 32 percent by raising its diluted earnings per share guidance from $0.45 to $1.48. This will not include the diluted earnings per share which they forecast to range from $0.19 to $0.21 projecting a possible growth.

“GameStop’s outstanding second quarter was fueled by continued consumer demand for all the prevalent hardware platforms and the compelling games released during the quarter,” said R. Richard Fontaine, GameStop’s chairman and chief executive officer. “Our second quarter performance was very broad-based, with the U.S., Canada, Australia and Europe all exceeding expectations. During this quarter, we opened 150 new stores and now operate 4,954 stores in 16 countries.”

DeMatteo and Fountaine said the increase was primarily due to the popularity of top games such as Guitar Hero II, NCAA Football ‘08, Mario Party 8, Pokemon Diamond and Pearl and Forza Mortorsport 2. A rise in music-based and family-oriented games has led GameStop to create two dedicated sections this holiday season.

By Christmas 2007, GameStop will have a dedicated area for its music games which will showcase games like Guitar Hero, Rock Band and SingStar. With a rumored possibility of generating extra revenue via downloadable content. The second dedicated area is a family friendly section to help push licensed content aimed at the younger player and parents looking for gifts.

Read [Game Industry Biz] Also Read [New York Times] Site [GameStop]