Listening to GME conference call now, it says UFC game will be top 3 selling game for 2Q 2009!
Conference Call Highlights:
-Europe slowing but used game biz is picking up
-2Q has no hardware price cuts built in estimates but are built in 3Q/4Q hardware sales estimates
-possible wii price cut as well
-Batman game reduce 2Q guidance because of release date moved to Sept
-Margins still did well
-Hardware sales are key weakness
-CEO says hardware manufactuers will have to reduce prices to meet expectations
-Last year's stimulus checks helped moved hardware, this year they don't have that; therefore, price cuts are needed
-Wal-Mart putting kiosk in stores for videos games as competition, no fears yet...
-Margins for platforms haven't changed. Europe refurbishing centers are improving and will be able to take more used hardware.
-New product base in second half and used games will drive their year. Bioshock 2, Madden, Call of Duty, Modern Warfare, Guitar Hero, Batman, etc. (All in all, they are betting on 3Q/4Q to make their FY EPS).
I will be back this weekend with Goldman Sach's View, Sterne Agee's View, and then more importantly my view (kidding).
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