Gamestop 3Q15 Earnings Call Notes

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Julian Paul Raines – Chief Executive Officer

It’s not easy to reinvent a company from an established base

“you can imagine, Seth, for us, a company that’s in transformation of the kind we’re in, it’s a trade-off everyday. How do we disinvest in the core, as the core becomes a smaller part of our business and how do we invest in these new businesses. And we’ve had our struggles on some of these.”

The install base for the consoles is greater than it has been, people can’t all be just streaming Netflix

“The other thing too is that the install base on hardwares is so much greater than it has been. You’ve got believe there is going to be people chasing software for that install base. I mean they can’t all be streaming Netflix, right. There’s got to be some people playing video games on all those consoles. So that gives us a little bit of optimism.”

It’s hard to find categories that are lower margin than video gaming

“the reason we’re in these categories, if you go back to our strategic work, the reason we’re in these categories is because they are higher margin than video gaming. It would be hard to find categories, by the way, that are lower margin than video gaming by the time you add in the hardware. So Tech Brands, Apple and AT&T as well as Loot are additive to our gross margin. So that’s going to create more profitability.”

Robert Lloyd – Executive Vice President and Chief Financial Officer

Tony Bartel – Chief Operating Officer

Console sales up 31% y/y in first two weeks of November

“Sales of Microsoft’s Xbox One and Sony’s PlayStation 4 are up 31% during the first two weeks of November. We continue to dominate the new console cycle, selling over one-half of our Xbox One and PS4 software, generating a 53% share during the quarter.”

Star Wars Battlefront got off to a slow start

“Sure. And I think when it come to Star Wars, let me reiterate what Rob, said, I think Star Wars Battlefront got off to a slow start. Given the buzz around the movie, we anticipate that this game is going to be a very strong game, when the movie launches in mid-December. Not to mention the fact that we have it prominently displayed in our Black Friday, and in fact we’re the only retailer that has it with significant discount, which is also going to guide sales…So while Star Wars is off to a bit of a slow start, we do think that it is going to rally very strong, as we get to closer to the movie.”

Michael Mauler – Executive Vice President and President, International

Michael Hogan – Executive Vice President, Strategic Business and Brand Development

Michael Buskey – Executive Vice President and President, U.S. Stores

Matt Hodges – Vice President, Public and Investor Relations