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Paul Raines, Gamestop CEO, on the future of gaming and his holiday retail predictions.
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Let's take -- hear talk about a waiting list.
Try being the 500000.
Person in line for the new hot item that's how many gamers want -- the brand new Nintendo -- you which.
-- -- quarter actor it can't let go of this -- not even doing his job.
It hits store shelves yesterday GameStop which sells all the stuff is already reporting record pre orders and sales and GameStop shelves.
Well are they now empty did they sell out we bring in Paul Raines GameStop CEO and a Fox Business exclusive from Dallas Texas.
All right I'll get right to -- Paul did you sellout.
Hi Liz it's great to be with you thanks for us for having us today know we're still selling our customers can still committed pick up their reserve.
We use of course as we said we have a very large wait list as well.
And we are working closely with our good friends that Nintendo around the world to bring in more products so we still have -- and and of course customers.
Are coming in -- -- to -- their reservations.
Now I know that because of technology you guys have the ability to know how many of soul how many of you -- Paul.
I thought.
-- you don't have to let my good president had to make those announcements before we can make a nice Euro.
By the same thing happen to black ops to an assassin's creed and halo but I will tell you were very happy with the launch and you don't -- never in history.
Have we launched a console.
With the kind of market share we have and the power of rewards community of 21 million customers so we're really excited about this console in this technology all the way through the rest of the -- what.
Talk about a because the weak -- was the first new sort of hardware console in about six years as I understand it -- the Xbox has been hugely hugely powerful but.
Here comes the we you witches and there's there's obviously great buzz about it playstations behind that then you've got the DS three which is also Nintendo but.
The question becomes you know -- 300 dollar product is not cheap obviously.
Are you surprised with what is it about this particular hardware -- that has captured people's attention and force money out of their wallets.
What you know -- our customers are looking for innovation and and one of the things about the console gaming businesses that it does go in cycles and we've been at the end of -- console cycle and that's put pressure on us and many other people in the in the category we've had -- creates -- new businesses at the end of this cycle but now that we're emerging.
Into the next console our our customers our community tells us they are hungry for innovation I think.
You know the -- U is so innovative.
It has a tablet game pad controller that allows you for a synchronous game play in other words you can play on your screen or on your tablet.
You can have people playing different parts of the game.
So that's pretty exciting and then as far as the price point.
You know the great part of GameStop is we -- for you would trade credits that you can bring us in year old Smart -- Year old we or year old tablet that we'll help you pay for that new console this holiday what I'm I'm -- product.
The -- on sales that's been a really good narrative for you especially with the games themselves but that leads to the question so many -- these games are going digital they're going online and there's that kind of eliminates your.
Cartridge business does -- not what are you going to do to feel that -- -- you know it's been -- in case there's we've been as you know because you know us well we've been a transformation here for about the last three years.
And we created the ability to sell digital content in our stores in fact were probably.
The largest player in retail on selling DLC your digital content for consoles and our stores and on our web sites and platform so.
I guess the first thing we've done is we sell digital content in our stores in fact we recently launched the Activision call of duty black -- to.
I -- she passed -- sold thousands and thousands of them so.
As far as the pre owned games.
You know it's amazing pre owned games actually drive sales of digital content because games video games are such large files.
They really aren't aren't that popular for full game downloads what is popular.
Is -- on digital content which we've been able to sell in our stores friend and attach it to our pre owned games fairly well that plus the fact that we're in the pre owned electronics business today.
Has really given us a lot of nice growth -- for the future.
So Paul you know it nonetheless we're seeing at least according to and PDB eleventh consecutive month of video game sales declines I think about down 25% year -- year which which would scare me of fiber and electronic arts or maybe even Activision her take -- Depending on all these yet what NYC I use my son who's eight years old as one of the it's sort of retail experts for me and he's loving things like -- craft.
I don't let him play assassin's creed but that's all I'm hearing and when you look at the list of some of the best selling game suddenly assassin's creed seems to be pretty hot.
Is the onus on the actual game makers to keep this going or is the onus on the hardware guys.
Well I tell you -- that's a great question and the end there's no question that the end of the console cycle as it is and any technology cycle and any business.
The end of the console cycle has been challenging and that NPD data that you reference.
That is new software and hardware sales in the United States it doesn't measure.
Our pre on business our international business -- -- our electronics and digital businesses but it is true that contents.
Does drive.
Value and excitement in this category so.
Armed I think that the games like assassin's creed are so remarkable the game -- so fresh and exciting you know to have.
Video game play out in the middle of the revolutionary war in the United States and George Washington's army -- -- Is exciting stuff that's.
We do believe the hardware cycle -- will be a very large driver and always has been historically a kind of top line and consumer demand so we're excited about that well.
The stock is -- -- hitting a 52 week high today Paul Raines GameStop CEO and a Fox Business exclusive but when when we get the numbers will put a month thank you so much congratulations.
Great talking dealers take care eight credits before the closing bell rings -- Republicans moving closer to saying yes to a tax hike Charlie Gasparino has the latest as we move closer to.
