GameStop reports Q1 profits, new DLC program

By Stephany Nunneley, Thursday, 20 May 2010 19:12 GMT

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GameStop has released its Q1 earnings for the year, and alongside it, COO Paul Raines has outlined the chain’s plans for the DLC program it was chatting about last November.

First up, the earnings (via PR).

Net income came in at $75.17M which is up from $70.4M YoY. Sales were up 5.1 percent to $2.08B compared to $1.98B YoY and new game software was up 13 percent, while hardware sales were down 1.6 percent.

Used profit margins came in at 48.1 percent (viaGamasutra).

Now, word on the DLC program.

COO J. Paul Raines said during GameStop’s financial call to investors that it has been working on the in-store DLC tech for “well over a year”, and also revealed that the chain’s impending customer loyalty program will start testing this autumn.

“We’ve been working on the technology for DLC for well over a year,” he said, per IGN.

“I think what’s important to understand is that we’ve had to create proprietary point of sale technology in partnership with Microsoft to be able to show that DLC catalog at retail.

“We’re also working on merchandising and marketing the DLC content in our stores. So this is something that we feel like the industry is moving our way, and our investments are starting to really be timely and publishers see us as the destination for sale of DLC in stores”.

The in-store DLC program will be launching in 35 stores this spring, and while it will be “limited” at first, more titles will be added through summer.

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