IndustryGamers: Earlier today, leading video games retailer GameStop revealed that its holiday sales were actually flat. We'd become so accustomed to reporting "record" sales for GameStop that when the news arrived we were somewhat surprised. So what happened? While GameStop was quick to blame the economy and shortages of PS3 and Wii, Wedbush Morgan Securities analyst Michael Pachter believes that the company was avoiding talking about the effect its competitors had on holiday business.
"There is a lot to hate about GameStop right now, considering that just four weeks ago, the company issued a bullish press release highlighting its strong November sales. More importantly, the press release was issued 11 days into December, implying that the strong sales trends from November persisted into December. Today, we learned that the sales trend reversed dramatically, resulting in a holiday comp slightly below the low end of guidance, and a likely earnings shortfall far below street consensus," Pachter began.