The Wall Street Journalreports that GameStop Corp.'s net income rose 22% because of strong sales of used videogames.
GameStop had predicted last month that profit and sales were solid in the holiday quarter despite declining consumer spending and falling hardware prices. Shareholders have worried the slumping economy will pinch sales of videogames and consoles, especially as competition from other retailers like Best Buy Co. and Wal-Mart Stores Inc. is rising.
For the period ended Jan. 31, GameStop posted net income of $232.3 million, or $1.39 a share, up from $189.8 million, or $1.14 a share, a year earlier.
Revenue rose 22% to $3.49 billion as sales at stores open at least a year increased 9.6%. New-game software sales increased 23%, while used-game sales jumped 31%.
The Wall Street Journal says GameStop plans to open another 200 store sover the next few years. The article mentions bricks-and-mortar competitors like Best Buy and Wal-Mart but GameStop also faces a new threat from Amazon which recently debuted a used-games trade-in service.
The Wall Street Journal 
