GameStop Talks PS3, Wii Launch Numbers, DS Lite Shortages

Talking in the conference call today following its financial results, GameStop company represent...
Talking in the conference call today following its financial results, GameStop company representatives weighed in on a multitude of game-related issues, including launch numbers for PlayStation 3 and Wii in GameStop stores, and the current DS shortages. Regarding the Nintendo DS Lite, representatives for the predominant U.S. specialty video game retailer noted that the handheld continues to be in short supply, noting that "...we're being replenished every week...but basically we're probably running with only a couple weeks of inventory." GameStop COO Dan DeMatteo added that he was unable to give a "definitive answer" as to if GameStop "will be in full supply at the holiday or not", showing the continuing popularity of Nintendo's relaunched portable, which has been tricky to find in some retail stores since its launch in June. Turning towards the fourth quarter launch expectations concerning the Wii and PlayStation 3, David Carlson, GameStop's executive VP and CFO, commented that the company is remaining conservative “until [the consoles] actually show up at our warehouse.” He noted that the company is expecting itself to receive "around a million units of PS3 in the US, which is somewhere around half or less of what Sony has said [it will ship]." Regarding the hotly anticipated Wii from Nintendo, he noted that GameStop itself is anticipating receiving approximately 750,000 units in the U.S. for the Wii's launch window. He added: "We believe that probably at this point [it] could be a light number." DeMatteo added that GameStop will not begin taking pre-orders for either console unit more concrete information regarding “likely launch quantities” is made available. He added: “We don't want to do what we did last year, which was to take way too many [pre-orders] on the 360, and then under-deliver. We want to get closer to keeping a promise to the consumer." Finally, GameStop also indicated that based on the information it has from Nintendo, more information concerning the Wii's launch quantities will be made available to the retail chain later in August, and that next week the company is meeting with Sony regarding the launch of the PlayStation 3. However: "We'll know Nintendo's [launch quantities] before Sony's," said DeMatteo, indicating that it did not expect Sony's launch numbers to be revealed in the imminent meeting.

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