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Press release from Business Wire

GameStop Reports 2010 Holiday Sales Results

Thursday, January 06, 2011

GameStop Reports 2010 Holiday Sales Results08:30 EST Thursday, January 06, 2011 GRAPEVINE, Texas (Business Wire) -- GameStop Corp. (NYSE: GME), the world's largest multi-channel video game retailer, today reported record sales results for the nine-week holiday period ended January 1, 2011. Total sales for the period were $3.02 billion, a 5.4% increase as compared to the 2009 holiday sales period, with comparable store sales increasing 3.4%. GameStop also produced 32% growth in gift card sales in December. Paul Raines, Chief Executive Officer, commented, "GameStop exceeded its holiday sales plan based on the strength in Kinect hardware and new software sales driven by core titles. Additionally, our PowerUp Rewards™ loyalty program, already six million members strong, gave consumers more reasons than ever to shop GameStop across multiple channels." Tony Bartel, President, added, “Over the holiday, GameStop reaped the benefits of its investment in e-commerce. GameStop.com sales rose more than 100% versus last year, far outpacing online industry growth during the period, remaining the fastest growing website in the video game space.” For the holiday period, total company sales of new hardware improved 7.4%, primarily from the successful debut of Microsoft's Kinect. New video game software sales increased 3.3%, driven by strong sell through of Sony PlayStation 3 and Microsoft Xbox 360 titles, such as Activision's Call of Duty: Black Ops and Ubisoft's Assassin's Creed: Brotherhood. Sales in the Other category, which includes video game accessories and PC games, grew 15.9%, led by sales of Sony PlayStation Move and Blizzard Entertainment's World of Warcraft: Cataclysm. Total used products gained 1.7% during the period; however, the U.S. segment increased 8.5% in December and post-holiday sales are significantly outperforming expectations. Updated Guidance Based on the holiday results and current trends, GameStop is reiterating its previously announced fourth quarter and full year earnings per share guidance ranges of $1.53 to $1.59 and $2.63 to $2.69, excluding debt retirement costs, representing a 16% to 19% increase for the full year. The company still expects comparable store sales for the fourth quarter to range from 2.0% to 4.0% and full year comparable store sales to range from flat to 2.0%. Full year 2010 sales and earnings results and fiscal 2011 earnings guidance are expected to be released in March 2011. GameStop will be presenting at the CES mini conference hosted by Credit Suisse and Oppenheimer & Co. on Friday, January 7, 2011 at 9am PT in Las Vegas, NV. This presentation will be available via dial-in at 1-888-539-3679 or by visiting http://investor.gamestop.com/. About GameStop GameStop Corp. (NYSE: GME), a Fortune 500 and S&P 500 company headquartered in Grapevine, Texas, is the world's largest multi-channel video game retailer. GameStop's retail network and family of brands include 6,606 company-operated stores in 17 countries worldwide, www.Kongregate.com, a leading browser-based game site with more than 10 million monthly unique visitors, and Game Informer(R) magazine, the leading multi-platform video game publication. The company also sells video games and related merchandise at www.GameStop.com. General information on GameStop Corp. can be obtained at the company's corporate website. Safe Harbor This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, the outlook for fiscal 2010, future financial and operating results, projected store openings, the company's plans, objectives, expectations and intentions, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of GameStop's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. GameStop undertakes no obligation to publicly update or revise any forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the inability to obtain sufficient quantities of product to meet consumer demand, including console hardware; the timing of release of video game titles for next generation consoles; the risks associated with expanded international operations and the integration of acquisitions; the impact of increased competition and changing technology, including alternative methods of distribution, in the video game industry; and economic, regulatory and other events, including litigation, that could reduce or impact consumer demand or affect the company's business. Additional factors that could cause GameStop's results to differ materially from those described in the forward-looking statements can be found in GameStop's Annual Report on Form 10-K for the fiscal year ended January 30, 2010 filed with the SEC and available at the SEC's Internet site at http://www.sec.gov or http://investor.gamestop.com.   Schedule IGameStop Corp.Sales Mix                     9 Weeks Ended9 Weeks EndedJan. 1, 2011Jan. 2, 2010PercentPercentSalesof TotalSalesof Total Sales (in millions):   New video game hardware $ 670.0 22.2 % $ 623.6 21.8 % New video game software 1,336.8 44.3 % 1,294.6 45.2 % Used video game products 606.5 20.1 % 596.5 20.8 % Other 404.8 13.4 % 349.2 12.2 %         Total $ 3,018.1 100.0 % $ 2,863.9 100.0 % Media Contact:Chris OliveraVice President,Corporate CommunicationsGameStop Corp.(817) 424-2130orInvestor Contact:Matt HodgesDirector,Investor RelationsGameStop Corp.(817) 424-2130