Q4
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GameStop enjoys $9.08 billion in sales in FY2009, $377 million profit
GameStop made bank even in the bad economy. Reporting its fourth quarter and fiscal 2009 (ending January 20, 2010) results today, the retail juggernaut revealed it had $3.52 billion and $9.08 billion in sales during the quarter and full year, respectively. As for profits -- after taxes, depreciation, amortization, et al. -- the company earned $215.9 million for the quarter and $377.3 million for the year. CEO Daniel DeMatteo noted it was the company's second highest earnings year, "in spite of the weak worldwide economic environment" -- no kidding. New software sales accounted for 41.1 percent ($3.7 billion) of the company's total sales, while the sweet recycled nectar of used games came in second with 26.4 percent ($2.4 billion) -- the rest was new hardware and "other." GameStop expects its earnings to grow 14 to 18 percent in the coming year.
TiVo posts $10.2m loss, remains on deathwatch
We've had TiVo firmly on deathwatch since 2005, and although the company's shares have recently surged with the launch of the TiVo Premiere and another legal victory over Echostar, things are still looking somewhat bleak: the Q4 numbers are in, and everyone's favorite DVR company just posted a $10.2m loss. Why? For the same reason that's plagued the company for five damn years now: it's hard to sign up new subscribers when the cable company offers a similar good-enough product for less money, especially when TiVo can't access cable VOD. And let's be brutally honest here: we love TiVo and we're more than excited to get our Premiere review units, but we don't think a revised interface is going to stem the tide -- almost every feature of the Premiere is available on the TiVo HD, after all. We've offered up our suggestions on how to re-energize the company in the past -- that new QWERTY remote is a great start -- but until TiVo stops playing ball with the same cable companies that actively try and cut it off at the knees and starts going for the jugular with features and pricing, we don't think things are going to get any better.
Activision reports $113m in profits for 2009; 2010 game plan is predictable
Today Activision Blizzard reported the financial results of its December quarter and the entire 2009 calendar year. For the year, Activision recorded a net income of $113 million, a modest turnaround from the $107 million in net losses for the company in 2008. Led by sales of Modern Warfare 2, all signs -- at least, this one -- pointed to an outstanding Q4 for the publisher. However, figures released today indicate that Activision actually posted a $286 million net loss during the period. "Despite these challenging times, in 2010 we remain focused on expanding operating margins by growing our high-margin digital/online revenues, directing our resources to the largest and most profitable opportunities and realizing operational efficiencies globally," CEO Bobby Kotick said. "In calendar year 2010, we expect our net earnings and operating margin growth will be driven by our product slate that includes Blizzard Entertainment's Starcraft II and the World of Warcraft expansion pack, Cataclysm, as well as a diversified lineup based on Activision Publishing's best-selling franchises including Call of Duty, Guitar Hero and Tony Hawk, together with other well-known titles such as True Crime, Spider-Man and Bakugan." While few details were give about Activision's pending slate of sequels, spinoffs and possible reboots, Mike Griffith, President and CEO of Activision Publishing, did share a few words about the next True Crime game. "We'll be releasing a game in the $4 billion action genre, based on our True Crime franchise," Griffith said. "The game blends intense Hollywood-style driving with martial arts combat and shootouts to deliver an Asian cinema-inspired action thriller. This is a big open-world action game that looks especially strong." Griffith also confirmed that a new 007 game is still in the works for 2010. Additionally, Activision noted that two new IPs are in development for its 2010 lineup and assured that additional DLC will continue to be released for Guitar Hero 5 (and presumably Band Hero), as well as for DJ Hero. The next installments in both music game franchises, Guitar Hero and DJ Hero, are due in "the back half of the year," according Griffith. Activision also announced that it has ceased developing new Guitar Hero games for the PlayStation 2 platform. Aw, shucks.
HP increases lead over Acer in worldwide laptop shipments
Acer pulled closer to HP than ever in the third quarter of 2009, when it shipped 8.86 million laptops compared to HP's 9.91 million, but it looks like things swung well back in the other direction during the fourth quarter. According to DigiTimes, HP shipped a whopping 11.38 million laptops worldwide in Q4, while Acer moved 9.5 million units during the same time period -- an sizable increase in itself, but likely not enough to cause too much celebration at Acer HQ. As you might suspect, the holiday shopping season was largely responsible for the jump in sales from both companies, with strong sales in North America in particular said to be the main reason behind HP's widening lead.
Intel profits recover to $2.3 billion in Q4 2009, company describes it as 875 percent jump
Yo Intel, when your 2008 fourth quarter was one of the worst you ever recorded, it's slightly, just slightly, facetious to go trumpeting an 875 percent improvement in your 2009 fortunes. The self-appointed chipmaking rock star has clocked up $10.6 billion in revenues for the last quarter, which filters down to $2.3 billion in pure, unadulterated, mother-loving profit. That's good and indeed technically nearly nine times what the company achieved in the same period the previous year -- we'd just appreciate this to be represented as the recovery it is, rather than some major leap forward in the face of a global financial meltdown. Either way, the Santa Clara checkbook is now well and truly balanced, even if it would've looked fatter still but for the small matter of a $1.25 billion settlement reflected in last quarter's results.
iPhone, iPod touch leading product search for Christmas
This is an interesting little statistic, but it could be very telling about what's going on in terms of sales this holiday season. 9to5Mac says that over in the UK, the iPhone and the iPod touch are the current most searched-for products this holiday. iPhone made up 1.75 percent of all product searches last week, and 14% of mobile phone product searches. Meanwhile, the iPod touch was in second place at 1.29 percent, and the iPod nano was actually third, at .5 percent. Over three percent, then, of all product searches in the UK were for Apple's handhelds. Of course, just because one in 34 people are searching for an iPhone or iPod doesn't mean that they'll be huge gifts necessarily -- maybe the searching just means that they want one, not that they'll be getting one. But there's no question that as big as Apple's 4th quarter has been so far, it's going to get even bigger, in the UK and probably everywhere else as well.
Overall Mac sales up 21%, desktops up 74% year over year
There's probably a number of reasons why this might have happened (and we're sure you can come up with more than we can), but nevertheless, here you go: overall Mac sales are up by 21 percent in October and November since last year at the same time, according to Gene Munster (not pictured), analyst at Piper Jaffray. Desktop Mac sales are especially huge, with the rise as high as 74%, which seems like a typo next to MacBook and MacBook Pro increases of just five percent. In fact, those gigantic desktop sales, some reason, might actually be the reason behind the recent iMac delays. At any rate, no matter why, Apple is making a boatload on Macs this quarter already. Even without the bulk of the holiday season, the desktops were already flying off the shelves in huge numbers compared to last year.
Join TUAW for Apple Q4 earnings call liveblog at 5 PM EDT today
Time flies when you're having fun -- it seems like it was only a few weeks ago that we were enjoying the Q3 earnings report from Apple, Inc. Well, today the wizards of Cupertino are on the phone again with top Wall Street analysts to report how the company did during the fourth quarter (July - September, 2009). Many analysts are expecting Apple to continue its recession-defying high wire act, with an analyst poll by Thomson Reuters Financial showing an earnings forecast of US$1.42 per share. That's 13 percent over the same quarter a year ago, and higher than Apple's own forecast of US$1.18 - US$1.23 per share. As usual, we'll be covering the earnings call via CoverItLive. Drop by TUAW at approximately 5 PM EDT (2 PM PDT) and join us. Bring your questions, and we'll supply the news and commentary.
Hooray! UK retailer deems Q4 release schedule 'sensible'
Speaking with GI.biz, UK retailer SimplyGames.com's director Neil Muspratt deems that the fourth quarter's software release schedule is the "most sensibly divided" one he's seen in 20 years. He believes that Modern Warfare 2 scared a significant number of games out of the Q4 arena, but still thinks the quarter will be important in terms of increasing the install base of all three major consoles following the recent price drops.Muspratt, stating the obvious, notes that the benefit of console sales being the focus for the rest of this year is that "there will be a wider audience for software" in 2010. He adds that "great products ... sell through regardless" of the time of year. We totally agree with Muspratt that Q4 2009 has an incredibly sensible release schedule. However, the first half of next year is probably the most ridiculous we've seen in 20 years.
Official: XPERIA X2 launching Q4, Windows Mobile 6.5 onboard (video)
If you've been waiting with bated breath for some real news on the XPERIA X2, wait no longer. News has just broken that the re-styled, gutted refresh of Sony Ericsson's popular (and expensive) X1 is due to hit "selected markets" in Q4. According to a post on SE's Xperiancers blog, the company is in talks with various carries right now, and will be detailing the plans in the coming weeks. Additionally, the blog delivers some info on the device itself, calling out its 8.1 megapixel camera, inclusion of a standard 4GB microSD card, and 13 pre-loaded "panels" in its reworked Windows Mobile skin (which appears to have a new SDK for the forthcoming OS update). Oh, and speaking of Windows Mobile, it'll be shipping with 6.5 onboard. To learn much, much more, check the two videos after the break. We'll also be grabbing an up close and personal hands-on with the device in a few moments, so keep your inter-set tuned to the Engadget channel.
Garmin-Asus nuvifone finally coming to America in Q4 (or so they say)
With Garmin-Asus' nüvifone G60 already on sale in Asia, it makes sense to hear that said smartphone will soon make its way over to North American soil. Of course, it also made sense to think that this thing would be launching on AT&T about forever and a day ago, so we're not holding our collective breath just yet. At any rate, Garmin recently made abundantly clear on a quarter-end conference call that the GPS-infused handset is in the final testing stages with an undisclosed amount of US carriers, and if all goes well, it'll hit the streets in Q4. What's crazy is that every last specification remains unchanged from when it was announced back in January of 2008; meanwhile, Apple has shipped two new iterations of its iPhone, Android has blown up significantly and even Motorola and Palm have seemingly resurrected themselves from the grave. Knowing all that, will anyone even bother to show up to snag one in "just a few months?"
Insomniac not backing down from crowded pre-holiday release
If we were game developers, we'd be appropriately terrified of dropping our precious labors of love into the pre-holiday retail arena -- a battlefield filled with two-ton gorillas like Assassin's Creed 2 and Modern Warfare 2. Still, Insomniac Games hasn't thought twice about the late 2009 release date of Ratchet & Clank Future: A Crack in Time -- nearly all of the company's titles hit store shelves in late fall, after all.In an interview with GamesIndustry, Insomniac director of marketing and communications Ryan Schneider explained the company has "had a lot of success" dropping its games around November. He went on to declare, "The Holiday season is still a great time to release a title." You know what else is a great time to release a title? Right now. The dust on our gaming consoles has actually started to collect its own dust.
Palm says licensing webOS "not a religious issue"
Palm had its quarterly results conference call yesterday and although CEO Jon Rubinstein and CFO Doug Jeffries kept a pretty tight lid on the future product talk, they did say that licensing webOS to third parties isn't "a religious issue for us." That's pretty vague, sure, but we can't help but immediately think back to the golden age of Palm OS, when licensees like Sony put out amazing devices like the Clie PEG-NZ90 that we've lovingly mocked up with a webOS screenshot above -- we're sure Palm's upcoming handsets will be interesting in their own right, but we'd love to see a manufacturer like HTC riff on webOS the way it's tweaking Android. Of course, Jeffries also said Palm has "no plans at this time to even talk about" licensing, so this is all just a pipe dream for now, but let's not ruin the moment, okay? Hit the read link for the full call transcript.[Via GearLog]
Strauss Zelnick discusses Q4 release assault, ponders 'chicken and egg' of it
Thursday 18 June 160-something lbs. Still need to work off that extra E3 weight. LACC food is sooo delish! Food consumed today: Nutri-Grain bar. Steak with hollandaise. One of those plasmid drinks we're thinking of tying into BioShock 2. Late afternoon. New York: my Take-Two office. Just read the VentureBeat interview published yesterday about me. Really hate that picture they used, I'm totally not working my chiseled features. Anyway, they asked me about delaying Red Dead Redemption and Mafia 2. I mean, come on, the holiday season is already packed. People will have even less cash this year. Maybe we'll get lucky and pull a GTA IV release with one of those titles? Haha, Diary. I know, we're not gonna get that lucky. Anyway, they also asked me about that EEDAR report, which says games sell better in the fourth quarter. That's good and all, but couldn't it be argued that it's a "chicken and egg problem"? Like, people buy during the holiday because that's when games come out? We'll try something a little different. Oh well, that's enough philosophy for one day. Good night, Diary.
EEDAR analyst apologizes for his report supporting the Q4 wallet drain
The latest report from research company EEDAR reveals that, despite complaints from gamers that publishers are overloading the fourth quarter every year, well-reviewed titles typically perform 15-20 percent better than games with high Metacritic released in the "off season." Don't worry, though, we expressed our discontent by calling EEDAR analyst Jesse Divnich and yelling, "What are you doing!? You're ruining everything!" Divnich apologized and said he uses GameFly to mitigate his own personal financial damage during the holidays. He wishes the numbers would show something different and recognizes a core gamer would need to increase their gaming budget by 200% during the holidays to keep up.Divnich also wanted us to note that, despite it being widely reported that his research states the PS3's library has the highest percentage of titles with an 85 or higher Metacritic score, the Xbox 360 has a larger quantity of such titles overall. Whatever, we've found a scapegoat for our empty wallets during the holidays. Divnich is the first phone call we're making to hit up for cash.
Netflix earnings call roundup: Testing Saturday shipments, 700k Blu-ray subscribers and even more streaming
All week, we've seen stats, figures and speculation based on Netflix's earnings call leaking out, and here's a few more interesting notes gathered from around the Internet for those not glued to their speakerphone Monday. Checking in to the party was always talkative analyst Michael Pachter, suggesting that the Xbox Live / Netflix combo could bring more than 1 million gamers to Netflix over the next year, with the service becoming a "gold mine" for the video rental company. At the same time, while CEO Reed Hastings touted "millions" served by Watch Instantly streams, the number of Blu-ray subs rose to 700,000, up from 500k at the beginning of December. Whether you count that as a victory for digital distribution or old school discs, those still checking their mailbox will be happy to know the company is testing Saturday shipping in certain regions...as long as the USPS keeps mailing six days a week.Read - Netflix testing weekend shippingRead - Netflix: Blu-ray adoption slow than Internet movie streaming adoptionRead - Xbox Live is proverbial gold mine for Netflix says Pachter
Citi reiterates AAPL 'buy' rating, cuts price target
Citi analyst Richard Gardner repeated the firm's "buy" recommendation for Apple stock, but reduced his estimate through 2011 to "reflect a more conservative view of consumer spending," according to the Associated Press. Gardner reduced his 12-month price target to $132 from $153. He noted "soft" iPhone shipments in the last quarter of 2008 and conservative guidance for the first quarter of 2009 as reasons behind the cut. "We view weakness as a buying opportunity," Gardner said. If Apple's stock were to drop by $7 or $8 before the company's Q1 2009 conference call on January 21, "[Citi] would be aggressive buyers." He expects the company will announce a profit of $1.42 per share for Q4 2008 during the call. AAPL was down by about $1.45 in afternoon trading. [Via Mac Observer.]
Nextar throws in free traffic updates for life on Q4-LT navigator
Nextar has been pretty steadily adding newcomers to its Q4 family of navigators, and it's not about to let up now with CES just around the corner. The latest member, the Q4-LT, touts a 4.3-inch touchscreen, built-in speaker / antenna, text-to-speech support, 2D / 3D NAVTEQ maps of the US and Canada, 1.6 million POIs, an MP3 / JPEG player, rechargeable battery and of course, free traffic updates for life. Hope you're not too fond of the feature set, though, 'cause it won't even be available for purchase until Q3 2009 for $249.99.
Take-Two: GTA franchise made $710 million this year
In a conference call today following the release of Take-Two's quarterly report, CFO Lainie Goldstein revealed the GTA franchise brought in $710 million so far this year. According to GameDaily, that aforementioned chunk of ducats would account for about 60% of the company's publishing sales. In Q4, GTA brought in $40 million, which is about 17% of the company's sales.So ... yeah. The newsflash is GTA makes lots of money for Take-Two, which clearly is a huge shock to us all. Guess it's a good thing the company locked down the Rockstar talent then, huh?
Nextar delivers Q4-01 / Q4-02 4.3-inch navigators
We get the idea that the Q4-01 and Q4-02 are simply non-MSN Direct versions of the Q4-MD we've already seen, but we'll humor you anyway. The newest duo in the Q4 lineup includes a 4.3-inch touchscreen, voice-guided directions, NAVTEQ maps, an SD card slot, multimedia player and a rechargeable Li-ion to boot. The Q4-01 stops at just 50 states, while the Q4-02 adds in maps of Canada and Puerto Rico and includes six million points of interest. Both of these should be available right now in a variety of off-the-wall retailers, with the former listed at $299 and the latter $399. Oh, but you should know the Q4-01 will go for $99.99 on Black Friday (read: this Friday) at Kohl's and Kmart. Time to knock elbows, people. The full release is after the break.
