Monday, May 27, 2013

Current Events: GameStop.


             GameStop: Xbox one will be priced less than the Xbox 360

  5-24-2013                                                                 Google News                                                                      


Hard as it may be to believe, GameStop executives believe that both the Microsoft Xbox One as well as the Sony PlayStation 4 will be priced less than their predecessors—and fewer people will buy them, too.
GameStop executives told analysts that their “market model,” based on their own estimates as well as they’ve been told by Microsoft and Sony, call for the next-generation systems to have a “lower opening price point than they did last cycle,” Robert Lloyd, the chief financial officer of  GameStop, told analysts on Thursday. The same model assumes that the adoption rate for both consoles will be between 80 to 85 percent of the past cycle, he said, and that the attach rate for software will be about 80 percent.
That means, Lloyd said, that the retailer expects 2013 sales will decline versus 2012, then pick up in 2013 as the new consoles launches gain traction, Lloyd said. In 2014, they will return to “very healthy growth,” he said.
We believe that the next-gen systems will have a lower opening price point than they did last cycle." —Robert Lloyd, GameStop.

Summarize:
GameStop managers believe that both Microsoft Xbox one and the Sony PlayStation 4 their price will be less than their predecessors. And fewer people will buy them too. And Robert Lloyd, the chief financial officer of GameStop, told analysts on Thursday that the same model assumes that the adoption rate for both consoles will be between 80 to 85 % of the past group. And he said that the retailer expects 2013 sales will be lower in 2012. And they will return very healthy growth.

Vocabulary Words:
1. Executives: managers.
2. Predecessors: a person who gives a position to another in an office.
3. Attach: respect.
4. Estimates: to form an opinion of judge.
5. Financial: cash or information about a company.

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