GameStop, during its earnings call to discuss third quarter results, provided an update on its progress into the booming tablets market. As we've reported on previously, GameStop recently began selling Android tablets - the three tablets all run on the Android operating system and come pre-installed with 7 games; 4 of the 7 games support the wireless Bluetooth controller for a more console-like experience. On the call today, GameStop President Tony Bartel said, "We've been very pleased with our tablet sales and are executing our second replenishment order."
He added, "We believe we can drive the adoption of Android tablets as a great gaming device and are excited to participate in a non-eReader U.S. tablet market that Gartner estimates at over $1.5 billion in 2012."
So all seems to be going well in the tablets space so far for GameStop. CEO Paul Raines also noted that GameStop's plan to allow trade-in of iDevices has been a "key accelerator" of tablets in their stores. "The trading of pre-owned electronic devices feels natural and is convenient to consumers. We estimate that there are over $7 billion of used iDevices in homes in the U.S." he added, noting the potential for GameStop to capitalize on.
He continued, "We've created an innovative business model by focusing on gamers and thinking outside the box... Tablet manufacturers and game publishers are excited by the possibilities we have brought to the market and are meeting with GameStop teams weekly to create innovative products to launch."
Raines believes that GameStop can drive newer tablets into homes as they come out by enabling customers to trade up as technology improves. "The tablets we carry are eligible for trade-in at our stores as newer technology tablets become available. We're only beginning to do some work on market models of what the upgrade cycle on tablets might look like, and how we can merchandize and launch immersive tablet games in store and online and how big a refurbished tablet business could be," he said.
