*Q2 share 23 cents verses 34 cents a year ago*Q2 rev down 3.7 percent, slightly ahead of estimates*Cuts fiscal 2009 earnings forecastNEW YORK, Aug 20 (Reuters) - GameStop Corp (GME.N), the video game retailer, on Thursday said second-quarter profit fell 32 percent, as a drop in new console sales and the absence of any breakout video game hits combined to hurt sales.The biggest U.S. video game retailer also cut its 2009 forecast, citing concerns about consumer spending and the delay of some key video game titles.For the second quarter, earnings fell to $38.7 million, or 23 cents a share, down from $57.2 million, or 34 cents a share, in the period a year earlier.Sales fell 3.7 percent to $1.74 billion, the company said, a figure that was roughly above analysts' estimates of $1.73 billion, as compiled by Reuters Estimates.Chief Executive Daniel DeMatteo said in a statement that "as the new title release schedule improves, we expect positive earnings growth in the back half of the year." Among the new titles, Call of Duty: Modern Warfare 2, Assassin's Creed 2 and Halo 3: ODST are expected to be some of the most popular.Nonetheless, some key titles have been pushed back, and with consumers unlikely to go on a spending spree, the company cut its forecast for fiscal 2009 earnings. It is now forecasting earnings in a range of $2.40 a share to $2.64 a share, down from a previous forecast of $2.83 to $2.93. (Reporting by Paul Thomasch, editing by Gerald E. McCormick)http://www.reuters.com/article/marketsNews/idINN203780842009...The main thing we can take from this is that things haven't gotten better yet. With a large earnings drop, shares have so far dropped over 5% to below $24 a share today. Most of this drop is from lower consumer spending, which always comes during hard economic times, but this time it's also from the delaying of key titles that would help push sales up. When these video games come out I bet that things should at least do a tad better this year. They did cut forecasts for this year more than I was expecting, but in the long term I think it's fine.When the economy gets better in the next few years I think Gamestop will benefit greatly with higher video game sales. I still do think the key driver for this company is by opening more stores up internationally, so that they can be opened up to new markets with more opportunities. Also, with companies such as Activision coming out with a giant new slate of games Gamestop is in the perfect position to benifit from these game releases.I still think Gamestop has a huge potential for more growth in the future, but even if they aren't able to grow as much, these low prices also make Gamestop a value stock. Even simple numbers such as the ttm PE, forward PE, PS, PB, and PCF ratios are a ton lower than in the past few years standing currently at 9.7, 7.7, 0.4, 1.6, and 8.3 respectively. The low price right now should provide shareholders well even if there is slow growth in the future.I'm still long Gamestop. I picked up shares today at $23.25 and believe that as long as Gamestop can maneuver through its competition and as long as online downloading stays ineficient, Gamestop should be a winner in the long-term.Best,Aaron
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