Holiday Comparable Store Sales Increase 23.9% Fiscal 2006 Earnings Guidance Raised

GRAPEVINE, Texas--(BUSINESS WIRE)--Jan. 4, 2007--GameStop Corp. (NYSE:GME)(NYSE:GME.B), the world's largest video game and entertainment software retailer, today reported sales results for the nine-week holiday period ending December 30, 2006.

Total sales for the nine weeks ended December 30, 2006 were $1,732.8 million, a 29% increase from the prior year holiday period of $1,342.2 million. Comparable store sales for the holiday period increased 23.9%.

R. Richard Fontaine, Chairman and Chief Executive Officer, commented, "Without question this holiday season was one of the most successful ever for GameStop. I am particularly pleased with the robust sales of hardware systems, even in the face of ongoing shortages of PlayStation 3 and Wii. The diversity of desired products made this a real 'game specialist's holiday'. It was a season that rewarded the knowledge and advice given by our seasoned managers and game playing associates throughout the company."

"We have never had a holiday season with more hardware choices or more accessory options, and perhaps what is most encouraging is that, we are seeing a broader base of customers enjoying the gaming experience than ever before."

"In addition, we sold a record number of GameStop gift cards. More gift cards, with a higher average value per card, will help to ensure that we close out the fiscal year with real momentum," concluded Mr. Fontaine.

The top five new video games sold during the holiday period were GEARS OF WAR from Microsoft, FINAL FANTASY XII from Square Enix, LEGEND OF ZELDA: TWILIGHT PRINCESS from Nintendo, GUITAR HERO 2 from Activision, and WWE SMACKDOWN vs. RAW 2007 from THQ.

Updated Guidance

Based primarily on exceptionally strong hardware sales during the holiday period, GameStop is increasing its comparable store sales guidance for the fourth quarter of 2006 to range from 22.0% to 23.0%. Full year comparable store sales are now expected to range from 10.0% to 10.5%.

GameStop is also increasing its fourth quarter diluted earnings per share guidance to range from $1.58 to $1.60. Full year earnings per diluted share are now forecasted to range from $2.03 to $2.05.

Note that guidance does not include merger costs related to the business combination with EB Games, which were $0.05 per diluted share for fiscal 2006, or debt retirement costs, which could range from $0.03 to $0.05 per diluted share for fiscal 2006.

Full year 2006 sales and earnings results and fiscal 2007 earnings guidance are expected to be released in mid-March 2007.

About GameStop Corp.

Headquartered in Grapevine, TX, GameStop Corp. is the world's largest video game and entertainment software retailer. The company operates 4,633 retail stores across the United States and in fourteen countries worldwide. The company also owns two e-commerce sites, GameStop.com and EBgames.com, and Game Informer(R) magazine, a leading multi-platform video game publication. GameStop Corp. sells new and used video game software, hardware and accessories for next generation video game systems from Sony, Nintendo, and Microsoft. In addition, the company sells PC entertainment software, related accessories and other merchandise. General information on GameStop Corp. can be obtained at the company's corporate website: http://www.gamestop.com/corporate.

Safe Harbor

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the financial and operating results for the fourth quarter and full year of fiscal 2006, 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. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the risk that the cost savings and other synergies from the combination with Electronics Boutique may not be fully realized or may take longer to realize than expected; the inability to obtain sufficient quantities of product to meet consumer demand, including Sony's PlayStation 3 and Nintendo's Wii; the timing of release of video game titles for next generation consoles; and economic and other events that could reduce or impact consumer demand. 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 28, 2006 filed with the SEC and available at the SEC's Internet site at http://www.sec.gov.

                            GameStop Corp.
                           Retail Sales Mix
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                                        9 weeks           9 weeks
                                         Ended             Ended
                                   December 30, 2006 December 31, 2005
                                   ----------------- -----------------
New video game hardware                        27.6%             20.1%
New video game software                        40.2%             43.9%
Used video game products                       17.5%             19.4%
Other                                          14.7%             16.6%

CONTACT: Media Contact:
Chris Olivera
Divisional Vice President,
Corporate Communications
GameStop Corp.
(817) 424-2130
or
Investor Contact:
David W. Carlson
Executive Vice President &
Chief Financial Officer
GameStop Corp.
(817) 424-2130

SOURCE: GameStop Corp.