GameStop's DeMatteo replaces Fontaine as CEO

Chairman to focus on overseas business, Raines is new COO

By Danny King -- Video Business, 8/29/2008

AUG. 29 | GameStop said today that CEO Richard Fontaine will step down. He has been in that position since the company was started 12 years ago.

The company, which last week reported financial results that some analysts interpreted as reflecting a loss in market share, will be replaced by longtime chief operating officer Daniel DeMatteo.

Fontaine, 66, will remain with the company, focusing on overseas operations and acquisition opportunities as executive chairman, GameStop said in a statement.

Former Home Depot executive J. Paul Raines will replace DeMatteo, 60, as COO.

Fontaine has run the largest U.S. videogame retailer since 1996, the same year DeMatteo was named COO, and oversaw the company when it was spun off from majority shareholder Barnes & Noble four years ago.

"Dan's move into the CEO role will assure the continuity of performance that has been a GameStop hallmark," Fontaine said in the statement. "His leadership, drive and insight into the videogame business and its huge upside potential make him the obvious choice as CEO."

Last week, GameStop said its earnings for the quarter ended Aug. 2 more than doubled on a 35% jump in sales from a year earlier as the company capitalized on a booming U.S. videogames industry.

Still, the stock fell after the results were announced as some analysts suggested that same-store sales growth, which trailed this year's industry growth figures reported by NPD Group, suggested that the company was losing market share to online retailers such as Amazon.com and general merchandisers including Wal-Mart.