NEW YORK (TheStreet) --"Pokemon Go" has taken the gaming world by storm and retailers have been seeing an increase in business due to the game's popularity. GameStop (GME) - Get Report CEO Paul Raines joined CNBC'S "Squawk on the Street" Monday morning to discuss what the game has meant for the business, and the future of the retail gaming giant.
"We surveyed our stores, 462 of them were either "Pokemon Go" stops, or "PokeGyms," and our sales in those stores are up 100% this weekend alone, and of course our Pokemon merchandise sales are also up significantly," Raines said.
When asked why GameStop hasn't made a stronger push in getting into the actual game itself, Raines expressed confidence in the company's current strategy.
"Our sales have been rocketing because of Pokemon already. We have over 100% growth in our Pokemon collectibles, and we are the largest distributor of Pokemon video games and collectibles in the world," Raines explained. The CEO conveyed further assurance in the company's ability to profit without being physically in the game.
Looking to the future of GameStop, there have been those critical about Raines and his team, most notably due the stock being down 40% when looking at a 12-month track. However, Raines looked to put any worries at rest as he attributed the dip to market data, while also pointing out a record in terms net income last year.
"We believe in our strategy and management team and we've pointed out to our investors that our continued strategy is to further drive dominance in the physical gaming, emerging growth categories like digital gaming collectibles, and our technology brand segment, which is our AT&T (T) partnership. If we can do that we think that very positive for shares," Raines said.
Finally, when looking to the future Raines relayed a good amount of enthusiasm when speaking to the company's partnership with Sony (SNE), and the continued development of Virtual Reality.
"We will have the dominant allocation of Sony VR products. Virtual reality will be a very large market, in the billions of dollars and we will dominate the Sony part of that launch. We really believe that Sony VR will be the dominant virtual reality platform and we are getting a very strong allocation, and we remain very bullish on what they can mean for us," Raines concluded.
Shares of GameStop are higher 5.11% to $29.44 on Monday morning.
Separately, TheStreet Ratings rates GameStop as a "Hold" with a score of "C+". The primary factors that have impacted TheStreet Ratings rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GME