Profile: GameStop Corp (GME)
24 Apr 2014
GameStop Corp. (GameStop), incorporated in August 2001, is a holding company. GameStop is a multichannel video game retailer. The Company sells new and used video game hardware, physical and digital video game software, accessories, as well as personal computer (PC) entertainment software and other merchandise. As of January 28, 2012, GameStop’s retail network and family of brands include 6,683 Company-operated stores in the United States, Australia, Canada and Europe, primarily under the names GameStop, EB Games and Micromania. During the fiscal year ended January 28, 2012 (fiscal 2011), it operated in four segments: United States, Canada, Australia and Europe. On March 31, 2011, it acquired Spawn Labs, Inc., a streaming technology company. In May 2011, it purchased Impulse Inc. (Impulse), a digital PC distribution platform available at www.gamestop.com/pcgames, which offers PC video games for purchase.
The Company also operates electronic commerce (e-commerce) Websites under the names www.gamestop.com, www.ebgames.com.au, www.gamestop.ca, www.gamestop.it, www.gamestop.es, www.gamestop.ie, www.gamestop.de, www.gamestop.co.uk and www.micromania.fr. The network also includes www.kongregate.com, a browser-based game site; Game Informer magazine, the multi-platform video game publication; Spawn Labs, Inc. (Spawn Labs), a streaming technology company; and a digital PC distribution platform available at www.gamestop.com/pcgames. The Company also sells various types of digital products, including network point cards, prepaid digital and online timecards and digitally downloadable software. The Company opened 285 new stores and closed 272 stores in fiscal 2011.
The Company identifies segments based on a combination of geographic areas and management responsibility. Of the GameStop’s 6,683 stores, 4,503 stores are included in the United States segment and 346, 411 and 1,423 stores are included in the Canadian, Australian and European segments, respectively. Each of the segments includes retail operations with all stores engaged in the sale of new and used video game systems and software and PC entertainment software and related accessories. Segment results for the United States include retail operations in 50 states, the District of Columbia, Guam and Puerto Rico, the electronic commerce Website www.gamestop.com, Game Informer magazine, the online video gaming Website www.kongregate.com, a digital PC game distribution platform available at www.gamestop.com/pcgames and the streaming technology company Spawn Labs. Segment results for Canada include retail and e-commerce operations in Canada and segment results for Australia include retail and e-commerce operations in Australia and New Zealand. Segment results for Europe include retail operations in 13 European countries and e-commerce operations in six countries.
In fiscal 2011, GameStop began a category of business, which it refers to as Mobile. The mobile category is buy-sell-trade of mobile devices, including gaming tablets, and related services for those devices. It began to take trades of pre-owned iPods, iPhones and iPads (which it refer to collectively as iDevices) in the Company’s the United Sates stores and in certain stores in other markets. As of January 28, 2012, the Company was selling used iDevices in approximately 460 the United Sates stores and on its Website at www.gamestop.com. The Company lso began selling a small variety of tablets in 200 of its the United Sates stores, which come preloaded with several digital games designed for play on tablets. Its United Sates segment is supported by distribution centers in Texas and Kentucky, and further supported by the use of third-party distribution centers for new release titles.
The Company distributes merchandise to its Canadian segment from distribution centers in Ontario. GameStop has a distribution center near Brisbane, Australia, which supports its Australian operations and a small distribution facility in New Zealand which supports the stores in New Zealand. European segment operations are supported by six regionally-located distribution centers. All of the Company’s segments purchase products from many of the same vendors, including Sony Corporation (Sony) and Electronic Arts, Inc. Products from certain other vendors, such as Microsoft and Nintendo are obtained either directly from the manufacturer or publisher or through distributors depending upon the particular market, in which it operates. GameStop offers the video game platforms of manufacturers, including the Sony PlayStation 3 and PlayStation Portable (PSP), Microsoft Xbox 360 and Kinect, the Nintendo DSi, DSi XL, 3DS and Wii. The Company also offers extended service agreements on video game hardware and software.
The Company generally carries over 800 stock keeping units (SKUs) of new video game across a variety of genres, including Sports, Action, Strategy, Adventure/Role Playing and Simulation. The Company provides its customers with an opportunity to trade in their used video game products in GameStop’s stores in exchange for store credits, which can be applied towards the purchase of other products, primarily new merchandise. GameStop also operates refurbishment centers in the United Sates, Canada, Australia and Europe where defective video game products can be tested, repaired, relabeled, repackaged and redistributed back to its stores. The Company sells a variety of digital currency and it has developed technology to sell downloadable content in its stores and on its United Sates Website.
The Company’s video game accessories consist primarily of controllers, memory cards and other add-ons and. It also carries strategy guides, magazines and trading cards. It carries over 300 SKUs of accessories and other products. The Company publishes Game Informer, a monthly video game magazine and Website featuring reviews of new title releases, tips and secrets about games and news regarding developments in the electronic game industry. Print and digital versions of the monthly magazine are sold through subscriptions, digitally and through displays in its stores. Game Informer is a part of the PowerUp Rewards Pro loyalty program. In fiscal 2011, the Website averaged over 2.1 million monthly visitors. Game Informer revenues are also generated through the sale of advertising space in Game Informer magazine and on www.gameinformer.com. English version results from Game Informer operations are included in the United States segment where the majority of subscriptions and sales are generated. Other international version results from Game Informer operations are included in the segment, in which the sales are generated.
Kongregate Inc. is the operator of online video gaming site www.kongregate.com , which offers free-to-play video games to over 15 million visitors per month. Kongregate earns revenues from in-game advertising and offering game players the opportunity to advance their game play with in-game transactions. Kongregate has a virtual currency called Kreds, which can be purchased and then used to pay for in-game transactions. Over 14,000 developers have uploaded more than 50,000 games to Kongregate.com that have been played nearly 2 billion times. Many of the Kongregate games are available through the Kongregate applications for use on mobile devices.
The Company competes with Wal-Mart Stores, Inc., Target Corporation, Amazon.com, Inc. Best Buy Co., Inc, Game Group plc, K-Mart, Media Markt, Carrefour and JB HiFi stores.
625 Westport Parkway
GRAPEVINE TX 76051
Company Web Links
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