GDC Europe 2011 - twvideo01.ubm-us.nettwvideo01.ubm-us.net/.../gdceurope2011/...GameStops_Digital_Strategy.pdf · GameStop plans to lead in the immersive di it l idigital experience

GDC Europe 2011GDC Europe 2011GDC Europe 2011GDC Europe 2011Steve Nix GM Digital DistributionSteve Nix, GM Digital Distribution

1

GameStop

GameStop

Global Store Base

United States Store Base: 4,434

European Store Base: 1,385

Italy 377yIreland 58France 383G 20Germany 205Spain 130Nordic 176 Total Stores:

Canadian Store Base: 346

Australian Store Base: 408

Total Stores:6,573

A Few Games….

Retail?!?

PC Games and Media

The PC Experience

GameStop Digital Venturesp g

Mergers and Acquisitions Mergers and Acquisitions

Investments

Strategic Partnerships

Chris Petrovic - MD

Acquisition of Impulse

A Shift in Focus

2006

2008-20062006

20082008--

2000 2003

2006

Consolidation & International

Develop/ Implement Strategic Plan for Changing Video Game Landscape

200320032003

2000

HypergrowthOpened 859 stores f 2003 2005

& International ExpansionEB Games merger (April 2006)Opened 658 stores

Game Landscape

In store DLC

Loyalty program rollout

200020002000

Developed Buy/ Sell/ Trade Model

from 2003-2005p

internationally from 2005-2007Acquired Micromania (2008)

E-com transformation

Multichannel

20002000

11

Acquired Funcoland

The Digital Universegh Retail of DLC

Gro

wth

DM

a

MobileMobile+20%+20% - Kongregate

ArcadeDLCDLC+24%+24%

EE--

Gam

e I

Retail of DLC

op.c

om

Digital

agazine

Online+10%Online+10%

SocialSocial

- Kongregate

- POSA

EECommerceCommerce

+15%+15%

nformerG

ameS

to

PC PC DownloadsDownloads

+9%+9%

= $1 BillionNorth America Industry

Distance From Our Core

+7%+7%ImpulsePOSA

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North America Industry

Source: GME market model

Digital Sales Forecast

Total Digital Receipts(in billions)

$1.50 $1.4

$1.6 (in billions)

$0.75

$1.08

$0 8

$1.0

$1.2

$0.30

$0.50

$

$0.4

$0.6

$0.8

$-

$0.2

2010 2011 2012 2013 20142010 2011 2012 2013 2014

PC Download Opportunity

Global PC Downloads

$1 9B$1 9B

$3.4B

$1.9B$1.9B

$2.2B

$0 7B$0 7B$1.5B$1.5B

$1.5B$1.5B

2010 2014ENorth America International

$0.7B$0.7B

North America International

Source: GME market model

Impulse

Client provides download, patches, updates and DLC

1 200 games and growing rapidly 1,200 games and growing rapidly

Customer friendly DRM

Analytics and publisher reporting tools

Impulse Reactor

In-game Software Development Kit Community – achievements, cloud storage,

chat Multiplayer lobbies Account management Account management More to be announced with re-launch

REACTOR

Impulse In-Store Integration

Payment Options Discovery Catalog Games Catalog Games PowerUp Rewards

PowerUp Rewards Loyalty Program™

High velocity implementation began May 2010

p y y g

11 million members added since October and growing to 12M-15M by year end

P U R d d th t d t PowerUp Rewards and the customer data asset are the bridge to new businesses and market share growth

Spend more: PUR members average >3x the $ spend of non-members

Engage more: >100mm games now Engage more: >100mm games now trackable in game libraries

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AAA PC Publishing

More PC titles in the Pipeline More PC Focus Integrated Marketing with Console Integrated Marketing with Console Dramatically Increased Messaging

The Independent Developer

Digital Summary

Digital is growing and is complimentary to console gaming

GameStop plans to lead in the immersive di it l idigital experience

We have leaders, investments and roadmaps i l t t t tin place to execute our strategy

Our digital initiatives will drive future revenue growth and earningsgrowth and earnings

Thank You!