GameStop 2007 Annual Report Download - page 18

private limited liability company (“FRS”). FRS operates approximately 50 record stores in Norway and also
operates office and warehouse facilities in Oslo, Norway. During fiscal 2008, the Company intends to convert these
stores into video game stores with an inventory assortment similar to its other stores in Norway. The Company will
include the results of operations of FRS, which are not expected to be material, in its financial statements beginning
on the closing date of the acquisition, which is expected to be April 5, 2008.
Disclosure Regarding Forward-looking Statements
This report on Form 10-K and other oral and written statements made by the Company to the public contain
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The
forward-looking statements involve a number of risks and uncertainties. A number of factors could cause our actual
results, performance, achievements or industry results to be materially different from any future results, perfor-
mance or achievements expressed or implied by these forward-looking statements. These factors include, but are
not limited to:
• our reliance on suppliers and vendors for sufficient quantities of their products and for new product releases;
• economic conditions affecting the electronic game industry and the markets in which GameStop operates;
• the competitive environment in the electronic game industry;
• our ability to open and operate new stores;
• our ability to attract and retain qualified personnel;
• the impact and costs of litigation and regulatory compliance;
• unanticipated litigation results;
• the risks involved with our international operations;
• alternate sources of distribution of video game software; and
• other factors described in this Form 10-K, including those set forth under the caption, “Item 1A. Risk
Factors.”
In some cases, forward-looking statements can be identified by the use of terms such as “anticipates,”
“believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “will,”
“should,” “seeks,” “pro forma” or similar expressions. These statements are only predictions based on current
expectations and assumptions and involve known and unknown risks, uncertainties and other factors that may cause
our or our industry’s actual results, levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed or implied by such forward-looking
statements. You should not place undue reliance on these forward-looking statements.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or achievements. We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise after the date of this Form 10-K. In light of these risks and uncertainties, the forward-looking events and
circumstances contained in this Form 10-K may not occur, causing actual results to differ materially from those
anticipated or implied by our forward-looking statements.
Industry Background
Based upon estimates compiled by various market research firms, management estimates that the combined
market for video game products and PC entertainment software exceeded $36 billion in 2007 in the countries in
which we operate. According to NPD Group, Inc., a market research firm (“the NPD Group”), the electronic game
industry was an approximately $18.6 billion market in the United States in 2007. Of this $18.6 billion market,
approximately $17.7 billion was attributable to video game products, excluding sales of used video game products,
and approximately $910 million was attributable to PC entertainment software. International Development Group,
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