GameStop 2007 Annual Report Download - page 8

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the essence of the business under the heading of video
games?” More products that are, strictly speaking, not
games are adopting game technology to broaden the
market as never before.
Expanding Demographics. In 2007, we experienced
two exciting and signifi cant demographic trends that
will dramatically broaden the base of game players into
the future: more girls and women are now playing video
games, with industry fi gures showing that 38% of game
players are female and gaming is becoming a family
activity. In fact, the fastest growth category in 2007 was
FAMILY ENTERTAINMENT, which grew an amazing 141%.
Platform Proliferation. Never before have there been as
many viable hardware choices – each with an expanding
number of software and accessory options. It is not just
the Xbox 360, but the pro or elite unit? The PS3 – the 40
gig or 80 gig model? The Wii – do you need the remote,
the Nunchuck, the Zapper? Which portable should I buy,
the Nintendo DS or the Sony PSP? Even after 8 years in
the market, the still very hot PS2 – would you like that
in silver or black, wireless or tethered controller? More
products with more purchasing decisions need better
informed sales people--GameStop associates.
Converging trends. The game experience has become
richer than ever – not only because the power of the new
machines are in the class of “supercomputers”, but due to
the games increased visual “wow factor” when combined
with an HD television monitor. In addition, online time
cards and/or points cards are among our add-on best
sellers, as online game play and massive multiplayer
gaming is emerging at a level never formerly anticipated.
THE FUTURE
Science fi ction writer Arthur C. Clarke once observed, “If
we have learned one thing from the history of invention
and discovery, it is that, in the long run (and often in the
short one) the most daring prophecies seem laughably
conservative.” When GameStop was formed 11 years
ago, there were those that prophesized a market too
narrow and too limited to be successful in the long run.
We didn’t see the future through that lens. While we
certainly could not have forecast the amazing growth,
the huge R&D investments, and the cultural infl uence of
video gaming, we were sure that by combining constantly
evolving technology with creativity, video gaming was
way beyond a trend and would become the most dynamic
of all the entertainment options. And there is more to
come—much more.
GameStop is at the forefront of a market that is growing
in all directions and we have been instrumental in
moving video games into the mainstream.
The combination of demographic reach, our unique
business model, stores in a wide range of locations (malls,
strip centers, inner cities, suburbs, metro markets, and
primary, secondary, and tertiary population centers) and
amazing products that are appealing to an ever larger
spectrum of players, adds up to a business well positioned
to continue to grow, gain market share and produce results.
That is GameStop.
Thank you again for your support of GameStop and your
belief in the value and future of our business.
R. Richard Fontaine
Chief Executive Offi cer and Chairman of the Board