GameStop 2011 Annual Report Download - page 12

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Our free-to-play gaming site www.Kongregate.com also experienced growth in 2011. Revenue generated through advertising
and the purchase of Kreds, Kongregate’s unique currency used to purchase in-game items, increased more than 99 percent in
2011. Traffi c to the site also grew signifi cantly with 39 percent more users in January 2012 versus January 2011.
Mobile Initiatives With the widespread appeal of mobile gaming, we recognized a signifi cant opportunity to enhance our
product offerings. For example, Kongregate Arcade, our Android app that launched in January, was downloaded more than
one million times in 2011.
Recognizing a natural fi t with our buy-sell-trade model, we began accepting trades of iPod®, iPhone® and iPad® devices in all U.S.
stores in September. Customers have shown strong enthusiasm for the program, pushing mobile device trades to more than fi ve
percent of total trades in the fourth quarter. With the success of the trade program, we have been able to sell refurbished
devices in some of our stores; more stores will be added as inventory levels increase.
Beginning in October, select stores began selling an assortment of gaming-certifi ed Android tablets loaded with Kongregate
Arcade, Game Informer Digital and a selection of free digital games. We released the fi rst ever Bluetooth® gaming controller
for tablets. Developed by GameStop’s own R&D team, this controller provides a console-like experience on a mobile device
and expands the capabilities of tablet gaming.
In December, GameStop became the fi rst retailer to showcase the new quad-core NVIDIA® Tegra® 3 processor via live demo
units of the ASUS Eee Pad Transformer Prime tablet. We took pre-orders on the Prime and quickly sold out, thanks in large part to
the fl exibility we offer customers to make any type of payment, including using trade-in credit.
With the growth of mobile initiatives such as tablet and iDevice sales, we established a new mobile business unit to manage our
expanding offerings. The team will continue to build on this foundation as they explore new avenues to deliver great games to our
customers, regardless of how and where they like to play.
10
2011 ANNUAL REPORT