GameStop 2011 Annual Report Download - page 18

PART I
Item 1. Business
General
GameStop Corp. (together with its predecessor companies, “GameStop,” “we,” “us,” “our,” or the
“Company”) is the world’s largest multichannel video game retailer. We sell new and used video game hardware,
physical and digital video game software, accessories, as well as 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. We also operate electronic commerce Web sites 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 leading browser-based game site; Game Informer magazine, the leading multi-platform
video game publication; Spawn Labs, a streaming technology company; and a digital PC distribution platform
available at www.gamestop.com/pcgames.
In the fiscal year ended January 28, 2012, we operated our business in the following segments: United
States, Canada, Australia and Europe. Of our 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 consists primarily of retail operations, with all stores engaged in the sale of new and used
video game systems, software and accessories, which we refer to as video game products, and PC entertainment
software and related accessories. Our used video game products provide a unique value proposition to our
customers, and our purchasing of used video game products provides our customers with an opportunity to trade
in their used video game products for store credits and apply those credits towards other merchandise, which in
turn, increases sales. We also sell various types of digital products, including network point cards, prepaid digital
and online timecards and digitally downloadable software. Our products are substantially the same regardless of
geographic location, with the primary differences in merchandise carried being the timing of release of new
products in the various segments, language translations and the timing of roll-outs of newly developed
technology enabling the sale of new products, such as digitally downloadable content. Stores in all segments are
similar in size at an average of approximately 1,400 square feet. Our corporate office and one of our distribution
facilities are housed in a 519,000 square foot facility in Grapevine, Texas.
The Company is a Delaware corporation which, through a predecessor, began operations in November 1996.
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,
performance 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;
• general economic conditions in the U.S. and internationally, and specifically, economic conditions
affecting Europe, the electronic game industry and the retail industry;
• alternate sources and means of distribution of video game software and content;
• alternate means to play video games;
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