GameStop 2011 Annual Report Download - page 19

• the competitive environment in the electronic game industry;
• the growth of mobile, social and browser gaming;
• our ability to open and operate new stores;
• our ability to attract and retain qualified personnel;
• our ability to effectively integrate acquired companies, including digital gaming and technology-based
companies that are outside of the Company’s historical operating expertise;
• the impact and costs of litigation and regulatory compliance;
• unanticipated litigation results, including third party litigation;
• the risks involved with our international operations, including continued efforts to consolidate back-office
support and close under-performing stores; 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 $33 billion in 2011 in the parts of the
world in which we operate. According to NPD Group, Inc., a market research firm (the “NPD Group”), the
electronic game industry was an approximately $17.0 billion market in the United States in 2011, the majority of
which was attributable to video game products, excluding sales of used video game products. International
Development Group, a market research firm (“IDG”), estimates that retail sales of video game hardware and
software and PC entertainment software totaled approximately $13.5 billion in Europe in 2011. For 2011, the
NPD Group reported that video game retail sales were approximately $1.5 billion in Canada and $1.5 billion in
the Australian market.
Based on internal estimates compiled from a group of expert third-party sources, we believe the North
American market for digital game sales, including mobile, social, console and PC games, was approximately
$6 billion in 2011 and this market is expected to grow to approximately $10.6 billion by 2015.
New Video Game Products. The Entertainment Software Association (“ESA”) estimates that 65% of all
American households play video or computer games. We expect the following trends in sales of video game
products:
•Video Game Hardware. Today’s gaming consoles include the Sony PlayStation 3, the Nintendo Wii and
Microsoft Xbox 360, which all launched between 2005 and 2007. These console technologies have
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