GameStop 2011 Annual Report Download - page 28

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www.gameinformer.com. English version results from Game Informer operations are included in the United
States segment where the majority of subscriptions and sales are generated. Other international version results
from Game Informer operations are included in the segment in which the sales are generated.
E-Commerce
We operate several electronic commerce Web sites in various countries, including 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, that allow our customers to buy video game
products and other merchandise online and, in some cases, allow customers to reserve merchandise and then pick
it up in stores. The sites also offer customers information and content about available games, release dates for
upcoming games, and access to store information, such as location and product availability. E-commerce results
are included in the geographic segment where the sales originate.
Kongregate
In August 2010, we purchased Kongregate Inc., the operator of online video gaming site
www.kongregate.com, which offers free-to-play video games to over 15 million unique visitors per month.
Kongregate earns revenues from in-game advertising and offering game players the opportunity to advance their
game play with in-game transactions (called micro-transactions). Kongregate has a proprietary virtual currency
called Kreds which can be purchased and then used to pay for in-game transactions. Over 14,000 developers have
uploaded more than 50,000 games to Kongregate.com that have been played nearly 2 billion times.
Spawn Labs
In March 2011, we purchased Spawn Labs, Inc. (“Spawn Labs”), a streaming technology company. Spawn
Labs brings to the Company patented technology and a talented team of technologists with unique game
streaming and virtualization expertise. It adds to the Company’s growing digital game products and services.
Impulse
In May 2011, we purchased Impulse Inc. (“Impulse”), a digital PC distribution platform available at
www.gamestop.com/pcgames, which offers PC video games for purchase. Impulse allows users to quickly and
easily find their favorite games from a library of over 1,100 titles and download them to their Internet-connected
devices.
Advertising
Our stores are primarily located in high traffic, high visibility areas of regional shopping malls, strip centers
and pedestrian shopping areas. Given the high foot traffic drawn past the stores themselves, we use in-store
marketing efforts such as window displays and “coming soon” signs to attract customers, as well as to promote
used video game products. Inside the stores, we feature selected products through the use of vendor displays,
“coming soon” or preview videos, signs, catalogs, point-of-purchase materials and end-cap displays. These
advertising efforts are designed to increase the initial sales of new titles upon their release.
On a global basis, we receive cooperative advertising and market development funds from manufacturers,
distributors, software publishers and accessory suppliers to promote their respective products. Generally, vendors
agree to purchase advertising space in one of our advertising vehicles. Once we run the advertising, the vendor
pays to us an agreed amount.
In fiscal 2010, we launched our new PowerUp Rewards loyalty program in the United States which gives
our customers the ability to sign-up for a free or paid membership that offers points earned on purchases in our
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