GameStop 2011 Annual Report Download - page 8

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2011 IN REVIEW
Console Gaming GameStop was founded on a strong base of console gaming and, while industry-wide software sales were
down slightly, GameStop outperformed the market once again in 2011. Gaming continues to grow as a mainstream entertainment
option with 26 million consoles added to U.S. homes in 2011. Now seven years into the current console cycle, this sustained
growth in the installed base demonstrates continued appetite on the part of consumers for great console games.
The past year saw the launch of more hit titles than any year in recent history, and GameStop was a driving force in
delivering these games to customers. For the fi rst time, we launched four titles with more than one million pre-orders: Gears
of War 3 from Microsoft Studios, Battlefi eld 3™ from Electronic Arts, The Elder Scrolls® V: Skyrim™ from Bethesda Game
Studios and Call of Duty®: Modern Warfare™ 3 from Activision – our highest grossing title ever with 3.5 million units sold
in the fi rst week.
Buy-Sell-Trade Our strong new title performance is closely
linked to our successful buy-sell-trade model. Trade-ins of games,
accessories and consoles put currency in our customers’ hands
that can then be used to purchase new games, downloadable
content (DLC), digital PC games and pre-owned merchandise,
including mobile devices. In 2011, we created new promotional
programs specifi cally designed to drive additional trades toward
the purchase of new releases. As a result, nearly 70 percent of
trades were applied to the purchase of new products. An added
plus: this cycle also builds our pre-owned inventory, giving
customers a greater variety of budget-friendly purchasing options.
To help customers maximize their gaming budget, we took important steps to drive awareness of our buy-sell-trade model in 2011.
We re-merchandised our pre-owned software sections, making it easier for customers to shop. We improved our pre-owned
hardware displays, helping customers select the best system to meet their needs. We also designed a new process to improve
2011 ANNUAL REPORT
6
PRE-OWNED SALES
• Trade customers become pre-owned
game buyers
• Pre-owned products offer more value
to customers
• PowerUp Rewards members receive
double points on pre-owned products
• PowerUp Rewards Pro members
receive 10% off pre-owned games
and accessories
TRADES
• Trades are our unique currency
• Trade-ins build pre-owned
inventory
• PowerUp Rewards Pro members
receive a 10% trade bonus and
double points on trades
PRE-ORDERS
• Excite customers about new releases
with GameStop exclusives
• Talk-up trade incentives for
pre-orders
• Special offers and pre-order
bonuses for PowerUp Rewards
members
• Game Informer educates customers
about new releases
NEW SALES
• Pre-orders & trades drive
new sales
• Educate and drive DLC sale
opportunities
• PowerUp Rewards Pro members
get a 10% points bonus on all
purchases
Customer Experience
Circle of Life