GameStop 2012 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2012 GameStop annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 123

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123

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 pre-owned video game
hardware, physical and digital video game software, accessories, as well as PC entertainment software, new and
pre-owned mobile and consumer electronics products and other merchandise. As of February 2, 2013,
GameStop’s retail network and family of brands include 6,602 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.ebgames.co.nz, 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; a digital PC distribution platform
available at www.gamestop.com/pcgames; iOS and Android mobile applications; and an online consumer
electronics marketplace available at www.buymytronics.com.
In the fiscal year ended February 2, 2013, we operated our business in the following segments:
United States, Canada, Australia and Europe. Of our 6,602 stores, 4,425 stores are included in the United States
segment and 336, 416, and 1,425 stores are included in the Canadian, Australian and European segments,
respectively. Each of the operating segments consists primarily of retail operations, with all stores engaged in the
sale of new and pre-owned video game systems, software and accessories, which we refer to as video game
products, and PC entertainment software and related accessories. We also sell various types of digital products,
including downloadable content, network points cards, prepaid digital and online timecards and digitally
downloadable software. Our mobile business consists primarily of pre-owned mobile devices, tablets and related
accessories. Our buy-sell-trade program creates a unique value proposition to our customers by providing our
customers with an opportunity to trade in their pre-owned video game products and mobile devices for store
credits and apply those credits towards other merchandise, which in turn, increases sales. 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;
• the launch of next-generation consoles, the timing and features of such consoles and the impact on
demand for existing products following the announcement of the launch of next-generation consoles;
2