GameStop 2013 Annual Report Download - page 31

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14
Game Informer
We publish Game Informer, the world’s largest physical and digital video game publication and Web site featuring reviews
of new title releases, game tips and news regarding current developments in the electronic game industry. Print and digital versions
of the monthly magazine are sold through subscriptions, digitally and through displays in our stores throughout most of the world.
Game Informer magazine is the third largest consumer publication in the U.S. and for its December 2013 issue, the magazine had
over 7.6 million paid subscribers, including over 3.0 million paid digital magazine subscribers. According to the Alliance for
Audited Media, the digital version of the magazine is the largest subscription digital magazine in the world. Game Informer is a
part of the PowerUp Rewards Pro loyalty program as a key feature of each paid PowerUp Rewards membership. We also operate
the Web site www.gameinformer.com, which is the premier destination for moment-by-moment news, features and reviews related
to video gaming. In 2013, the Web site averaged over 2.9 million monthly unique visitors. Game Informer revenues are also
generated through the sale of advertising space in Game Informer magazine and on 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.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, 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. Additionally, we offer over 2,000 titles of digitally downloadable PC video games
available for purchase at www.gamestop.com/pcgames. E-commerce results are included in the geographic segment where the
sales originate.
Kongregate
We operate the online video gaming site www.kongregate.com, which is a leading web and mobile gaming platform. Over
20,000 developers have uploaded more than 80,000 games to Kongregate.com that have been played nearly 3 billion times. The
majority of Kongregate’s revenues come from in-game transactions utilizing a proprietary virtual currency called Kreds.
Kongregate’s mobile publishing division has several titles available in both the Apple and Google app stores.
BuyMyTronics
In March 2012, we purchased the assets of BuyMyTronics, an online consumer electronics marketplace available at
www.buymytronics.com. BuyMyTronics provides consumers and businesses with solutions to earn cash for their pre-owned
personal or corporate-issued mobile phones, tablets, MP3 players and other consumer electronic devices. The results of
BuyMyTronics are reported with our mobile results.
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 pre-owned video game products. Inside our 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.
We have loyalty programs in most of the markets in which we operate. Our various loyalty programs total over 34 million
members worldwide. These programs are designed to incent our customers to shop more often at our stores and to allow us to
market directly to our customers based on their individual tastes and preferences. Our loyalty programs provide members with
the opportunity to earn unique video game related rewards not available through any other retailer. Vendors also participate in
these programs to increase the sales of their individual products. Our PowerUp Rewards program in the United States gives our
customers the ability to sign up for a free or paid membership that offers points earned on purchases in our stores, on our U.S. Web
site and on Kongregate.com, which can be redeemed for discounts or merchandise. The program’s paid tier also includes a