GameStop 2013 Annual Report Download - page 54

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37
We are expanding our previous category of Pre-owned Video Game Products to include value-priced, or closeout, product
and will be calling the category Pre-owned and Value Video Game Products now and in the future. We believe there is significant
opportunity to purchase closeout and overstocked inventory from publishers, distributors and other retailers which is older new
product that can be acquired for less than typical new release product costs. This product can then be resold in our Video Game
Brands stores and on our Web sites as value-priced product. Our limited purchases of this product in the past have yielded
significantly higher margins than new video game products, yet slightly lower margins than pre-owned video game products. We
have intentionally limited the amount of this product we have acquired in order to protect the typical margin range of 46% to 49%
we earn from our pre-owned business. In the future, we intend to expand our selection of value product and expect that the margins
for the Pre-owned and Value Video Game Product category will range from 42% to 48%.
In the past, all other products we sold were categorized into an Other category, which included video game accessories,
digital products, new and pre-owned mobile products, consumer electronics, revenues from our PowerUp Rewards program and
Game Informer subscription sales, strategy guides, toys and PC entertainment software. We are separating our historical Other
category into the following new categories:
• Video Game Accessories, which includes new accessories for use with video game consoles and hand-held
devices and software, such as controllers, gaming headsets and memory cards;
• Digital, which includes revenues from the sale of DLC, Xbox Live, PlayStation Plus and Nintendo network
points and subscription cards, other prepaid digital currencies and time cards, Kongregate, Game Informer digital
subscriptions and PC digital downloads;
• Mobile and Consumer Electronics, which includes revenues from selling new and pre-owned mobile devices
and consumer electronics in Video Game Brands stores and all revenues from our Technology Brands stores;
• Other, which includes revenues from the sales of PC entertainment software, toys, strategy guides and revenues
from PowerUp Pro loyalty members receiving Game Informer magazine in physical form.
The following table sets forth net sales (in millions) and percentage of total net sales by significant product category for the
periods indicated:
52 Weeks Ended
February 1, 2014
53 Weeks Ended
February 2, 2013
52 Weeks Ended
January 28, 2012
Net
Sales
Percent
of Total
Net
Sales
Percent
of Total
Net
Sales
Percent
of Total
Net Sales:
New video game hardware ............ $ 1,730.0 19.1% $ 1,333.4 15.0% $ 1,611.6 16.9%
New video game software ............. 3,480.9 38.5% 3,582.4 40.3% 4,048.2 42.4%
Pre-owned and value video game
products ......................................... 2,329.8 25.8% 2,430.5 27.4% 2,620.2 27.4%
Video game accessories................. 560.6 6.2% 611.8 6.9% 661.1 6.9%
Digital ............................................ 217.7 2.4% 208.4 2.3% 143.0 1.5%
Mobile and consumer electronics.. 303.7 3.4% 200.3 2.3% 12.8 0.1%
Other .............................................. 416.8 4.6% 519.9 5.8% 453.6 4.8%
Total............................................... $ 9,039.5 100.0% $ 8,886.7 100.0% $ 9,550.5 100.0%