GameStop Faltering in the Digital Space

Posted Tue Nov 27, 2012 at 07:30 AM PST by

Gamasutra details how GameStop's 2015 goal of $1.5 billion in annual digital revenues may now be a pipe dream.

Of direct concern is the drop off in growth between 2011 and 2012. The article is careful to point out that "the company's digital figures are still headed in the right direction, but that $1.5 billion annual figure is now out of reach." Before going on to place GameStop on pace for somewhere between $900 and $1.3 Billion by the January 2015 target date.

The article goes on to draw an unexpected correlation. First off, GameStop's digital platform acquisitions of the past few years, e.g. Impulse, Kongregate, and Spawn Labs, are not the company's current artery of digital income, rather it is the point of sale transactions of DLC and related points currency that forms the current digital sales.

The health of these sales is in direct correlation with the traditional brick and mortar dales model, states the article. "When either of GameStop's software segments lag, the company is in a position to lose part of its digital business too."

Source: Gamasutra

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