GameStop expects $1.5bn in digital revenues by 2014

Spawn Labs to become "streaming console game platform"

US retailer GameStop is targeting digital revenues in the region of $1.5 billion by 2014.

According to analyst Colin Sebastian at Lazard Capital Markets, that would give the retailer around 4 per cent of the US digital market, up for its current 1.5 per cent.

"Management expects GameStop to grow its share of the digital game market to roughly $1.5 billion in receipts by 2014 on multiple platforms and devices," wrote Sebastian, reports IndustryGamers.

"While the strategy may appear to some as a bit vague, management is not proposing a rapid transformation of the business, and the implied market share expansion from 1.5 per cent of the digital market in 2010 to 4 per cent in 2014 appears to be a reasonable goal."

The retailer last week announced the acquisitions of streaming tech firm Spawn Labs, which could be central to GameStop's home gaming plans.

"GameStop plans to transform recently acquired Spawn Labs into a streaming console game platform, which could become a desirable app on tablets, laptops and other devices.

"GameStop is also exploring the expansion of its buy/sell/trade model to tablets (potentially GameStop branded) and other devices, including Apple iPods in a new retail test," said Sebastian.

More stories

GameStop COO leaves after just seven months

Jenna Owens' responsibilities will be "absorbed by other members of the company's management team"

By Marie Dealessandri

SEC investigates GameStop stock surge, finds no evidence of fraud

Government body concludes that “a short squeeze did not appear to be the main driver of events” in memestock trading

By Danielle Partis

Latest comments

Sign in to contribute

Need an account? Register now.