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Lazard: GameStop to turnover $200m in 2010 digital sales

Analyst says DLC giftcards, mobile games and Kongregate 'on the cusp of contribution'

Digital revenue streams are a growing earner for US retail chain GameStop, Lazard Capital Markets' Colin Sebastian has claimed.

The analyst identified XBLA, PSN and Wii points cards, DLC programmes, mobile games and the recent Kongregate acquisition as bringing in an estimated $200 million by the year's end.

Sebastian claimed such strategies were "on the cusp of contribution" for GameStop, which he also predicted as enjoying a healthy Christmas for more traditional business models. He projected "strong demand for the Kinect controller and is also pleased with the launch of Sony's Move."

The Lazard analyst was also impressed by the take-up of GameStop's new loyalty PowerUp loyalty system, which grants frequent purchasers discounts on online services such as Xbox Live, PSN and iTunes.

60 per cent of new PowerUp adopters fork out $15 for a premium version with additional perks, GameStop has claimed.

Sebastian felt that GameStop was poised to "aggregate content across a broad variety of connected devices," pointing out the recent release of 99c iPhone game, Buck and the Coin of Destiny, starring its leporid mascot.

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Alec Meer

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A 10-year veteran of scribbling about video games, Alec primarily writes for Rock, Paper, Shotgun, but given any opportunity he will escape his keyboard and mouse ghetto to write about any and all formats.