By James Brightman
Following two major acquisitions to enhance its digital offerings, GameStop has revealed that it’s expecting to grow its digital revenues to $1.5 billion by 2014, according to Lazard Capital Markets’ Colin Sebastian.
“Management expects GameStop to grow its share of the digital game market to roughly $1.5B in receipts by 2014 on multiple platforms and devices. While the strategy may appear to some as a bit vague, mgmt is not proposing a rapid transformation of the business, and the implied market share expansion from 1.5% of the digital market in 2010 to 4% in 2014 appears to be a reasonable goal,” he said.
Of particular interest is that GameStop could be looking to leverage the growing tablets market, using its new Spawn Labs technology. “Streaming console games could become a popular tablet app. 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.