Gamestop’s bottomline could be hurt by growth of mobile, social genres

Gamestop makes most of its money from traditional gaming industry however if they are unable to respond to growth of other genres like browser, mobile, social, then it could hurt the company in a negative way.

“Gaming continues to evolve rapidly,” reads the statement SEC filing revealed. “The popularity of browser, mobile and social gaming has increased greatly and this popularity is expected to continue to grow. Browser, mobile and social gaming is accessed through hardware other than the consoles and traditional hand-held video game devices we currently sell.

“If we are unable to respond to this growth in popularity of browser, mobile and social games and transition our business to take advantage of these new forms of gaming, our financial position and results of operations could suffer. The Company has been and is currently pursuing various strategies to integrate these new forms of gaming into the Company’s business model, but we can provide no assurances that these strategies will be successful or profitable.”

They reveal all the reasons that could make their business suffer.

“Our business could suffer and has declined due to the failure of manufacturers to develop new or enhanced video game platforms, a decline in the continued technological development and use of multimedia PCs, or the failure of software publishers to develop popular game and entertainment titles for current or future generation video game systems or PC hardware.”

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Thanks, Polygon.