Paul Raines, chief executive officer of GameStop Corp. (NYSE:GME), indicated that the largest multichannel video game and entertainment software retailer worldwide is seeking other future growth opportunities beyond video games.
Next evolution of GameStop
The management of GameStop Corp. (NYSE:GME) discussed the further evolution of the company, which was referred to as “GameStop 3.0”, during the 2014 Investor Day held at Dallas, Texas on Tuesday, April 21.
According to Raines, video games are a huge business for GameStop Corp. (NYSE:GME), and he noted that the growth of the segment will be driven by the Xbox One from Microsoft Corporation (NASDAQ:MSFT)’s, PlayStation 4 from Sony Corporation (NYSE:SNE) (TYO:6758) and the Wii U from Nintendo Co., Ltd (OTCMKTS:NTDOY) (TYO:7974).
He also emphasized that the company is focusing its attention on larger markets for future growth aside from physical and digital games, including the e-commerce market for non-gaming tech devices, the Apple Inc. (NASDAQ:AAPL) ecosystem and the wireless market.
GameStop to expand Simply Mac brand
Raines emphasized that GameStop Corp. (NYSE:GME) has already made investments in the Apple Inc. (NASDAQ:AAPL) ecosystem. The video games and entertainment software retailer is currently buying, selling and accepting trade-ins for different iOS devices at its stores.
In addition, Raines said GameStop also owns Simply Mac, a sales and service specialist for all Apple products including Mac computers, iPhone, iPad, iPod, and Apple TV, etc., and the company is planning to expand the Simply Mac brand with the support of Apple Inc. (NASDAQ:AAPL).
Wireless growth opportunity
Furthermore, Raines said, the opportunities for GameStop Corp. (NYSE:GME) in the wireless market are just starting. According to him, the market for connected devices is expected to grow from $8 billion to $50 billion over the next five years.
Spring Mobile, a wireless solutions retailer, is a wholly-owned subsidiary of GameStop Corp. (NYSE:GME), and it also operates Cricket Wireless stores, which were recently acquired by AT&T Inc. (NYSE:T). GameStop also has an exclusive distribution deal with AT&T Inc. (NYSE:T) and plans to expand with up to 250 new Spring Mobile stores.
Raines also pointed out that the management of GameStop Corp. (NYSE:GME) are “students of of extraordinary business transformation stories.”