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GameStop Acknowledges Move To Online Gaming Poses Business Threat

Leading specialty video game retailer GameStop may downplay the threat that digital and online gaming poses to its packaged business, but regulatory filings show that the company is keenly aware of business hazards associated with the rise of digital distribution.

In its report on fiscal 2008, over a year ago, GameStop updated its language about threats to its business model. In particular, we observed that GameStop broadened its description of the threat posed by software distributed online to include consoles and, presumably, handhelds. Previously that section of GameStop's 10-K had referred only to PC software.

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