Revenue

Strategy
Problem statement and
solution proposal

1
Problem Statement Solutions
Generate $4.5b in revenue within 5 Repurpose the physical stores
years to offset declining division
Game Stop expects its video game hardware and software
divisions, which account for 50% of its $9b revenue, to cease
operations in 5-10 years.
Strengthen online presence

AR/VR based gaming service

2
SWOT Analysis of GameStop

Strengths
• Extensive retail presence
• Strong Distribution Network
• Strong brand name
• Liquidity position
Opportunities
• Focus on Video Game
Industry
• Growth of Web-Based Stores
• Partnership Initiatives
Weakness
• Dependence on Few
Suppliers
• Vulnerable to disruptive
market
Threats
• Expansion by Competitors
• Government Regulations
• Currency Translation

3
 Strategy
Maximize Reach
Retain loyal customers and diversify
into new areas of gaming industries.

Cost-Efficient
Good understanding of our clients’
demands and budgets.

Business Relationship
Strategic initiative with our partners.

Global Services
Provide world-class gaming experience

4
4
GameStop: Current Revenue (~$9.0b)
New video game hardware New video game software Pre-owned video game products 30.0% 28%

Video game accessories Digital Mobile and consumer electronics

25.0% 23.3%
Other
19.4%

Revenue share
12000 20.0%

15.0%

10.0% 8.7% 8.5%

6.9%
10000
5.0% 3.1%
2.1%

0.0%

8000
Net sales in million U.S. dollars

Source: Statista estimates

Physical Digital*
6000
100.0%
20% 31% 35% 46% 54% 61% 69% 74% 79%

80.0%

Share of game sales

80%
4000
69%
60.0% 65%

54%
40.0% 46%
2000 39%
31%
20.0% 26%
21%

0 0.0%
2010 2011 2012 2013 2014 2015 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: GameStop 2017 10-K. ID 568893

5
 Market Behavior (Consumer)
6000 3000
Console games PC games Social/casual games 2,725
2,600
2,471
5000 2500 2,341
Revenue in million euros

2,210
2,080

Number of gamers in millions

4000 1,958
2000
1,815

3000 1500

2000
1000

1000
500

0
0
2010 2011 2012 2013 2014 2015 2016 2017* 2018*2019*2020*2021* 2014 2015 2016 2017* 2018* 2019* 2020* 2021*

Source: PwC; Informa Telecoms & Media; Ovum; BIU ID 460366

Revenue from video games worldwide from Number of active video gamers worldwide
2010 to 2021 (in millions) from 2014 to 2021 (in millions)

6
 Market Behavior (Consumer)
6000

5,524

5000 Digital games industry revenue in the United States in 2016, by game
category (in million U.S. dollars)
4000
Revenue in million U.S. dollars

3000
2,618

2000 1,794
1,682 1,670

1000
547

0
Mobile Console F2P MMO Social PC P2P MMO

7
 Global Revenue China (Largest market)
• A worldwide business will have
offices around USA (2nd Largest market)
• the world. Highlight those
countries in this part of this sales
presentation PowerPoint
template.

West Europe 25%

17%
14%
32%

Japan
1000 912

Number of gamers in millions

900
800

India (Promising market) 700

600
605

500
400
268
Number of video gamers 300
200
200 192 185 153
worldwide in 2016, by region 100
0
(in millions) Asia Europe, Midde North South Western Eastern
Pacific Middle
East and
East and
Africa
America America EU EU
8
Africa
Our Services

Slide Design Content Creation Webinar Design Marketing Solutions

Highly creative Concise yet appealing Interactive and creative Smart solutions for
presentation design. business content. webinar design. marketing requirements.

9
10
• Our Strategy
As a presentation firm, this is how we work.

Quality Skill Message Efficiency

Provide exceptional Develop skilled Help our clients deliver Produce reliable and
PowerPoint services. presentation designers. their message effectively. cost-efficient slides.

11
 Our Services

Slide Design Content Creation

We design effective and We make sure that you
appealing PowerPoint slides. deliver the right pitch.

Presentation Webinars
Consulting We offer webinar PowerPoint
We help you create the presentation services.
presentation you need.

Cost-Effective Online Presence

Visuals We get your message
We also offer video across and online.
animation and
infographics.

LOGO GOES HERE

12
12
• Timeline
Our company timeline over the years.

2014 2015 2016 2017

Start of Company Increase in Clients Increase in Staff Launch of App

Company was launched Acquired 100+ clients. Hired 20+ presentation Launched new website
online. designers. and mobile app.

13
TIMELINE

1998 2005 2009

The beginning of our Expansion of our company with more than 20 slide designers. We maximized the use of
presentation company as PowerPoint by adding services
established in San Diego, CA. such as video design and
animation.

2017
The expansion of our business
and presentation design
services.

2000 Our first 50 clients from

diverse industries. 2015 We took our team of slide
gurus on a trip to Paris.
Our first office in a small We launched our first mobile
apartment near the coast.
2003 application in IOS and Android
2013
Footer
14
TIMELINE

2013 2015
Our collaboration with We opened a new office
PowerPoint and a team of overseas, starting with a team
established business speakers. of 50+ presentation designers,
copywriters, and managers.

Recognition as one of the

leading presentation companies Growing success in terms of
in the US. client and customer reach.

2014 2016
Footer
15
Leading gaming markets worldwide as of October 2017, by gaming revenue (in
billion U.S. dollars)
Revenue in billion U.S. dollars
0 5 10 15 20 25 30 35

China 32.54

United States 25.43

Japan 14.05

Germany 4.43

United Kingdom 4.24

South Korea 4.2

France 2.98

Canada 1.97

Spain 1.92

Italy 1.88

Russia 1.53

Mexico 1.42

Brazil 1.32

Australia 1.24

Taiwan 1.03

16
Western European countries ranked by video game revenues in 2017*
Revenues in billion U.S. dollars
(in billion U.S. dollars)
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Germany 4.4

United Kingdom 4.2

France 3

Spain 1.9

Italy 1.9

17
Interest in virtual reality (VR) technology in Europe in 2016, by gamer
type
Very interested Somewhat interested Not very interested Not at all interested Don't know

Share of respondents
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Overall 11% 24% 23% 35% 6%

All gamers 17% 32% 23% 21% 6%

Console gamers 27% 37% 18% 11% 7%

PS4/Xbox One gamers 37% 35% 13% 8% 7%

Smartphone/tablet gamers 22% 33% 22% 17% 5%

PC Gamers 18% 33% 22% 21% 6%

18
Virtual reality (VR) gaming market revenue in the United States from
2014 to 2025 (in billion U.S. dollars)

25

20 19.5

15.9
Revenue in billion U.S. dollars

15

12.9

10.6

10
8.6

7.1

5.7

5 4.6
3.8 Source: Statista estimates; Grand View Research ID 784175
3.1

1.26 1.52

0
2014 2015 2016* 2017* 2018* 2019* 2020* 2021* 2022* 2023* 2024* 2025*

19
Retail revenue of the U.S. video game industry from February 2016 to
February 2018 (in billion U.S. dollars)

3.5

2.5
Revenue in billion U.S. dollars

1.5

0.5

0
Feb Mar Apr May Jun Jul '16 Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul '17 Aug Sept Oct Nov Dec Jan Feb
'16 '16 '16 '16 '16 '16 '16 '16 '16 '16 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '18 '18

20
Hardware revenue of the U.S. video game industry from February 2016
to February 2018 (in million U.S. dollars)

1400

1200

1000
Revenue in million U.S. dollars

800

600

400

200

0
Feb Mar Apr May Jun Jul '16 Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul '17 Aug Sept Oct Nov Dec Jan Feb
'16 '16 '16 '16 '16 '16 '16 '16 '16 '16 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '18 '18

21
Software revenue of the U.S. video game industry from February 2016
to February 2018 (in million U.S. dollars)

1400

1200

1000
Revenue in million U.S. dollars

800

600

400

200

0
Feb Mar Apr May Jun Jul '16 Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul '17 Aug Sept Oct Nov Dec Jan Feb
'16 '16 '16 '16 '16 '16 '16 '16 '16 '16 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '17 '18 '18

22
Digital games industry revenue in the United States in 2016, by game
category (in million U.S. dollars)

6000

5,524

5000

4000
Revenue in million U.S. dollars

3000
2,618

2000 1,794
1,682 1,670

1000
547

0
Mobile Console F2P MMO Social PC P2P MMO

23
Gaming brand recognition among gamers in the United States as of
December 2016

Share of respondents
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Nintendo Company 65%

Partner with
Microsoft Studios 53%

Sony Computer Entertainment 52%

Tencent to help
Electronic Arts 46%
them increase
Capcom 41%
footprint in US
Activision Blizzard 41% market
Ubisoft 39%

Bandai Namco Games 26%

Gameforge 24%

King Digital Entertainment 20%

Square Enix 19%

Bethesda Softworks 18%

Supercell 17%

Deep Silver 9%

Tencent 8%

24
Leading sources used to purchase or download video games
according to gamers in the United States as of December 2016

Share of respondents
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

AppStore/Play Store 56%

Online retailers (amazon, ebay, etc.) 43%

Bricks-and-mortar retailers (BestBuy, small specialist retailers) 29%

Online stores operated by platform providers (XBox, Sony, Nintendo, etc.) 24%

Online games portals (e.g. McGame.com) 23%

Steam (downloads from the Steam games platform) 22%

GameStop (purchase or trade-in) 21%

Other 2%

I don`t buy new games 12%

25
Distribution of games market revenue worldwide from 2015 to 2019, by
segment and screen

Handheld games Casual webgames Tablet games Smartphones & watches TV/console/VR PC/MMO games

120.0%

100.0%
28% 27% 26% 26% 25%

80.0%
Source: Newzoo ID 298403
27% 26%
Share of revenue

29% 28%
30%

60.0%

34%
32%
30%
40.0% 27%
24%

20.0%
9% 10% 10% 11% 11%

6%
5% 5%
0.0% 4% 4%
3% 2%
2015 2016* 1%
2017* 1%
2018* 1%
2019*

26
Value of the social online games market in the United States from 2010
to 2020, by type (in million U.S. dollars)

App-based Browser-based

3000

2500

398
406
415
Market value in million U.S. dollars

422
2000 431 2,024
438 1,939
447 1,840
454
1,731
445 1,629
1500
441 1,531
427 1,430
1,321
1,204
1000 1,097
1,001

500

0
2010 2011 2012 2013 2014 2015 2016* 2017* 2018* 2019* 2020*

27
Social games revenue in Asia from 2014 to 2017 (in billion U.S. dollars)

2.48
2.5
2.33
2.27 2.27

2
Revenue in billion U.S. dollars

1.5

0.5

0
2014 2015* 2016* 2017*

Source: SuperData Research ID 537701

28
Value of the social online games market in South Africa from 2012 to
2021, by type (in million South African rand)

App-based Browser-based

4000

154
3500
3,570

3000 160
Market value million South African rand

2,920

2500
167
2,353

2000
171
1,854

1500 172
1,412
171
1000
1,035
166
723
500 160
146 474
133 289
0 147
2012 2013 2014 2015 2016 2017* 2018* 2019* 2020* 2021*

Source: PwC; Ovum ID 517354

29
Most popular Facebook games as of January 2018, based on monthly
active users (in millions)

Monthly active users in millions

0 10 20 30 40 50 60

Candy Crush Saga 50

Texas Holdem Poker 10

Clash of Clans 10

8 Ball Pool 10

Farm Heroes Saga 10

Subway Surfers 5

Words With Friends 5

Dragon City 5

Hay Day 5

Trivia Crack 5

30
Average annual in-game spending of mobile gamers in the United
States in 2016, by game title (in U.S. dollars)

Average annual in-game spending in U.S. dollars

0 50 100 150 200 250 300 350 400

Game of War - Fire Age 336

Mobile Strike 309

Star Wars Galaxy of Heroes 185

MARVEL Contest of Champions 153

Slotomania 151

Boom Beach 102

Covet Fashion 102

Cookie Jam 80

Madden NFL Mobile 76

Clash of Clans 75

Candy Crush Saga 75

Candy Crush Soda Saga 73

Hay Day 71

Kim Kardashian Hollywood 70

SimCity BuildIt 64

Source: Slice Intelligence ID 534194

31
Average time spent playing multiplayer games online according to
gamers in United States as of December 2016, by device

Home console Handheld console PC Smartphone/tablet Set-top box

Don't play online-multiplayer 3% 5% 1% 2% 3%

up to 20% 13% 19% 16% 19% 14%

21% - 40% 16% 16% 14% 18% 17%

41% - 60% 22% 25% 21% 20% 21%

61% - 80% 26% 18% 22% 21% 20%

81% - 99% 17% 14% 19% 14% 15%

Play only online-multiplayer 4% 3% 7% 5% 10%

32
Revenue generated by free-to-play and pay-to-play massively multiplayer
online (MMO) games worldwide as of June 2016, by region (in million U.S.
dollars)

Free-to-play Pay-to-play

14000

12000 1,400

11,200
10000
Revenue in million U.S. dollars

8000

6000

4000

642
2,900
2000 580
1,900

97
913
0 44
216
Asia Europe North America Latin America Rest of the world

33
Distribution of digital games market revenue worldwide in 2017, by
monetization model

90.0%

82%
80.0%

70.0%

60.0%
Share of revenue

50.0%

40.0%

30.0%

20.0%
14%

10.0%
5%

0.0%
Free-to-play-based games Premium-driven games Subscription-based games

34
Percentage of consumers who purchased additional video game
content in the United States as of September 2016

30.0%
28%

25.0%
23%

20.0%
Share of respondents

16%

15.0%

10.0%

5.0%

0.0%
Total Downloadable content (DLC) Microtransactions

35
In-game consumer spending worldwide in 2015 and 2020 (in billion U.S.
dollars)

35

32

30

25
Spending in billion U.S. dollars

22

20

15

10

0
2015 2020

Source: CNET; PwC ID 558952

36
Amount spent on in-game purchases according to gamers in the
United States as of December 2016

25.0%

23%

20%
20.0%

18%

15%
Share of respondents

15.0%

13%

11%

10.0%

5.0%

0.0%
0 US$ 1 - 20 US$ 21 - 50 US$ 51 - 100 US$ 101 - 250 US$ More than 250 US$

37
Number of paid smartphone or tablet games owned by gamers in the
United States as of December 2016

35.0%

30%
30.0%

25.0%
23%

21%
Share of respondents

20.0%
18%

15.0%

10.0%

5%
5.0%

2%

0.0%
No games 1 - 2 games 3 - 5 games 6 - 10 games 11 - 20 games 21 - 50 games

38
Worldwide in-app advertising and app store revenues of mobile apps
and games in 2015 and 2020 (in billion U.S. dollars)

Apps excl. games - mobile in-app advertising Apps excl. games - mobile app store Games - mobile in-app advertising Games - mobile app store

200

180

160

140
Revenues in billion U.S. dollars

120

100

80

60

40

20

0
2015 2020*

39
Number of mobile (cellular) subscriptions worldwide from 1993 to 2017
(in millions)

9000

8000 7,740
7,511
7,184
6,996
7000 6,661
6,261
5,890
6000
Mobile subscriptions in millions

5,290

5000
4,640

4,030
4000
3,368

3000 2,745

2,205
2000 1,765
1,418
1,159
962
1000 740
492
215 318
34 56 91 145
0
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17*

40
Number of active mobile broadband subscriptions worldwide from
2007 to 2017 (in millions)

4500
4,220

4000 3,864

3500
3,297
Mobile broadband subscriptions in millions

3000
2,660

2500

1,959
2000

1,550
1500
1,184

1000
807
615

500 422
268

0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*

41
 Video Game Software Publishing
7.4% annual growth 12-17
5.7% growth 17-22

Key external factors:

1. Number of broadband connection
2. Per-capita disposable income
3. Number of mobile internet connection
4. Time spent on leisure and sports

42
In addition to expanding their reach to different
demographics like women and seniors, video game
software publishers already cater to a loyal and ever-
expanding target audience.

43
four largest
companies accounting
for an estimated
35.0% of industry
revenue in 2017.

44
45
The global mobile and wearable gaming market has a 37% market share in the total global
gaming market. Currently, the global mobile and wearable gaming market is valued at
around $34.7 billion, with 94.7% of the total revenue coming from mobile gaming while
wearable gaming contributes 5.3% of the overall revenue. The mobile and wearable gaming
market is further expected to grow at a robust CAGR of 10.9% during the forecast period of
2016-2021.

The smartphone market, at present, is dominated by American, Chinese and Korean

companies; American and Korean companies focus on the higher end of the market, while
Chinese companies dominate the mid-range and low-range market.

North America is a saturated market.

The rapid growth of the smartphone and tablets market in Asia-Pacific has been a major driver.
The emergence of local companies in China, India and Southeast Asia is also playing a major
role in the growth of the market.

46
Global Market for Mobile and Wearable Gaming, by Region, 2015-2021 ($ Millions)

47
Virtual reality in gaming is providing an improved real-time experience to gamers, which in turn is
boosting the growth of the mobile and wearable gaming market in the current scenario. The adoption
of this technology in games is one of the major milestones in the history of mobile gaming. Some of
the finest examples of virtual reality in mobile gaming are Cardboard, End Space VR, Proton Pulse,
Hardcode, and WAA! VR.

One of the finest examples of the augmented reality-based game is the Pokémon GO. This game
was developed by Niantic Inc. The developers of the game showed the capability of augmented
reality by using the smartphone and gained popularity across the globe at an extensive level.
Some of the finest examples of augmented reality games are Ingress, Life is Crime, Zombies, and
Run! Parallel Kingdom MMO, The Walk, Geocaching, SpecTrek, and Clandestine Anomaly

Wearable Technology

48
Publishers have experimented with a variety of tricks to make money from free games. Some of them have
embedded ads in their games, selling eyeballs to advertisers instead of selling games to gamers. Facebook
games such as Farmville only let players play for limited periods of time and with limited resources, asking
for money at every turn if the player wants to progress further in the game. The significant advantages
offered by freemium games have gained a wider acceptance by gamers. In 2012, the worldwide freemium
MMO revenue grew twice as fast as subscription MMO revenues. Thus, it can be stated that the freemium
revenue model is driving the growth across all the gaming genres.

49
 High Cost of Gaming Development

A mini-game is likely to be 2D in appearance and have a simple gameplay or simple visual style.
Flappy Bird

Mid level: Cut the rope, Angry birds

In the current scenario, the growing popularity of free-to-play model coupled with the high
development cost of the mobile and wearable games have impacted the growth of the mobile and
wearable gaming market.

50
In the mobile and wearable gaming market, software piracy is a critical issue.
The overall revenue lost due to piracy was around $74 billion in 2014 and approximately 2.5 billion
pirated games were downloaded.

The adoption of the freemium model is one of the quickest ways to end the problem of piracy in
the mobile and wearable gaming industry.

The best defense against piracy is to force the mobile game to communicate with the company’s
(mobile game developer’s) servers remotely.

51
In the healthcare industry, gaming is developing rapidly within the digital health paradigm as a way to
bridge the gap between entertainment, medicine and technology.

Thus, the emerging areas such as health games and education games are seen as emerging growth
opportunities for the mobile and wearable gaming market.

Learning games include both corporate training games for adults and educational games for kids. In 2013,
the value of the learning game market was valued at around $4 billion and it is projected to reach $9.5
billion by 2020.
Games such as Brain Age: Train Your Brain in Minutes by Nintendo is primarily used in corporations for
brainstorming sessions.

52
The smart Glasses market will soar towards 1 billion shipments near the end of the decade, according to
market research by the Augmented Reality Enterprise Alliance. According to the report, in the year 2014
there were 1 million AR glasses units sold and by 2016 the number sold increased to 10 million units.

53
 India’s mobile and wearable gaming market is projected
to reach $1.4 billion by 2021, growing at a CAGR of
15.1%.
The country has around 221 million smartphone owners; it is projected that around 800 million Indian citizens will
join the smartphone revolution in the coming ten years.

Advantages of India for Mobile Gaming Market:

•World's second largest Internet population.
•World's largest youth population.
•Huge skills base across IT, testing and arts.
•Presence of big development centers such as UbiSoft,
Microsoft, Playdom, Disney, Zynga,
•Nvidia, Electronic Arts, Sony, Digital Chocolate, etc.
•Availability of creative talent.
•World-class infrastructure and advanced technology.

54
This market is expected to hit $6.1 billion by 2021,
growing at a CAGR of 21.4% during the forecast period.

Gamers across the globe are fascinated by the

innovation and technological advancement in mobile
and wearable gaming, for example, the adoption of VR
headset and other hardware devices provide thrilling
experiences to users.

Popular games are improvised and successful movie

titles are introduced in mobile gaming to optimize
marketing opportunities. Advertising, app-install ads,
promotions, and so on are increasing due to the rising
popularity of mobile and wearable games across the
globe.

55
Market: $140M

56
Market: $763M

57
58
Market: $398M

59
60
 According to BCC Research estimates, the global virtual
reality technologies market was valued at $2.3 billion in
2016 and is estimated to grow at a CAGR of 60.5% and to
reach $39.4 billion by 2022

However, factors like weak VR content, lack of VR

familiarity, and over-pricing are some of the major
hurdles to VR market on its road to mass adoption in the
consumer and enterprise space.

The global VR market by selling VR products were $2.3

billion in 2016 and is expected to reach $39.4 billion by
2022, at a CAGR of 60.5% from 2017 through 2022. Asia-
Pacific accounts for the largest market share of the
global VR market, followed by North America and
Europe. Key market participants include Samsung, Sony,
HTC Vive, Alphabet (Google), and Oculus VR.

61
 Asia-Pacific being one of the largest markets of VR
adoption, is also the largest market for mobile or
smartphone adoption with the help of countries like
India, China, and Japan, which is one of the driving
factors of the global VR market.

So, the lack of quality Virtual Reality (VR) content is a

bigger barrier than hardware problem in the adoption of
VR.

Currently, social interactions are taking place through

phone/video calls and text messages. However, in the
future with the help of Social VR platforms the
interactions will take place in virtual world, specially
when users can’t be together in person, which is one of
the biggest opportunities for the VR market.
For instance, AltspaceVR Software, based in California,
provides a social platform allowing users around the
users to attend free live events and play interactive
games with friends. Browser maker Mozilla is also
working on technologies to power web-based social VR
and mixed reality experiences.

62
Companies such as Virtalis, an information technology
and services company based in the UK, and WorldViz,
based in the U.S., specialize in developing powerful
immersive 3D VR software applications keeping the 3D
environment in mind.

Marxent’s 3D Furniture Cloud, which is a cloud-based

content management suite of virtual reality solutions for
furniture retailers, allows the furniture manufacturers
and retailers with 3D catalogs through virtual reality
visualization tools. It enables 3D media files supported
by iOS, android, and HMD devices such HTC Vive,
Samsung GearVR, Google Daydream, Oculus Rift, and
Google Cardboard.

63
64
65
Next Steps

66
Timeline

MAY JUN TODAY AUG SEPT OCT NOV

Requirements
User research Wireframes Review Prototype User testing Dev hand-off
gathering

67
Questions?

68
References
Tips for Presenting Your Wireframes
3 Steps to Better UI Wireframes
Wireframing for Beginners

69