GameStop's Transformation: Embracing Digital Trends for Success

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In the wake of changing consumer behaviors and market dynamics, GameStop faces critical decisions on its future strategy. Recommendations include embracing digital transformation to leverage its strong brand presence and adapt to the evolving gaming landscape. Market analysis highlights the shift towards online retail, while competitors and alternatives suggest a dual focus on physical and digital platforms. The key lies in integrating both channels to enhance sales performance and maintain relevance in a digital era.

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GameStop Transformation, Game over never exist . FIA CONSULTING, REPRESENTING TO CEO, MR. SHERMAN AMANDA, HARUKA, MAURICIO, RODRIGO

Key issue SELL? MERGE?ACQUIRE? DOWNSIZE STORE PERFORMANCE CONSUMER BEHAVIOR ARE WE GOING TO FOLLOW THE SAME PATH LIKE BLOCKBUSTER AND KODAK?

Agenda RECOMMENDATION MARKET ANALYSIS ALTERNATIVES STRATEGY RISK + MITIGATION IMPLEMENTATION FINANCE

RECOMMENDATION EMBRACE DIGITAL TRANSFORMATION AND TAKE ADVANTAGE OF YOUR POWERFUL BRAND Enjoy the game

MARKET ANALYSIS BY AMANDA

Inside GameStop Portfolio Variety Strong Presence Huge fan basis Strong Brand Since 90`s Broad Game basis Magazines Studios USA Canada France Italy German Australia New Zealand Specially on physical stores

Outside GameStop Market Increase Decrease of mall centers 9,6% YOY Increase in retail, but SHIFT TO ONLINE (increase o 15% CARG) Digital Growth

The gamers are changing Strong Social Media presence 15-35 years old mostly Seek for experience Convenience: FASTER and SIMPLE Price sensitivity

Competitors Physical store Download Site E-commerce GAME STOP X X Best buy X Target X Main download MKT Walmart X K Mart X Steam X Origin X Rental UPlay X GameFly X* Amazon X

ALTERNATIVES BY MAURICIO

ALTERNATIVES FOCUS ON PHYSICAL STORES BY INVESTING MORE CAPITAL ON MARKETING & COMMUNICATION. TRANSFORM STRATEGY FOCUSING 100% ON DIGITAL PLATFORM BY CLOSING ALL PHYSICAL STORES. TURN AROUND SALES PERFORMANCE BY INTERGRATING BOTH PHYSICAL & ONLINE STORES

DECISION MATRIX CUSTOM ER EXPERIEN CE PROFITAB ILITY FEASIBILI TY TIME ACTION YOU CAN IMPLEMENT THIS PROPOSAL NOW.

ALTERNATIVES FOCUS ON PHYSICAL STORES BY INVESTING MORE CAPITAL ON MARKETING & COMMUNICATION. TRANSFORM STRATEGY FOCUSING 100% ON DIGITAL PLATFORM BY CLOSING ALL PHYSICAL STORES. TURN AROUND SALES PERFORMANCE BY INTERGRATING BOTH PHYSICAL & ONLINE STORES DECISION MATRIX: PROFITABILITY/CUSTOMER EXPERIENCE/FEASIBILITY/TIME

STRATEGY BY MAURICIO & HARUKA

ACTION PLAN - - ESPORTS SPONSORSHIP ESPORTS SPONSORSHIP ECOSYSTEM OF ESPORTS ORGANI ZATION FANS PLAYERS TOURN AMENTS GAME

ESPORTS sponsorship THE BEST USA ORGANIZATIONS WE CONSIDER TO BE THE SPONSOR. TSM LUMINOSITY Team Liquid TEAM SOLOMID GAMES GAMES GAMES CS: FIO RAINBOW 6 SIEGE LEAGUE OF LEGENDS CS: FIO RAINBOW 6 SIEGE LEAGUE OF LEGENDS DOTA OVERWATCH ETC DOTA RAINBOW 6 SIEGE LEAGUE OF LEGENDS

ESPORTS sponsorship US$ 3 MILLION INVESTMENT PER YEAR Team Liquid Sponsorship package & Return Of Investment (ROI) 1. LOGO EXPOSURES ON T-SHIRTS, BANNERS, BACKDROPS AND OTHER COMMUNICATION TOOLS 2. EVENTS BETWEEN TEAM/ATLETES & FAN AT PHYSICAL STORES 3. % OF SOCIAL MEDIA EXPOSURE ON GAMESTOP AND Team Liquid per month 4. INCREASE FOLLOWERS ON YOUTUBE (82K) & INSTAGRAM (1.3 M) (Facebook 6.8 M/Twitter 1.2M)

ESPORTS sponsorship KPIs Marketing YoY 1. 25% Increase in social media total views 2. Instagram followers from 1.3 to 6.8 Million 3. YouTube Subs from 82k to 1Million 4. Web and App Traffic increase by 30%

ACTION PLAN - -WEBSITE IMPROVE CUSTOMER JORNEY WEBSITE - - MAIN PAGE PAYMENT ONE SIMPLE CLICK VISUAL IMAGE TRACEABLE! ONE CLICK & GO TO PAYMENT ACURATE DELIVERY DATE & TIME NEW RELEASE INCREASE CONVERSION RATE BY MAKE IT SIMPLER, CLEANER AND FASTER FOR CUSTOMERS TO PURCHASE THEIR FAVORITE GAMES! REVIEW

ACTION PLAN - -PHYSICAL STORES PHYSICAL STORES - - DOWNSIZE STORES 3846 STORES IN USA. 3 YEARS PLAN DOWNSIDE TO 3346 (APPROXMATELY 500 STORES) DEPENDING ON SHOPPING MALL PERFORMANCE NEGOCIATION WITH SHOPPING MALL/CONTRACT TERMS & CONDITIONS STORE PERFORMANCE COST OF LAYOFF EMPLOYEES APPROXMATELY 25% OF AMERICAN MALSS WILL CLOSE IN NEXT 5 YEARS.

RISK & MITIGATION BY HARUKA

Risk 1 Compare to Facebook (6.8M), Instagram has 1.3 M followers. GameStop is not following the market trend. Impact: High Risk: Moderate MITIGATION: By sponsoring eports organization, GameStop will, increase followers from 1.3M to 6M in 1 year.

Risk 2 Delivering negative image by closing down up to 500 stores in 3 years. Impact: Low Risk: Low MITIGATION: 1. Improve customer journey on website to transformer traffic gradually to website. 2. 25% of American mall will close in next 5 years.

IMPLEMENTATION PLAN BY MAURICIO

Implementation Schedule 1 2 3 Year $60 M $60 M $60 M Revamp Digital Improve Customer Journey Marketing Focus $6 M $6 M $6 M Esports Sponsorship Find a Team Negotiate the Deal Analyze results Develop new opportunities $ 50 $ 30 $ 30 Stores Strategy Performance Analysis Stores Closing Renew Stores Worldwide USA

FINANCE BY RODRIGO

Considerations - Digital Net Profit 88.5% - Discontinued operations last year many changes already done in the past year $730M Best Buy: $769 - Stores Revenue USD / foot: $657 Foot Locker: $503 - US Retail (aprox 70% of GameStop Revenue) = 3.8% YoY growth - Online Shopping 14.3% of total Retail Sales with 15% CAGR

Revenues Revenue Per Product 2,421 194 955 294 0 1 2 3 Video Game Hardware New video game software Pre owned and value video game products Video Game Accessories Collectibles Other Digital

Gross Profit 2,143 845 172 260 0 1 2 3 Video Game Hardware New video game software Pre owned and value video game products Video Game Accessories Collectibles Other Digital