MarketLineIC CanadaGamesSoftwareRetail 211122

MarketLine Industry Profile
Games Software Retail in Canada

October 2022
Reference Code: 0070-2346
Publication Date: October 2022
Primary NAICS: 511210
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Industry Profiles
1. Executive Summary
1.1. Market value

The Canadian games software retail market grew by 4.3% in 2021 to reach a value of $1,783.5 million.
1.2. Market value forecast

In 2026, the Canadian games software retail market is forecast to have a value of $2,365.7 million, an
increase of 32.6% since 2021.
1.3. Geography segmentation

Canada accounts for 7.2% of the Americas games software retail market value.
1.4. Market rivalry

In the games software market, there is a tendency towards consolidation as large, diversified retailers
acquire ever-increasing shares of the market. The Canadian market is home to over 200 GameStop stores,
while the market dominance of Amazon intensifies rivalry further.
1.5. Competitive Landscape

The video game industry is intensely competitive and subject to rapid changes in consumer preferences
and frequent new product introductions. The competitive landscape consists of video game and related
specialty stores, mass merchants and regional chains; computer product and consumer electronics stores;
and toy retail chains and direct sales by software publishers. Online environments have also become more
competitive, with the likes of Sony (PlayStation Network), Microsoft (Xbox Live), and Nintendo (Nintendo
Switch Online), as well as other online retailers and game rental companies, gaining shares of digital
software sales. The coronavirus pandemic has accelerated spending online, which has benefited leading
players that already have a sophisticated online business model in place as well as businesses that are
considered as essential, such as supermarkets, which have continued to sell gaming software.

Industry Profiles
TABLE OF CONTENTS
1. Executive Summary 2
1.1. Market value ................................................................................................................................................2
1.2. Market value forecast ..................................................................................................................................2
1.3. Geography segmentation.............................................................................................................................2
1.4. Market rivalry...............................................................................................................................................2
1.5. Competitive Landscape ................................................................................................................................2
2. Market Overview 7
2.1. Market definition .........................................................................................................................................7
2.2. Market analysis ............................................................................................................................................7
3. Market Data 9
3.1. Market value ................................................................................................................................................9
4. Market Segmentation 10
4.1. Geography segmentation...........................................................................................................................10
4.2. Market distribution ....................................................................................................................................11
5. Market Outlook 12
5.1. Market value forecast ................................................................................................................................12
6. Five Forces Analysis 13
6.1. Summary ....................................................................................................................................................13
6.2. Buyer power...............................................................................................................................................14
6.3. Supplier power ...........................................................................................................................................15
6.4. New entrants .............................................................................................................................................17
6.5. Threat of substitutes ..................................................................................................................................18
6.6. Degree of rivalry.........................................................................................................................................19
7. Competitive Landscape 21
7.1. Who are the leading players? ....................................................................................................................21
7.2. What strategies do the leading players follow?.........................................................................................21

Industry Profiles
7.3. What disruptors/challengers have changed the market in recent years? .................................................22
7.4. What is the biggest theme in the market?.................................................................................................22
8. Company Profiles 24
8.1. Valve Corporation ......................................................................................................................................24
8.2. Amazon.com, Inc........................................................................................................................................26
8.3. GameStop Corp ..........................................................................................................................................31
9. Macroeconomic Indicators 34
9.1. Country data ..............................................................................................................................................34
Appendix 36
Methodology ...........................................................................................................................................................36
About MarketLine....................................................................................................................................................37

Industry Profiles
LIST OF TABLES
Table 1: Canada games software retail market value: $ million, 2016–21 9
Table 2: Canada games software retail market geography segmentation: $ million, 2021 10
Table 3: Canada games software retail market distribution: % share, by value, 2021 11
Table 4: Canada games software retail market value forecast: $ million, 2021–26 12
Table 5: Valve Corporation: key facts 24
Table 6: Valve Corporation: Key Employees 25
Table 7: Amazon.com, Inc.: key facts 26
Table 8: Amazon.com, Inc.: Annual Financial Ratios 28
Table 9: Amazon.com, Inc.: Key Employees 29
Table 10: Amazon.com, Inc.: Key Employees Continued 30
Table 11: GameStop Corp: key facts 31
Table 12: GameStop Corp: Annual Financial Ratios 32
Table 13: GameStop Corp: Key Employees 33
Table 14: Canada size of population (million), 2017–21 34
Table 15: Canada gdp (constant 2005 prices, $ billion), 2017–21 34
Table 16: Canada gdp (current prices, $ billion), 2017–21 34
Table 17: Canada inflation, 2017–21 34
Table 18: Canada consumer price index (absolute), 2017–21 35
Table 19: Canada exchange rate, 2017–21 35

Industry Profiles
LIST OF FIGURES
Figure 1: Canada games software retail market value: $ million, 2016–21 9
Figure 2: Canada games software retail market geography segmentation: % share, by value, 2021 10
Figure 3: Canada games software retail market distribution: % share, by value, 2021 11
Figure 4: Canada games software retail market value forecast: $ million, 2021–26 12
Figure 5: Forces driving competition in the games software retail market in Canada, 2021 13
Figure 6: Drivers of buyer power in the games software retail market in Canada, 2021 14
Figure 7: Drivers of supplier power in the games software retail market in Canada, 2021 15
Figure 8: Factors influencing the likelihood of new entrants in the games software retail market in Canada, 2021 17
Figure 9: Factors influencing the threat of substitutes in the games software retail market in Canada, 2021 18
Figure 10: Drivers of degree of rivalry in the games software retail market in Canada, 2021 19

Industry Profiles
2. Market Overview
2.1. Market definition

The games software market includes retail sales of games for domestic games consoles, handheld games consoles,
mobile phones and other wireless devices; and games for PC and Mac desktop computers. Online games are
excluded (e.g. Second Life). Console hardware sales are excluded. All market data and forecasts are represented as
a consumer expenditure in retailers which includes sales taxes (e.g. VAT) and figures presented are in nominal
terms (i.e., without adjustment for inflation) and all currency conversions used in the creation of this report have
been calculated using constant 2021 annual average exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

The Canadian games software market remained on the strong growth trajectory of recent years, with its value
decreasing by 4.3% in 2021. Over the forecast period, the Canadian games software market is expected to remain
on a strong growth trajectory.
The Canadian market posted decelerated sales growth in 2021 compared to 2020, amid demand saturation from
the spike in sales a year earlier. Semiconductor shortages and continued logistical issues, owing to the pandemic,
also impacted the Canadian market. The delayed release of ninth generation consoles from Sony and Xbox and
limited supply stocks had a knock-on-effect on the sale of video games. Gamers waiting for the purchase of these
new consoles had held off from purchasing new game titles on their existing consoles. Additionally, the shortage
has led to a price hike in PC components, particularly graphics cards, which are essential to playing modern video
games. Without the consoles to play games or the cards to run games, games software will have seen lower
demand than in normal market conditions.
The Canadian games software market had total revenues of $1.8 billion in 2021, representing a compound annual
growth rate (CAGR) of 7.2% between 2016 and 2021. In comparison, the US and Mexican markets grew with
CAGRs of 2.4% and 7.8% respectively, over the same period, to reach respective values of $21.0 billion and $0.9
billion in 2021.
The market has kept expanding in recent years, driven by the growing interest in video game entertainment.
Individuals worldwide, including in Canada, are spending an increasing proportion of their leisure time in video
games. Additionally, the consumer audience has also expanded with regards to age—the average age of gamers
has been shifting upwards in recent years—given that millennials who were first acquainted with modern video
games remain attached to them, while the market keeps adding new consumers from younger ages.

Industry Profiles
Additionally, the improving multiplayer features and graphics quality, facilitated by the growing penetration of
ultra-high speed internet connections and technological improvements in hardware, have enhanced the gaming
experience. This is particularly seen with smartphones, where the even greater processing capacity and graphics
have unlocked an emerging revenue stream in mobile gaming. High-speed connections have reduced the barriers
for consumers to download large files, such as games, resulting in the marked increase in online sales of games.
Over recent years, online distributors have consolidated their market share as games have become more online
than previously. It is rare to find games without an online/multiplayer option and rarer still to not find a game on
either the PlayStation Store, Xbox Live, or Steam.
Moreover, the market has also been driven by price increases over the past two years; 2020 was the year that the
price of video games software increased in real terms for the first time in over a decade amid high demand during
the lockdown period.
The online specialists channel posted the strongest performance during the historic period, recording a CAGR of
27.4% in distribution terms between 2016 and 2021. During the same period, the other online retail channel
posted a CAGR of 20.8%, while the value, discount and variety stores and general merchandise retail channel
posted a CAGR of 8.1% in distribution terms. Consumers have been more tempted to purchase video games and
downloadable content (DLC) through established online channels such as PlayStation’s PSN, Xbox’s Xbox Live, or
Nintendo Store, or having them delivered, strengthening online sales. The online specialists and online retail
channels have benefited the most since 2020 amid the COVID-19 pandemic and the lockdowns imposed during
2020 and 2021, with physical stores shutting down or operating at reduced capacity. Even after the end of
lockdowns, demand in these two channels is set to remain strong as consumers have become more adapted to
online purchases.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 5.8% over 2021–26, which is
expected to drive the market to a value of $2.4 billion by the end of 2026. Comparatively, the US and Mexican
markets will grow with CAGRs of 3.9% and 9.7% respectively, over the same period, to reach respective values of
$25.4 billion and $1.5 billion in 2026.
Over the forecast period, the Canadian games software market is expected to remain on a strong growth
trajectory. Domestic demand in Canada is expected to see good growth over the forecast period, higher than that
seen between 2020 and 2021 according to OECD projections, with improving consumer confidence to stimulate
spending in the games software market.
Apart from popular yearly sports title releases such as FIFA, F1, and NBA 2K, the market is expected to see many
anticipated title releases that will drive sales. New high-profile releases for 2022 include Call of Duty: Modern
Warfare 2, God of War: Ragnarok, Valkyrie Elysium, Midnight Fight Express, Overwatch 2, A Plague Tale: Requiem
and Bayonetta 3; as well as Dead Island 2, Hogwarts Legacy, Resident Evil 4 Remake, Final Fantasy 16, Avatar:
Frontiers of Pandora, Final Fantasy 7 Rebirth, ST.A.L.K.E.R. 2: Heart of Chernobyl, Diablo 4, Spiderman 2, and
Oxenfree 2: Lost Signals in 2023; as well as Wonder Woman, Marvel's Wolverine, Star Wars: Knights of the Old
Republic Remake, Dragon Age: Dread Wolf, Ubisoft's Star Wars game, The Elder Scrolls 6, Prince of Persia: The
Sands of Time remake, and Vampire: The Masquerade - Bloodlines 2, which are schedule to be released after
2023.
Price increases are also set to be seen over the forecast period as a result of rising inflation pressure, and that is
expected to push the value of the market upwards. Additionally, video game console developers are to increase
the prices of their video game titles in an effort to absorb increasing production costs, which are also due to the
semiconductor shortage.

Industry Profiles
3. Market Data
3.1. Market value

The Canadian games software retail market grew by 4.3% in 2021 to reach a value of $1,783.5 million.
The compound annual growth rate of the market in the period 2016–21 was 7.2%.
Table 1: Canada games software retail market value: $ million, 2016–21
Year $ million C$ million € million % Growth

2016 1,259.4 1,579.0 1,064.4
2017 1,365.5 1,712.0 1,154.1 8.4%
2018 1,469.2 1,842.0 1,241.7 7.6%
2019 1,578.5 1,979.0 1,334.0 7.4%
2020 1,709.3 2,143.0 1,444.6 8.3%
2021 1,783.5 2,236.0 1,507.3 4.3%
CAGR: 2016–21 7.2%

SOURCE: MARKETLINE MARKETLINE
Figure 1: Canada games software retail market value: $ million, 2016–21

Industry Profiles
4. Market Segmentation
4.1. Geography segmentation

Canada accounts for 7.2% of the Americas games software retail market value.
The United States accounts for a further 84.6% of the Americas market.
Table 2: Canada games software retail market geography segmentation: $ million, 2021
Geography 2021 %
United States 20,953.0 84.6
Canada 1,783.5 7.2
Mexico 923.1 3.7
Rest of the Americas 1,111.8 4.5
Total 24,771.4 100%

Figure 2: Canada games software retail market geography segmentation: % share, by value, 2021

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4.2. Market distribution

Music, video and entertainment specialists form the leading distribution channel in the Canadian games software retail
market, accounting for a 33.6% share of the total market's value.
Online specialists accounts for a further 28.9% of the market.
Table 3: Canada games software retail market distribution: % share, by value, 2021
Channel % Share
Music, video and entertainment specialists 33.6%
Online specialists 28.9%
Other online retail 23.0%
Discount, variety and general merchandise stores 1.3%
Other 13.2%
Total 100%
Figure 3: Canada games software retail market distribution: % share, by value, 2021

Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2026, the Canadian games software retail market is forecast to have a value of $2,365.7 million, an increase of
32.6% since 2021.
The compound annual growth rate of the market in the period 2021–26 is predicted to be 5.8%.
Table 4: Canada games software retail market value forecast: $ million, 2021–26
Year $ million C$ million € million % Growth

2021 1,783.5 2,236.0 1,507.3 4.3%
2022 1,899.1 2,381.0 1,605.0 6.5%
2023 2,030.7 2,546.0 1,716.3 6.9%
2024 2,129.6 2,670.0 1,799.8 4.9%
2025 2,244.5 2,814.0 1,896.9 5.4%
2026 2,365.7 2,966.0 1,999.4 5.4%
CAGR: 2021–26 5.8%

Figure 4: Canada games software retail market value forecast: $ million, 2021–26

Industry Profiles
6. Five Forces Analysis

The games software retail market will be analyzed taking online and physical games software retailers as players.
The key buyers will be taken as individual end consumers, and games software publishers, games console
developers as the key suppliers.
6.1. Summary
Figure 5: Forces driving competition in the games software retail market in Canada, 2021
In the games software market, there is a tendency towards consolidation as large, diversified retailers acquire ever-
increasing shares of the market. The Canadian market is home to over 200 GameStop stores, while the market
dominance of Amazon intensifies rivalry further.
There is little brand loyalty in the games software market, with the focus being on individual titles. This grants power to
the individual consumer, although a strong franchise will negate this, something which has been seen with Nintendo.
There are different sized suppliers operating within the market. Small development studios compete through creative
designs and by partnering with large publishers. Large companies publish a portfolio of titles and have the advantage of
economies of scale in manufacturing, marketing, distribution, and selling.
Different scenarios of entering the market are possible and small entry operations may be successful. An online
company is the most likely route to success here thanks to the reduced fixed costs and lower exit barriers. However,
owing to logistical problems caused by the pandemic, it may be impossible for a smaller firm to compete with the
delivery options provided by larger operations, particularly Amazon Prime etc.
Large conglomerates are beginning to increase their presence in the market significantly as they can use their
bargaining power with suppliers to offer consumers video games at lower prices than smaller, more localized
operations. Moreover, major players such as Amazon have been successful at negotiating exclusive content, particularly
for customers pre-ordering titles. This is increasing barriers to entry and ratcheting up rivalry as it is becoming
necessary to offer these extras to compete and independent players cannot secure them.

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6.2. Buyer power
Figure 6: Drivers of buyer power in the games software retail market in Canada, 2021
The games software market has an abundance of buyers with limited financial power. According to the Entertainment
Software Association of Canada, there are around 23 million video gamers in Canada; approximately 61% of the total
population. Nevertheless, this is a large portion of society and the large number of buyers, a majority being individual
customers, weakens buyer power. However, consumer demand is expected to exert strong pull-through on retailers
and products they stock. As each hardware platform has a large number of games available for it, it is unlikely that
many consumers would change from one platform to another simply to be able to play a game, thus switching costs are
negligible. Exclusivity deals are negotiated for only a handful of franchises, meaning consumers are also unlikely to miss
out. These are also becoming increasingly rare, as studios seek to compensate for increased production costs by
maximizing their product's reach. The budget for the bestseller Grand Theft Auto V, the bestselling game in the world,
was $265 million. Recent trends have seen downloadable content deals negotiated, with bonus content assigned to a
retailer for consumers to access if they pre-order games.
Brand loyalty is relatively low within this market and although leading companies achieve a degree of brand recognition
and success through established games lines, the success of individual titles is highly dependent upon critical review.
However, some game franchises and even software studios foster a dedicated following, which may undermine buyer
power. For instance, EA concedes that FIFA alone represented approximately 11% of net revenue in FY2019, out of a
range of 18 new EA releases. In some cases, there is a degree of forward integration, with developers offering their
content direct from their website. This is most prevalent in PC gaming.
Video games are not an essential product and considered a form of home and portable entertainment, therefore buyer
power is weakened, with consumers likely to reduce spending on gaming software in favor of more essential items in
times of economic turmoil. However, video games have become one of the most popular leisure activities in Canada
and their popularity has weakened buyer power as consumers feel increasingly compelled to invest in game software as
a source of entertainment over other leisure activities. This was exacerbated throughout 2020, as lockdown restrictions
limited the availability of alternative leisure activities, making game software increasingly attractive.
These factors tend to somewhat strengthen buyer power, which is assessed as moderate overall.

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6.3. Supplier power
Figure 7: Drivers of supplier power in the games software retail market in Canada, 2021
Small development studios compete through creative designs and by partnering with large publishers. Large companies
publish a portfolio of titles and have the advantage of economies of scale in manufacturing, marketing, distribution, and
selling. The largest of these companies, known in the industry as Triple A publishers, are large multinationals with a
long-established presence within the global market and strong brand recognition. Such companies can exert stronger
bargaining power as retailers need to stock popular products to meet customer demand.
The likes of Microsoft, Nintendo, Activision Blizzard, Electronic Arts, Namco, King Digital Entertainment, and Ubisoft /
Vivendi are among some of the most prestigious game publishers. These companies release some of the most popular
and lucrative gaming titles and franchises that are essential for game software retailers if they are to generate high sale
volumes and compete with rival retailers.
As a result of large publishers releasing the majority of popular gaming titles, these companies dominate retailer’s
costs. 77% of new product purchases from multinational game retail chain, GameStop, are from the top 10 vendors.
Nintendo, Sony, Microsoft, Electronic Arts, and Take-Two Interactive accounted for 28%, 18%, 6%, 5%, and 5%,
respectively, of the group's new product purchases during fiscal 2019. Retailers must develop strong and healthy
relationships with vendors. If suppliers do not provide companies with favorable business terms, they will struggle to
offer products to customers at competitive prices.
Possibilities of forward integration for suppliers exist in the form of developing their own online distribution centers, or
focusing on online gaming, an area that is increasing in popularity in Canada. In particular, EA has developed its own
distribution software Origin for its PC users. However, there are many software publishers operating within the market,
and the product they offer is characterized by short life cycles and frequent introductions of new products, which again
need to achieve significant market acceptance to appear on retailers’ shelves. Even the most successful titles remain
popular only for a limited period of time, which weakens the power of software providers. There is the possibility of
longevity in the PC market, where modifications to the game (known colloquially as "mods") are available to offer
unofficial content and prolong a game's lifespan.
There are also mid-size publishers, which can hold some market share but lack the scale and influence of the bigger
publishers. In some cases, these companies can be publisher arms of a wider media conglomerate, such as Warner
Brothers Interactive, a subsidiary of AT&T.
Another alternative is the games-as-a-service model, currently employed by Activision Blizzard and Electronic Arts. As
part of the transition to the games as a service model, many AAA publishers have been increasing their efforts to

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introduce micro-transactions into games, with EA and Activision Blizzard at the forefront. Developers are looking at
ways to sustain revenues for as long as possible, through downloadable content, cosmetic micro-transactions, and loot
boxes, a consumable virtual item which can be redeemed to receive a randomized selection of further virtual items,
ranging from simple customization options for a player's avatar or character, to game-changing equipment such as
weapons and armor.
Supplier power within the games software market is assessed as moderate overall.

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6.4. New entrants
Figure 8: Factors influencing the likelihood of new entrants in the games software retail market in Canada, 2021
Barriers to entry are not particularly high. It is possible to start retail activities on a small scale, with an online presence
reducing fixed costs and lowering the exit barriers. However, economies of scale are an issue as large retailers utilize
their size to offer a diversified range of products and they can exert strong bargaining power negotiating on prices with
suppliers, some of which they are able to pass on to consumers.
Online pureplay has become the largest distribution channel in Canada, mainly thanks to the presence of Amazon. This
represents a serious barrier to new entrants. Amazon’s scale means it is extremely difficult to beat on price and its
networks mean that there is little chance smaller players could rival its delivery promises, at least on a nationwide scale.
Digital distributors will struggle as Valve's Steam platform is firmly entrenched in the PC market as the primary delivery
platform. For mobile games, the platforms are again generally monopolized by the operating software's store front,
such as Apple's App Store for iPhone or Google Play for Android. This is also seen in the increasingly popular world of
digitally downloaded console games, where store fronts such as PlayStation Store are de facto monopolies for the given
console.
The fact that switching costs are low and consumers are largely prone to switch if lower prices and good quality
products are offered is favorable to new entrants but this is largely negated by the factors explored above and by a
market that is declining at an alarming rate.
The COVID-19 pandemic made it increasingly difficult for new entrants to infiltrate the market as consumers have
shifted to online channels to purchase video games, where ecommerce platforms including Amazon already dominate.
Establishing a strong digital retail presence would require significant investments in marketing. Companies with a strong
online platform that could facilitate game software sales have benefited most during the pandemic, especially when
58% of adult Canadian gamers admitted to playing more games than usual during the pandemic, according to the
Entertainment Software Association of Canada.
Overall, the threat of newcomers is moderate within the market.

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6.5. Threat of substitutes
Figure 9: Factors influencing the threat of substitutes in the games software retail market in Canada, 2021
In terms of the product itself, other forms of screen entertainment can be considered the substitutes to games
software.
Streaming services such as Netflix have massively disrupted the broadcast media market, and viewing behavior has
changed such that single big-name shows can compete for consumers' screen-time with video games. These over-the-
top (OTT) entertainment services do not yet offer the interactive element of games software, however. As this market
is defined, the threat of cloud gaming is the primary threat. Google was the first big player to offer a cloud-based OTT
gaming platform in 2019, called Stadia, which threatened to bypass traditional software retailers completely. Joining
Google is Nvidia with its cloud gaming platform GeForce Now, Microsoft and its platform, Xbox Cloud Gaming, as well as
independent cloud gaming companies such as Vortex. However, with Stadia shutting down from January 2023 as it
failed to gain traction with developers and users, which had to develop and own a Stadia version of their games, it
becomes evident that the potential of independent cloud-based platforms is limited.
Illegal copies of games software are posing a rising threat not only for retailers but also game software developers’
revenues, and as broadband connections become more widely accessible, they can be easily downloaded online. Some
companies such as Microsoft have implemented anti-piracy measures with a good degree of success.
Overall, the threat of substitutes is assessed as strong.

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6.6. Degree of rivalry
Figure 10: Drivers of degree of rivalry in the games software retail market in Canada, 2021
Amongst the players within the Canadian games software market, there are both large and smaller sized retailers. Large
conglomerates can be very competitive on price as they wield significant bargaining power over suppliers. While rivalry
exists between these players, the variety of different companies and businesses active in this market can alter the
severity of rivalry between players. For example, rivalry between specialist stores is strong, with the companies all
dependent on the sale of game software. Specialist game software retailers may consider general retailers such as
Amazon and supermarkets such as Walmart to be some of its strongest competitors, but because video game sales only
account for a small percentage of Amazon and Walmart's sales, specialists such as GameStop are not considered a
significant competitor for these larger, more diversified retailers.
The presence of such large players all capable of negotiating good prices that can be passed on to consumers, as well as
additional exclusive content, intensifies rivalry and makes it very difficult for smaller players to compete. Furthermore,
diversification is crucial in this market due to its great vulnerability to economic downturns. As these products are non-
essential goods, consumer confidence largely determines demand. As a result, unlike players reliant on games software,
operationally and geographically diversified players are more robust to negative shocks in demand, and are therefore
able to sustain lower profit margins for longer.
Online pureplay has become the largest distribution channel in Canada, mainly thanks to the presence of Amazon.
Amazon’s scale means it is extremely difficult to beat on price and its networks mean that there is little chance smaller
players could rival its delivery promises, at least on a nationwide scale. Smaller, more localized enterprises are unable to
do this and often suffer as a result. These factors combined have seen the German market become increasingly
homogenized as independents have increasingly been forced to close their doors for good.
The competition is also boosted by low switching costs and the willingness of customers to switch to a new player if a
better offer is presented. The market has been declining, which has intensified rivalry.
Establishing both physical and online presences comprise high setup and advertising costs. This has been exacerbated
by the pandemic, particularly the feasibility of physical retail. As consumers have become accustomed to the
convenience of online retail, physical retail store revenues are expected to fall. Further, with the pandemic causing a
significant increase in work-from-home opportunities, physical retail will record lower footfall, particularly during the
workweek.
The disruption caused by the COVID-19 pandemic throughout 2020 and 2021 has also had a significant impact on the
rivalry between market players. As coronavirus-related restrictions continued to effect consumers and businesses

Industry Profiles
across the globe, consumers have found themselves looking for home entertainment, including increased spending on
game software. Microsoft, Nintendo, Twitch, and Activision have thrived under lockdown conditions. In April, Microsoft
disclosed that the number of subscribers to its Game Pass service reached 10 million. However, for game specialist
stores such as GameStop and GAME, the pandemic has been far from beneficial. These companies rely more on in-
store purchases and although they have experienced a surge in online sales, this was not significant enough to
compensate for a loss of sales from retail stores. Furthermore, supermarkets and some general retailers considered
essential places of business were able to remain open during lockdown, allowing them to continue selling game
software despite specialist stores having to close.
Overall, competition in the market is moderate.

Industry Profiles
7. Competitive Landscape
The video game industry is intensely competitive and subject to rapid changes in consumer preferences and
frequent new product introductions. The competitive landscape consists of video game and related specialty
stores, mass merchants and regional chains; computer product and consumer electronics stores; and toy retail
chains and direct sales by software publishers. Online environments have also become more competitive, with the
likes of Sony (PlayStation Network), Microsoft (Xbox Live), and Nintendo (Nintendo Switch Online), as well as other
online retailers and game rental companies, gaining shares of digital software sales. The coronavirus pandemic has
accelerated spending online, which has benefited leading players that already have a sophisticated online business
model in place as well as businesses that are considered as essential, such as supermarkets, which have continued
to sell gaming software.
7.1. Who are the leading players?

GameStop, the world’s largest video game omni-channel retailer, operates approximately 4,600 stores across 14
countries and offers a selection of new and pre-owned video gaming consoles, accessories, and video game titles,
in both physical and digital formats. In terms of gaming software, the company provides new and pre-owned video
game software for current and certain prior generation consoles, as well as a wide variety of in-game digital
currency, digital downloadable content (DLC), and full-game downloads in its stores and via its ecommerce
properties. The company also operates an ecommerce platform, www.gamestop.com, and Game Informer
magazine, the world's leading print and digital video game publication.
Amazon is an American multinational technology company focused on the ecommerce sector and is the world's
largest online marketplace. The company offers a range of products and services through its physical stores and
ecommerce site, amazon.com. It also offers a range of merchandise, including books, apparel, home and garden
tools, toys and baby games, sports and outdoor products, automotive and industrial products, and other general
merchandise products.
Steam is a video game digital distribution service by Valve—an American video game developer, publisher, and
digital distribution company headquartered in Bellevue, Washington. Steam operates as a desktop marketplace
and primarily specializes in PC gaming software. It originally started as a platform to automatically update games
produced by its parent company and now provides gaming software from a variety of third-party game
developers.
7.2. What strategies do the leading players follow?

GameStop focuses on web-based marketing, which provides an opportunity to maximize sales, traffic, and
customer loyalty. Extensive marketing activities help in building customer awareness and loyalty and allow the
company to reach customers across the country. It conducts website promotions and contests to attract the
customers. In line with this, GameStop PowerUp offers a rewards loyalty program through an online portal,
poweruprewards.com. The customers can gain reward points, shop for rewards, see customized
recommendations, and maintain video game libraries through this portal. Such loyalty programs help the company
to increase brand loyalty, gain valuable insights, acquire new customers, provide customers unique exclusive
offers, launch new business initiatives, and drive overall market share for GameStop. GameStop is focusing on its
core business, video games and collectibles, and has started to sell parts of the business that don’t align with its
core to reduce debt and streamline the company. The group is also investing in developing its ecommerce
platform, including the recent relaunch of GameStop.com, to reach customers more broadly across the omni-
channel platform and give them the full spectrum of content and access to products. The company introduced
new services such as Buy Online Pick Up In-Store, which have been essential to encouraging sales, particularly
during the pandemic, which forced stores to close but encouraged curb-side sales. The company’s primary
operating strategy involves delivering a vast merchandise selection to consumers as quickly and as cost-effectively

Industry Profiles
as possible. GameStop uses distribution facilities and inventory management systems to maximize its efficiency.
Despite the negative impact from temporary store closures related to COVID-19, GameStop is still highly reliant on
in-store purchases, which represent approximately 20% of its revenues.
Amazon dominates the online retail market and is a major player in the gaming software space. Amazon can often
undercut prices for new and pre-ordered games as a result of the volume of gaming software the company
expects to sell. Amazon is able to lower profit margins because it anticipates a high volume of sales, which makes it
competitive in terms of price. Most importantly, Amazon leverages its strong brand and its free, fast, and reliable
delivery service, offered through the Prime subscription, which butresses customer loyalty. Throughout the
pandemic, consumers have shifted their purchasing habits online, which has benefited ecommerce platforms such
as Amazon who have experienced a surge in sales during lockdown periods.
7.3. What disruptors/challengers have changed the market in recent

years?
Traditional game software retailers are facing an uncertain future as digital sales continue to grow. Digital market
players such as PlayStation Network, Xbox Live, and Nintendo Switch Online allow consumers to purchase games
directly through their consoles.
Next gen games consoles, including a version of the PlayStation 5 and Xbox Series S, have been developed as disc-
less games consoles. Disc-less consoles will significantly reduce the demand for hard disc copies of games, a large
part of physical games retailer sales. In contrast, console developers Sony and Microsoft are expected to benefit,
with owners of discless consoles being forced to purchase gaming software from their online multiplayer gaming
and digital media delivery platforms.
GameStop has been able to minimize the financial impact of a loss of hard disc sales by entering into a multi-year
strategic partnership agreement with Microsoft. Under the conditions of the agreement, GameStop will benefit
from a lifetime revenue value of each gamer brought into the Xbox ecosystem, meaning the company will receive
a percentage of revenue for every Xbox Series X sold in-store or through its ecommerce channels. GameStop’s
back end and in-store solutions will also be strengthened by Microsoft’s cloud-based business applications and
customer data platform, which will provide insight into customer preferences and purchasing history, real time
information on product availability, subscriptions, pricing, and promotions and allow GameStop to make
meaningful business changes in response to consumer behavior. Microsoft hopes the deal will help drive Xbox
sales across GameStop’s 5,000+ retail stores and its ecommerce platform to compete with its rival console,
PlayStation 5, developed by Sony.
Cloud gaming has also become a major threat to traditional game software retailers. The emergence of online
gaming platforms such as Stadia (Google), G Force Now (Nvidia), Vortex, Steam Cloud Play (Steam), and
PlayStation Now (Sony) have provided consumers with alternative gaming options that have removed the need for
gaming consoles by allowing customers to purchase games directly on the platforms, which can then be played
across multiple devices, as long as they have an internet connection. Retailers and developers have sought to take
advantage of this market opportunity. In 2019, Tencent partnered with Nvidia to develop Tencent Games’ START
cloud gaming service, which launched as a beta-version during the first months of 2020. START’s cloud gaming
service lets players play games using the cloud, which means they do not need high-end computers to enjoy the
best gaming experience. In 2021, SEGA Corporation and Microsoft Corporation partnered in a strategic alliance
that explores ways for SEGA to produce large-scale, global games in a next-generation development environment
built on Microsoft’s Azure cloud platform.
7.4. What is the biggest theme in the market?

Game consoles and game vendors have attempted to integrate further into game development in recent years by
acquiring or strenghtening ties with big-name publishers and studios. In this way, they seek to control a greater
part of the value chain and shield against threats from cloud-based vendors.

Industry Profiles
In August 2022, Tencent Holdings and Sony partnered to acquire about one-third of Elden Ring developer studio,
FromSoftware. After this transaction, Tencent owns 16.25% of FromSoftware’s shares, while Sony Interactive
Entertainment owns 14.09%. In January 2021, Sony acquired Destiny 2 and Halo maker, Bungie, for $3.6 billion,
also acquiring Housemarque, the maker of PS5 game "Returnal" the same year. Earlier in 2020, Sony bought
Insomniac Games. Similarly, Tencent acquired the Norwegian MMO house Funcom in early 2020. On July 19, 2021,
Tencent agreed to acquire UK video game firm Sumo for $1.2 billion (£919 million) or $0.66 (£0.51) a share.
Despite the global video game market expecting to decelerate in 2021 after record growth, Tencent has displayed
aggressiveness in acquiring a promising UK games studio. Sumo worked on the Hitman games (in collaboration
with IO interactive), the Sonic racing series, and the popular Little Big Planet series for Sony. Tencent previously
acquired Riot games, the developer of League of Legends, and has stakes in Epic Games, the Fortnite developer,
and Supercell, the maker of mobile game Clash of Clans. In May 2022, Tencent also announced its first US studio,
Jackalope Games, based in Austin, Texas, the US. Through this, the company has encouraged and opened up to
innovation and has allowed developers to produce games that excite players globally. Microsoft has also engaged
in high-profile video game studio acquisitions. In May 2022, the company acquired Zenimax media for $7.5 billion,
following the announcement of the record $69 billion acquisition of Activision Blizzard, which has yet to complete.

Industry Profiles
8. Company Profiles
8.1. Valve Corporation
8.1.1. Company Overview
Valve Corporation (Value) is an entertainment and gaming software and technology provider company. The
company’s product portfolio includes underlords, artifact, counter-strike: global offensive, dota 2, team fortress
2, half-life, left 4 dead, portal, half-life 2, left 4 dead 2, portal 2. It also makes consumer devices for gaming on
the PC such as steam controller, steam link, virtual reality technology. The company market its product under
Counter-Strike, DOTA, Portal brands. Valve is a developer of leading-edge technologies including the source
game engine and steam. Value is headquartered in Bellevue, Washington, the US.
8.1.2. Key Facts
Table 5: Valve Corporation: key facts
Head office: P.O. Box 1688 Bellevue, Washington, United States

Number of Employees: 201
Website: www.valvesoftware.com
Financial year-end: April
SOURCE: COMPANY WEBSITE MARKETLINE

Industry Profiles
Table 6: Valve Corporation: Key Employees
Name Job Title Board

Gabe Newell Chief Executive Officer Senior Management
Scott Lynch Chief Operating Officer Senior Management
SOURCE: COMPANY FILINGS MARKETLINE

Industry Profiles
8.2. Amazon.com, Inc.
Amazon.com, Inc. (Amazon or 'the company') is a retailer that offers its products through online and physical
stores. The company offers a range of merchandise, including books, apparel, home and garden tools,
electronics, toys and baby games, sports and outdoor products, automotive and industrial products and other
general merchandise products. It also provides services that includes web services, order fulfillment, publishing,
advertising, and co-branded credit cards services. The company manufactures and sells electronic devices,
including Kindle e-readers, Fire tablets, Fire televisions (TVs) and Echo. Amazon markets its products through its
website, www.amazon.com. Amazon also operates through various international websites. It has business
presence across North America, Europe, and Asia-Pacific. Amazon is headquartered in Seattle, Washington, the
US.
The company reported revenues of (US Dollars) US$469,822 million for the fiscal year ended December 2021
(FY2021), an increase of 21.7% over FY2020. In FY2021, the company’s operating margin was 5.3%, compared
to an operating margin of 5.9% in FY2020. In FY2021, the company recorded a net margin of 7.1%, compared to
a net margin of 5.5% in FY2020. The company reported revenues of US$127,101 million for the third quarter
ended September 2022, an increase of 4.8% over the previous quarter.
8.2.2. Key Facts
Table 7: Amazon.com, Inc.: key facts
Head office: 410 Terry Avenue North , Seattle, Washington, United States
Telephone: 12062661000
Fax: 13026365454
Website: www.amazon.com
Financial year-end: December
Ticker: AMZN
Stock exchange: NASDAQ
8.2.3. Business Description
Amazon.com, Inc. (Amazon or 'the company') is an online retailer. The company offers a range of products and
services through its physical stores and e-commerce site, amazon.com. It also offers a range of merchandise,
including books, apparel, home and garden tools, toys and baby games, sports and outdoor products, automotive
and industrial products and other general merchandise products. It also sells electronic devices, such as Fire
tablets, Kindle e-readers, Echo devices and Fire TVs. Moreover, it offers a membership program called Amazon
Prime, which provides customers unlimited free shipping options on over 100 million items, access to unlimited
streaming of thousands of movies and TV episodes, and other benefits. The company also provides advertising
services and order fulfillment services to its consumers.
The company operates through three business segments: North America, International and Amazon Web Services
(AWS).
Under the North America segment, the company sales consumer products (including from sellers) and handles
subscriptions through North America-focused online and physical stores. This segment also includes export sales
generated from the online stores. In FY2021, the North America segment reported revenue of US$279,833 million,
which accounted for 59.6% of the company's revenue.

Industry Profiles
The International segment includes the retail sales of consumer products (including from sellers) and subscriptions
from internationally focused online stores. This segment also includes export sales from international online stores
(including export sales from their respective sites to customers in the US, Canada and Mexico), but excludes export
sales from North American online stores. In FY2021, the International segment reported revenue of US$127,787
million, which accounted for 27.2% of the company's revenue.
The Amazon Web Services (AWS) segment includes global sales of storage, database, compute, and other AWS
service offerings for start-ups, enterprises, government agencies, and academic institutions. In FY2021, the AWS
segment reported revenue of US$62,202 million, which accounted for 13.2% of the company's revenue.
Amazon serves four primary customer sets: consumers, sellers, developers and enterprises, and content creators.
The company also develops and produces media content. It serves sellers by offering programs that enable them
to sell their products on their websites and on Amazon's websites. It also serves developers and enterprises
through AWS, which provides a broad set of global compute, storage, database, and other service offerings.
Amazon serves content creators such as authors and independent publishers through Kindle Direct Publishing, an
online platform that allows independent authors and publishers to select a royalty option and make their books
available in the Kindle Store. Amazon also offers its own publishing arm, Amazon Publishing. It also offers programs
that allow authors, musicians, filmmakers, application developers, and others to publish and sell content.
Geographically, the company classifies its operations into five regions: the US, Germany, Japan, the UK, and Rest of
the World. It serves customers through global fulfillment centers, retail locations, data centers, corporate offices,
and tech hubs across the globe. It primarily markets the electronics and media content to its centers operating in
North America and other international markets and through agreements in certain countries. It also allows various
sellers and other third parties to offer their products through its e-commerce portal. As of December 2021, the
company operated 672 North America and seven international stores. Users can avail of these services through
mobile applications. A strong distribution channel network helps the group in catering to the needs of its customer
base. In FY2021, the US accounted for 66.8% of the company's revenue, followed by Germany (7.9%), the UK
(6.8%), Japan (4.9%), and Rest of the World (13.5%).

Industry Profiles
Table 8: Amazon.com, Inc.: Annual Financial Ratios

Key Ratios 2017 2018 2019 2020 2021
Growth Ratios
Sales Growth % 30.80 30.93 20.45 37.62 21.70
Operating Income Growth % -1.91 202.51 17.07 57.48 8.65
EBITDA Growth % 26.68 78.14 30.86 32.54 22.90
Net Income Growth % 27.92 232.11 15.04 84.08 56.41
EPS Growth % -7.08 335.70 15.93 168.37 4.99
Working Capital Growth % 17.76 189.97 27.00 -25.51 204.25
Equity Ratios
EPS (Earnings per Share) USD 0.23 0.99 1.15 3.09 3.24
Book Value per Share USD 2.86 4.43 6.23 9.28 13.58
Profitability Ratios
Gross Margin % 37.07 40.25 40.99 39.57 42.03
Operating Margin % 2.31 5.33 5.18 5.93 5.30
Net Profit Margin % 1.71 4.33 4.13 5.53 7.10
Profit Markup % 58.90 67.36 69.46 65.47 72.51
PBT Margin (Profit Before Tax) % 2.14 4.84 4.98 6.26 8.12
Return on Equity % 10.95 23.13 18.67 22.84 24.13
Return on Capital Employed % 5.59 13.18 10.58 11.75 8.94
Return on Assets % 2.83 6.85 5.97 7.81 9.00
Return on Working Capital % 177.44 185.11 170.63 360.73 128.81
Operating Costs (% of Sales) % 97.69 94.67 94.82 94.07 94.70
Administration Costs (% of Sales) % 21.92 22.40 22.93 22.59 24.79
Liquidity Ratios
Current Ratio Absolute 1.04 1.10 1.10 1.05 1.14
Quick Ratio Absolute 0.76 0.85 0.86 0.86 0.91
Cash Ratio Absolute 0.35 0.46 0.41 0.33 0.25
Leverage Ratios
Debt to Equity Ratio Absolute 1.59 1.13 0.67 0.55 0.52
Net Debt to Equity Absolute 0.47 0.18 -0.21 -0.36 -0.17
Debt to Capital Ratio Absolute 0.61 0.53 0.40 0.35 0.34
Efficiency Ratios
Asset Turnover Absolute 1.66 1.58 1.45 1.41 1.27
Fixed Asset Turnover Absolute 4.56 4.21 3.51 3.11 2.56
Inventory Turnover Absolute 8.14 8.38 8.79 10.53 9.65
Current Asset Turnover Absolute 3.36 3.44 3.27 3.37 3.19
Capital Employed Turnover Absolute 2.42 2.47 2.04 1.98 1.69
Working Capital Turnover Absolute 76.87 34.71 32.92 60.82 24.33

Industry Profiles
Table 9: Amazon.com, Inc.: Key Employees

Adam Selipsky Chief Executive Officer Amazon Web Services Senior Management
Albert Cheng Vice President Prime Video, US Senior Management
Andrew R. Jassy Chief Executive Officer Executive Board
Andrew R. Jassy Director Executive Board
Andrew R. Jassy President Executive Board
Anuradha Aggarwal Chief Marketing Officer Amazon Pay Senior Management
Anuradha Aggarwal Director User Growth Senior Management
Brian T. Olsavsky Chief Financial Officer Senior Management
Brian T. Olsavsky Senior Vice President Senior Management
Global Head - Movies Marketing, Amazon
Christian Davin Senior Management
Studios
Claire Peters Vice President Worldwide Amazon Fresh Senior Management
Daniel P. Huttenlocher Director Non Executive Board
David A. Zapolsky General Counsel Senior Management
David A. Zapolsky Secretary Senior Management
David A. Zapolsky Senior Vice President Senior Management
David Simonsen Director Prime Video, Southeast Asia Senior Management
Chief Executive Officer Worldwide Amazon
Doug Herrington Senior Management
Stores business
Edith W. Cooper Director Non Executive Board
Indra Nooyi Director Non Executive Board
Jamie S. Gorelick Director Non Executive Board
Jeffrey P. Bezos Chairman Executive Board
John Boumphrey Head UK Operations Senior Management
Jonathan J. Rubinstein Director Non Executive Board
Judith A. McGrath Director Non Executive Board
Julie Rapaport Head Movies Senior Management
Keith Alexander Director Non Executive Board
Manesh Mahatme Director Product, e commerce division, India Senior Management
Global Head - Sports Marketing, Amazon
Marc Patrick Senior Management
Prime Video
Matt Newman Head Sports Group Senior Management
Mike Hopkins Head Video Entertainment Business Senior Management

Industry Profiles
Table 10: Amazon.com, Inc.: Key Employees Continued

Patricia Q. Stonesifer Director Non Executive Board
Vice President Amazon Fresh Store
Peter Bowrey Senior Management
Operations
Ruth Diaz Director Amazon Fashion, Europe Senior Management
Sally Singer Head Fashion Direction, Amazon Fashion Senior Management
Shelley L. Reynolds Controller Senior Management
Shelley L. Reynolds Vice President Senior Management
Vice President, Worldwide Controller and
Shelley L. Reynolds Senior Management
Principal Accounting Officer
Soumya Sriraman Head Prime Video Channels, US Senior Management
Tony Hoggett Senior Vice President Physical Stores Senior Management
Wendell P. Weeks Director Non Executive Board

Industry Profiles
8.3. GameStop Corp
GameStop Corp (GameStop) is a retailer of video games. The company merchandises and sells video game
hardware and software products, pre-owned and value video games, consumer electronics, collectible products
and wireless services. It offers services like Testing, Relabel, Repair, Repacking and Redistributing Defective
Video Game Products and Retail services. GameStop stores are located in high-traffic power strip centers, strip
centers, high-traffic shopping malls and pedestrian areas, residing in major metropolitan areas. The company
operates stores under GameStop, EB Games, Game Informer, Electronics Boutique, Zing Pop Culture, Power to
the Players, PowerUp Rewards, Micromania and ThinkGeek banners. The company’s operations are spread
across, the US, Canada, Australia and Europe. GameStop is headquartered in Grapevine, Texas, the US.
The company reported revenues of (US Dollars) US$6,010.7 million for the fiscal year ended January 2022
(FY2022), an increase of 18.1% over FY2021. The operating loss of the company was US$386.3 million in
FY2022, compared to an operating loss of US$237.8 million in FY2021. The net loss of the company was
US$381.3 million in FY2022, compared to a net loss of US$215.3 million in FY2021.
8.3.2. Key Facts
Table 11: GameStop Corp: key facts
Head office: 625 Westport Parkway Grapevine, Texas, United States

Website: www.gamestop.com
Financial year-end: January
Ticker: GME
Stock exchange: New York Stock Exchange
8.3.3. Business Description
GameStop Corp (GameStop) is an omnichannel video game retailer. It is the authorized retailer of AT&T and
certified product reseller of Apple.
The company merchandises its products and services under three categories: Hardware and Accessories, Software,
and Collectibles.
GameStop is engaged in the sale of new and pre-owned video game systems, software and accessories. It offers
video games under GameStop, EB Games and Micromania brand names and also operates e-commerce sites
GameStop, EB Games, Micromania and ThinkGeek brands. Video game brands stores of the company offers
various digital products, including downloadable content, prepaid subscription cards, network points cards,
prepaid digital and digitally downloadable software.
The company purchases its products from wide range of manufacturers, software publishers and several
distributors. The company purchases new products of Nintendo, Sony, Activision Blizzard, Microsoft and Electronic
Arts. As of January 2022, the company operated a total of 4,573 stores in the US, Canada, Australia, and Europe.

Industry Profiles
Table 12: GameStop Corp: Annual Financial Ratios

Key Ratios 2017 2018 2019 2020 2021
Growth Ratios
Operating Income Growth % -8.82 -259.84 43.08 40.49
EBITDA Growth % -8.84 -197.29
Net Income Growth % -90.18 -2039.48 30.03 54.28
EPS Growth % -24.58 -166.53 -25.02 -80.34
Working Capital Growth % 186.81 -12.96 -58.17 -47.35
Equity Ratios
EPS (Earnings per Share) USD 3.07 2.31 -1.54 -1.92 -3.47
Dividend per Share USD 1.48 1.52 1.52
Book Value per Share USD 22.32 21.86 13.10 9.51 6.69
Profitability Ratios
Gross Margin % 31.39 29.07 27.86 29.52 24.75
Operating Margin % 6.05 5.14 -8.47 -6.18 -4.67
Net Profit Margin % 4.43 0.41 -8.12 -7.28 -4.23
Profit Markup % 45.74 40.99 38.62 41.88 32.88
PBT Margin (Profit Before Tax) % 5.38 4.49 -9.09 -6.60 -5.30
Return on Equity % 15.67 1.57 -50.37 -77.01 -49.30
Return on Capital Employed % 14.99 14.12 -37.68 -25.26 -21.05
Return on Assets % 14.20 0.69 -14.81 -13.72 -8.14
Return on Working Capital % 127.03 40.38 -74.16 -100.91 -114.05
Operating Costs (% of Sales) % 93.95 94.86 108.47 106.18 104.67
Administration Costs (% of Sales) % 23.32 22.39 22.76 28.78 29.73
Liquidity Ratios
Current Ratio Absolute 1.22 1.56 1.43 1.32 1.16
Quick Ratio Absolute 0.58 0.92 0.86 0.63 0.71
Cash Ratio Absolute 0.38 0.44 0.74 0.40 0.38
Leverage Ratios
Debt to Equity Ratio Absolute 0.36 0.37 0.61 0.69 0.83
Net Debt to Equity Absolute 0.06 -0.02 -0.60 -0.13 -0.33
Debt to Capital Ratio Absolute 0.27 0.27 0.38 0.41 0.45
Efficiency Ratios
Asset Turnover Absolute 3.20 1.71 1.82 1.88 1.92
Fixed Asset Turnover Absolute 33.82 20.80 24.65 9.48 5.34
Inventory Turnover Absolute 9.75 5.11 4.78 4.32 5.24
Current Asset Turnover Absolute 7.44 3.31 2.70 2.72 3.20
Capital Employed Turnover Absolute 2.48 2.75 4.45 4.09 4.50
Working Capital Turnover Absolute 21.00 7.86 8.75 16.33 24.41

Industry Profiles
Table 13: GameStop Corp: Key Employees

Alan Attal Director Non Executive Board
Andrea Wolfe Vice President Brand Development Senior Management
Diana Saadeh-Jajeh Chief Financial Officer Senior Management
Elliott Wilke Chief Growth Officer Senior Management
Jim Grube Director Non Executive Board
Josh Krueger Vice President Fulfillment Senior Management
Kelli Durkin Senior Vice President Customer Care Senior Management
Ken Suzuki Vice President Supply Chain Systems Senior Management
Lawrence Cheng Director Non Executive Board
Lisa Keglovitz Senior Vice President Human Resources Senior Management
Matt Francis Chief Technology Officer Senior Management
Matthew Furlong Chief Executive Officer Executive Board
Matthew Furlong Director Executive Board
Neda Pacifico Senior Vice President E Commerce Senior Management
Nir Patel Chief Operating Officer Senior Management
Ryan Cohen Chairman Executive Board
Tom Petersen Vice President Merchandising Senior Management
Yang Xu Director Non Executive Board

Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 14: Canada size of population (million), 2017–21
Year Population (million) % Growth

2017 36.6 1.0%
2018 36.9 1.0%
2019 37.3 0.9%
2020 37.6 0.9%
Table 15: Canada gdp (constant 2005 prices, $ billion), 2017–21
Year Constant 2005 Prices, $ billion % Growth

2017 1,445.7 2.2%
2018 1,475.2 2.0%
2019 1,503.0 1.9%
2020 1,529.1 1.7%
Table 16: Canada gdp (current prices, $ billion), 2017–21
Year Current Prices, $ billion % Growth

2017 2,045.7 4.4%
2018 2,130.3 4.1%
2019 2,217.6 4.1%
2020 2,300.9 3.8%
Table 17: Canada inflation, 2017–21
Year Inflation Rate (%)

2017 2.0%
2018 2.0%
2019 2.0%
2020 2.0%

Industry Profiles
Table 18: Canada consumer price index (absolute), 2017–21
Year Consumer Price Index (2005 = 100)

2017 123.7
2018 126.2
2019 128.7
2020 131.3
Table 19: Canada exchange rate, 2017–21
Year Exchange rate ($/C$) Exchange rate (€/C$)

2017 1.2970 1.4663
2018 1.2967 1.5305
2019 1.3271 1.4866
2020 1.3408 1.5301
2021 1.2538 1.4835

Industry Profiles
Appendix
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provide the foundation for all related industry profiles
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and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
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definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
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MarketLine aggregates and analyzes a number of secondary information sources, including:
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be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry Profiles
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MarketLine Industry Profile

Games Software Retail in Canada

Reference Code: 0070-2346

Publication Date: October 2022

Primary NAICS: 511210

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Geography segmentation

1.4. Market rivalry

1.5. Competitive Landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

1.1. Market value ................................................................................................................................................2

1.2. Market value forecast ..................................................................................................................................2

1.3. Geography segmentation.............................................................................................................................2

1.4. Market rivalry...............................................................................................................................................2

1.5. Competitive Landscape ................................................................................................................................2

2.1. Market definition .........................................................................................................................................7

2.2. Market analysis ............................................................................................................................................7

3.1. Market value ................................................................................................................................................9

4.1. Geography segmentation...........................................................................................................................10

4.2. Market distribution ....................................................................................................................................11

5.1. Market value forecast ................................................................................................................................12

6. Five Forces Analysis 13

6.1. Summary ....................................................................................................................................................13

6.2. Buyer power...............................................................................................................................................14

6.3. Supplier power ...........................................................................................................................................15

6.4. New entrants .............................................................................................................................................17

6.5. Threat of substitutes ..................................................................................................................................18

6.6. Degree of rivalry.........................................................................................................................................19

7.1. Who are the leading players? ....................................................................................................................21

7.2. What strategies do the leading players follow?.........................................................................................21

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7.4. What is the biggest theme in the market?.................................................................................................22

8.1. Valve Corporation ......................................................................................................................................24

8.2. Amazon.com, Inc........................................................................................................................................26

8.3. GameStop Corp ..........................................................................................................................................31

9.1. Country data ..............................................................................................................................................34

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Table 5: Valve Corporation: key facts 24

Table 6: Valve Corporation: Key Employees 25

Table 7: Amazon.com, Inc.: key facts 26

Table 8: Amazon.com, Inc.: Annual Financial Ratios 28

Table 9: Amazon.com, Inc.: Key Employees 29

Table 10: Amazon.com, Inc.: Key Employees Continued 30

Table 11: GameStop Corp: key facts 31

Table 12: GameStop Corp: Annual Financial Ratios 32

Table 13: GameStop Corp: Key Employees 33

Table 14: Canada size of population (million), 2017–21 34

Table 15: Canada gdp (constant 2005 prices, $ billion), 2017–21 34

Table 16: Canada gdp (current prices, $ billion), 2017–21 34

Table 17: Canada inflation, 2017–21 34

Table 18: Canada consumer price index (absolute), 2017–21 35

Table 19: Canada exchange rate, 2017–21 35

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2.1. Market definition

2.2. Market analysis

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3.1. Market value

Table 1: Canada games software retail market value: $ million, 2016–21

Year $ million C$ million € million % Growth