conference, J. Paul Raines said GameStop must embrace the growing trend of DLC if it hopes to survive in the category. "Downloadable content is a good thing because it enhances and extends games," he told the panel. While the company doesn't have a direct line to console customers seeking additional content, it does offer retail releases of some high-profile DLC.
Raines believes that the biggest challenge for the downloadable market is customer understanding of DLC's availability and how to access the content. "That business could grow medium double digits today," he told the panel at Southern Methodist University. "Customer acquisition continues to be a huge part of the spend in this business." It is this view that has the company set on informing its customers of new content available for the games it sells.
While it may appear that the sky is falling in the GameStop camp, following cut profit forecasts and share drops during the holiday season, Raines isn't rushing for the closest bomb-shelter. "Rumors of our demise have been greatly exaggerated," he countered. "We'll release financials in a few weeks, so you'll see if we're still in business."