1326380--4/2/2008--GameStop

related topics

{product, market, service}

{debt, indebtedness, cash}

{customer, product, revenue}

{condition, economic, financial}

{operation, international, foreign}

{system, service, information}

{regulation, change, law}

{acquisition, growth, future}

{financial, litigation, operation}

{operation, natural, condition}

{capital, credit, financial}

{product, candidate, development}

{investment, property, distribution}

We depend upon the timely delivery of products. We depend upon third parties to develop products and software. Our ability to obtain favorable terms from our suppliers may impact our financial results. If our vendors fail to provide marketing and merchandising support at historical levels, our sales and earnings could be negatively impacted. The electronic game industry is cyclical, which could cause significant fluctuation in our earnings. Pressure from our competitors may force us to reduce our prices or increase spending, which could decrease our profitability. International events could delay or prevent the delivery of products to our suppliers. Our international operations expose us to numerous risks. There may be possible changes in our global tax rate. If we are unable to renew or enter into new leases on favorable terms, our revenue growth may decline. The ability to download video games and play video games on the Internet could lower our sales. If we fail to keep pace with changing industry technology, we will be at a competitive disadvantage. An adverse trend in sales during the holiday selling season could impact our financial results. Our results of operations may fluctuate from quarter to quarter, which could affect our business, financial condition and results of operations. Our failure to effectively manage new store openings could lower our sales and profitability. If our management information systems fail to perform or are inadequate, our ability to manage our business could be disrupted. We may engage in acquisitions which could negatively impact our business if we fail to successfully complete and integrate them. Litigation and litigation results could negatively impact our future financial condition and results of operations. Legislative actions and potential new accounting pronouncements are likely to cause our general and administrative expenses to increase and impact our future financial condition and results of operations. Risks Relating to Our Indebtedness To service our indebtedness, we will require a significant amount of cash, the availability of which depends on many factors beyond our control. As a result of the mergers, we have significant debt that could adversely impact cash availability for growth and operations and may increase our vulnerability to general adverse economic and industry conditions. Because of our floating rate credit facilities, we may be adversely affected by interest rate changes. Our operations are substantially restricted by the indenture governing the senior notes and the terms of our senior credit facility.

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1326380--4/2/2008--GameStop_Corp.