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GameStop Makes Two Digital Acquisitions

1 Apr, 2011 By: Chris Tribbey

Video game retailer GameStop announced March 31 it had acquired streaming technology company Spawn Labs, and had agreed to purchase digital distribution company Impulse.

The acquisitions show GameStop’s intent to move aggressively into the digital delivery of games, CEO J. Paul Raines said April 1 during a presentation to investors. Once integration and testing of Spawn Labs streaming is complete, GameStop expects to make available a wide selection of high-definition video games to Internet-connected devices.

“With these important acquisitions, we will continue to make appropriate investments related to our multichannel strategy,” Raines said. “GameStop is uniquely positioned to be the leader in both the physical and digital gaming space.”

The Impulse acquisition is expected to close in May, and will give the retailer’s digital customers instant access to a library of more than 1,100 games, and the ability to manage game-related downloads and purchases.

“On day one we will have thousands of titles for streaming,” Raines said, showing off a download on the Xbox 360 console.

The Impulse acquisition also will give DRM and copy protection tools to content publishers.

“Our customers are gaming in many locations and on many devices, and we need to deliver the same great immersive experience that they have come to expect,” GameStop president Tony Bartel said. "Spawn Labs and Impulse provide a customer-friendly and publisher-friendly way for us to accomplish this.”

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