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EB Games Australia

From Alfawiki
Electronics Boutique Australia Pty Ltd
Company typeSubsidiary
IndustryRetail (video games, consumer electronics, gaming merchandise)
Founded1997
Headquarters
Eagle Farm, Queensland (Brisbane)
,
Australia
Area served
Australia, New Zealand
ProductsVideo games, consoles, accessories, pop culture merchandise
Number of employees
200+
ParentGameStop

Electronics Boutique Australia Pty Ltd, operating under the name EB Games Australia, is a retail company in Australia focused on video games, consumer electronics, and gaming-related products. The retailer offers a wide range of video games, consoles, and accessories compatible with Nintendo, PC, PlayStation, and Xbox systems, as well as merchandise connected to gaming culture and popular media.

EB Games runs 375 outlets across Australia and 41 locations in New Zealand, trading under the EB Games and Zing Pop Culture banners. The company’s headquarters are situated in Eagle Farm, Queensland (Brisbane), and it functions as a subsidiary of GameStop.

Founding period

The first Electronics Boutique store was established in 1977 in King of Prussia, Pennsylvania, initially retailing digital watches, calculators, and compact radios. The Australian branch commenced operations in 1997 with its debut store at Westfield Miranda. Expansion into the New Zealand market began in 2000 with a store opening in Auckland.

Brand consolidation

In 2002, Electronics Boutique Holdings Corp undertook a worldwide rebranding initiative that merged all Electronics Boutique, EB GameWorld, and EB Kids outlets into the single EB Games brand. This strategic move was designed to unify marketing efforts and position EB Games as a premier provider of interactive entertainment globally.

Acquisition by GameStop

GameStop acquired Electronics Boutique Holdings Corp in 2005 for USD 1.44 billion, significantly broadening its presence across Australia, Canada, Europe, and New Zealand. This acquisition boosted GameStop’s total store count to more than 4,250 worldwide.

Integration of Gamesman

In 2008, GameStop purchased The Gamesman, which was then New Zealand’s largest independent gaming retailer. This acquisition added eight stores to the network and increased EB Games’ footprint in New Zealand to 38 stores, bringing the combined total across Australia and New Zealand to 308 outlets.

Introduction of EB Games Expo

EB Games inaugurated the EB Games Expo (also known as EB Expo or EBX) in May 2011 as an annual trade event for video games held within Australia. The first expo occurred at the Gold Coast Convention and Exhibition Centre from October 15 to 16, 2011. Designed as a venue for developers to unveil upcoming games and hardware, it distinguished itself from events like E3 by welcoming public attendees.

Between 2012 and 2016, the EB Expo took place at the Sydney Showgrounds before returning to the Gold Coast Convention and Exhibition Centre in 2017. For the 2018 and 2019 editions, EB Games moved the event to the Melbourne Convention and Exhibition Centre to coincide with PAX Australia, maximizing opportunities within the gaming industry.

Launch of EB World

In October 2011, EB Games introduced EB World, a loyalty program structured around four tiers where customers earned points called "carrots" through their purchases. Rewards included features such as receipt-free shopping and extended preorder holds among other benefits tied to ongoing patronage. Following the establishment of Zing Pop Culture Australia in 2014, points accumulation was also enabled at Zing locations. By 2017, membership exceeded five million participants and included a fifth exclusive tier reserved for the top 9,999 point earners each year by invitation only. Membership numbers surpassed six million by December 2019.

To celebrate significant milestones and campaigns, EB Games has issued limited edition EB World membership cards. Prominent releases include commemorations for the first year of EB World, EB Expo events in 2012 and 2013, the opening of the Sydney CBD store, launches of PlayStation 4 and Xbox One consoles, Star Wars Day celebrations, Red Dead Redemption 2 promotions, World of Warcraft tie-ins, and holiday-themed editions.

ZiNG Pop Culture

In July 2014, EB Games Australia introduced ZiNG Pop Culture (stylized as ZiNG Pop Culture), a retail brand focused on pop culture collectibles, figures, and related merchandise. The inaugural outlet was established at Indooroopilly Shopping Centre in Queensland. Operating as a subsidiary of EB Games Australia, ZiNG employs more than 200 individuals and aims to capture the expanding demand for licensed entertainment products.

Workplace harassment allegations

In May 2015, allegations emerged from four former EB Games staff members accusing a district manager of bullying, sexual harassment, discrimination, racial animosity, intimidation, and unpaid labor at the Figtree and Dapto locations. These grievances were submitted to the New South Wales WorkCover Authority and the Australian Human Rights Commission.

Store closures

In January 2020, EB Games declared it would shut down 19 underperforming stores by the end of that month. Electronics Boutique Australia Pty Limited attributed this decision to ongoing portfolio assessments aimed at adapting to the changing retail environment. Where feasible, employees impacted by these closures were offered positions at nearby outlets.

Diversification efforts

Despite these shutdowns, Electronics Boutique Australia intended to grow its presence through large-format hybrid stores merging EB Games and ZiNG Pop Culture brands, featuring a broader selection of gaming merchandise. Since ZiNG Pop Culture’s inception in 2014, the company has capitalized on higher-margin items like apparel, figurines, and bobbleheads to maintain profitability. Industry analyses emphasize this merchandise strategy alongside pre-owned game sales as vital contributors to Electronics Boutique Australia’s resilience amid a challenging retail climate.

Significantly, Electronics Boutique Australia Pty Limited stood as the sole profitable division within the global GameStop group during fiscal years 2020, 2021, and 2022, posting profits of US$9.4 million, US$52.2 million, and US$30.6 million respectively. Other GameStop segments reported losses during that timeframe. The overall GameStop entity returned to profitability in fiscal year 2023.

COVID-19 pandemic

During the first half of 2020 and throughout the COVID-19 pandemic, Electronics Boutique Australia Pty Limited was unique among GameStop divisions in avoiding major losses, achieving a 30% sales increase. The company proceeded with store expansions even as other retailers in Australia and New Zealand closed locations. For Fiscal Year 2020, net sales reached US$625.3 million with operating earnings of US$52.2 million, up from US$525.4 million in sales and US$9.4 million in earnings during Fiscal Year 2019.

ZiNG Marketplace

In September 2021, EB Games launched Zing Marketplace, an Australian e-commerce platform designed for consumer-to-consumer trading of retro games and pop culture items. This marketplace service was discontinued on 22 March 2022.

Operations

As of 29 January 2022, the company manages 375 stores across Australia along with 41 locations in New Zealand.

Atrix

Atrix (previously known as @play) represents Electronics Boutique Australia Pty Limited’s proprietary brand offering gaming peripherals such as headsets, mice, and keyboards.

Brand Licensing

Starting in 2017, Electronics Boutique Australia Pty Limited initiated the internal design and production of apparel and merchandise under various brand licenses. The product range features items such as backpacks, beanies, hoodies, T-shirts, pins, socks, and wallets. The company maintains licensing agreements with prominent brands including DC Comics, Disney, Harry Potter, The Lord of The Rings, Marvel, Minecraft, Nintendo, PlayStation, Pixar, Pokémon, Rick and Morty, Scooby Doo, Universal, and Xbox. These licensed goods are retailed through EB Games and Zing Pop Culture outlets as well as their online platforms.

Buck Bunny Mascot

EB Games Australia’s mascot is Buck the Bunny, an anthropomorphic rabbit character. Buck is a central figure in the company’s marketing efforts, with his distinctive ears incorporated into the EB World loyalty program’s emblem. Within EB World, loyalty points are called 'carrots', a nod to Buck’s rabbit identity.

Pre-order Incentives

To encourage pre-orders, game publishers provide exclusive bonuses that are only accessible through advance purchase. These incentives often include unique in-game characters, weapons, maps, or collectible items. For instance, EB Games presented an exclusive avatar costume for Call of Duty: Black Ops upon its November 2010 launch and offered an Art-Folio featuring artwork for Metroid: Other M. Other typical pre-order rewards encompass soundtracks, artbooks, plush toys, figurines, posters, and apparel.

Pre-owned Merchandise

EB Games offers customers either cash payments (where legal) or store credit in exchange for accessories, consoles, and video games. Sales of pre-owned products yield approximately twice the gross margin compared to new game sales. Some game developers have criticized GameStop—the parent company of EB Games—for not sharing revenue generated from used game transactions. In response to such concerns, GameStop reported in 2009 that 70% of trade-in store credit was spent on new titles, resulting in nearly $2 billion in annual revenue.

Reboot Repairs

EB Games provides repair services for gaming consoles at a fixed cost. Customers are not charged if their device cannot be successfully repaired.

Starlight Children's Foundation

Since 2007, EB Games Australia has maintained a partnership with the Starlight Children's Foundation. Each year, EB Games and Zing Pop Culture stores organize fundraising events known as "Starlight Week." In 2021 alone, these efforts raised more than $850,000 to support the Foundation.

Financial Performance

EB Games Australia Financial Figures 2005-2021
Financial Metric 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net Sales (USD Millions) $94.4 $288.1 $420.8 $520.0 $530.2 $565.2 $604.7 $607.3 $613.7 $644.7 $591.4 $609.5 $702.2 $645.4 $525.4 $625.3 $591.8
Operating Income (USD Millions) $11.0 $27.3 $41.8 $46.8 $46.0 $41.0 $35.4 -$71.6 $37.5 $38.0 $38.7 $34.9 $34.9 -$46.5 $9.4 $52.2 $30.6

Store Numbers

Electronics Boutique Australia Pty Limited Number of Stores 1998 1999 2000 2001 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Australia 15 29 43 56 152Template:Ref label 191 250 311 350 365 372 379 379 381Template:Ref label 403 423 425 419 383 375 376
New Zealand - - - 9 25Template:Ref label 28 30 39Template:Ref label 38 40 39 37 39 40 41 41 42 43 43 42 41
Total Australia Division 15 29 43 65 177 219 280 350 388 405 411 416 418 421 444 464 467 462 426 417

Purchased by GameStop Corp., a U.S. video game retailer with an estimated 1,800 outlets.

Expanded regional footprint through acquisition of The Gamesman Limited in New Zealand.

Introduced the Zing Pop Culture brand, focusing on merchandise related to popular culture.

External links