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GameStop Gobbling Up Impulse and Spawn Labs

And the brick-and-mortar giant takes its first big steps into becoming a digital retailer.

It’s no secret that GameStop has been looking to get its fingers into the digital distribution cookie jar. The downloadable sector is growing fast enough to threaten the brick-and-mortar retailer’s bottom line. Why go to a store with pushy employees when you can just download what you want from the comfort of your own couch, right? So, it’s really not a huge surprise that GameStop has acquired Spawn Labs and is in the process of purchasing Stardock’s digital distro platform Impulse, two pickups that will surely pave the way for GameStop to start moving into the digital space.

Spawn Labs--the lesser known entity in this deal--is basically a peer-to-peer gaming service similar to OnLive. It specializes in streaming games to users via everyone's favorite omnipresent cloud. Impulse, on the other hand, is one of the few big names in digital distribution that's not "Steam." It may not be as popular as Valve's service, but Impulse has been turning a profit, which has become a point of concern for Stardock’s founder Brad Wardell. "When Impulse became our number one source of revenue," Wardell told Joystiq in an interview, "I realized it was time for us to look at our options there." Earlier he said that it wasn’t his goal to grow Impulse into a dedicated retailer, so he was open to selling the business.  
 

No Caption Provided

GameStop points out that Impulse will provide “three specific components” for studios and publishers. The first is the client itself that will provide games to users. The second component is the “reactor,” which from what I can tell, will operate as a hub for all the secondary functions of the client by providing DRM, achievements, friends lists, cloud-based saves, and account management functions. The third and final component is the “publisher,” which will give publishers the power to “manage all aspects of their game with powerful real-time reporting and management tools.”

In the press release announcing all of this, GameStop neglected to get into the hard details about when or how it will begin to make its digital push with these businesses, but it is noted that Impulse will become integrated with GameStop.com “within the next few months.” The wording in the PR about the Spawn Labs acquisition certainly makes it clear that GameStop will begin pushing streaming on multiple devices as soon as possible: “once the Spawn Labs integration and testing on a new consumer interface is complete,” the boilerplate reads, “users will have immediate access to a wide selection of high-definition video games on demand on any Internet-enabled device.” Guys, I think the future is here!

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BradNicholson

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Edited By BradNicholson

It’s no secret that GameStop has been looking to get its fingers into the digital distribution cookie jar. The downloadable sector is growing fast enough to threaten the brick-and-mortar retailer’s bottom line. Why go to a store with pushy employees when you can just download what you want from the comfort of your own couch, right? So, it’s really not a huge surprise that GameStop has acquired Spawn Labs and is in the process of purchasing Stardock’s digital distro platform Impulse, two pickups that will surely pave the way for GameStop to start moving into the digital space.

Spawn Labs--the lesser known entity in this deal--is basically a peer-to-peer gaming service similar to OnLive. It specializes in streaming games to users via everyone's favorite omnipresent cloud. Impulse, on the other hand, is one of the few big names in digital distribution that's not "Steam." It may not be as popular as Valve's service, but Impulse has been turning a profit, which has become a point of concern for Stardock’s founder Brad Wardell. "When Impulse became our number one source of revenue," Wardell told Joystiq in an interview, "I realized it was time for us to look at our options there." Earlier he said that it wasn’t his goal to grow Impulse into a dedicated retailer, so he was open to selling the business.  
 

No Caption Provided

GameStop points out that Impulse will provide “three specific components” for studios and publishers. The first is the client itself that will provide games to users. The second component is the “reactor,” which from what I can tell, will operate as a hub for all the secondary functions of the client by providing DRM, achievements, friends lists, cloud-based saves, and account management functions. The third and final component is the “publisher,” which will give publishers the power to “manage all aspects of their game with powerful real-time reporting and management tools.”

In the press release announcing all of this, GameStop neglected to get into the hard details about when or how it will begin to make its digital push with these businesses, but it is noted that Impulse will become integrated with GameStop.com “within the next few months.” The wording in the PR about the Spawn Labs acquisition certainly makes it clear that GameStop will begin pushing streaming on multiple devices as soon as possible: “once the Spawn Labs integration and testing on a new consumer interface is complete,” the boilerplate reads, “users will have immediate access to a wide selection of high-definition video games on demand on any Internet-enabled device.” Guys, I think the future is here!
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Oni

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Edited By Oni

Gamestop is evil

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uberexplodey

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Edited By uberexplodey

...neat?

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RE_Player1

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Edited By RE_Player1
@Oni said:
" Gamestop is evil "
Yup. 
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Mintyass

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Edited By Mintyass

First their acquisition of Kongregate, now this

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evildeadron

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Edited By evildeadron

Impulse is a good service, not quite steam, but pretty decent...shame they had to sell out to Gamestop though
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Sankis

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Edited By Sankis

Impulse is easily the worst major DD platform so I can't see this making it any worse.

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Nictel

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Edited By Nictel

I dunno, there has to be something special to get me away from Steam. Impulse has been cheaper on some deals in the past but the money wasn't worth having two clients.

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nvorgang

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Edited By nvorgang

Get ready for more preorder bonus shenanigans.

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jorbear

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Edited By jorbear
@Oni said:
" Gamestop is evil "
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MattyFTM

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Edited By MattyFTM  Moderator

Impulse seems like a good service, and being acquired by a bigger business could lead to it being a very real competitor for Steam, which can only be a good thing. While gamestop aren't the most popular company in the world, the things they're disliked for is very much focused on the retail environment, and aren't things that could easily be brought across into the digital space.

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Olivaw

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Edited By Olivaw
@MattyFTM said:
" Impulse seems like a good service, and being acquired by a bigger business could lead to it being a very real competitor for Steam, which can only be a good thing. While gamestop aren't the most popular company in the world, the things they're disliked for is very much focused on the retail environment, and aren't things that could easily be brought across into the digital space. "
This is... a far more sensible post than I expected to see at the top of a comments page!
 
Well done, friend!
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Oni

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Edited By Oni

Oh, Gamestop will find a way to make your shopping experience miserable, physical or not, believe it.

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nvorgang

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Edited By nvorgang
@Oni: Trade in your used PC Game Today and get credit!
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SafetyFist

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Edited By SafetyFist

Doubt I'll make use of this from gamestop but it's something to keep an eye on I guess.

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TheKing

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Edited By TheKing
@Oni said:
" Gamestop is evil "
You earned that quest.
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crusader8463

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Edited By crusader8463

As all ways, I will give it a fair shake to impress me when it launches before I demand it's slow painful death at the feet of Gabe Newell and the Steam Army.

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Catarrhal

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Edited By Catarrhal
@Oni said:
" Oh, Gamestop will find a way to make your shopping experience miserable, physical or not, believe it. "
Yep!
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nintendoeats

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Edited By nintendoeats

I don't see how this can mean good things for consumers. Even if they manage to build a service better than Steam, that cannot compete with the massive investment that many people have in Valve's product. Then GS will have to rely on things like exclusive content to draw consumers...which is just bad for us.

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Vrikk

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Edited By Vrikk

Yeah, Impulse has always run like shit for me so no skin off my back. I'll stick to Steam.

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warchief

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Edited By warchief

Gamestop is scared of the next console gen....and that makes me happy.  
Here's to hoping they are a distant memory in the coming year.  
 
fuck you Gamestop.

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Crono

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Edited By Crono

I can see it now: Used, digitally distributed games.

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JimmyJackJones

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Edited By JimmyJackJones

I can't wait for the inevitable "I'm sorry, but we only have enough bandwidth available to allow downloads from the customers who preordered this game.  Please check back in a few weeks.  In the meantime, would you like to preorder one or more of these upcoming titles?"

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MattyFTM

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Edited By MattyFTM  Moderator
@nintendoeats said:
" I don't see how this can mean good things for consumers. Even if they manage to build a service better than Steam, that cannot compete with the massive investment that many people have in Valve's product. Then GS will have to rely on things like exclusive content to draw consumers...which is just bad for us. "
I don't think people being invested in one digital distribution platform will stop them from buying things on another one. People will go where the best deals are. I am extremely invested in Steam with hundreds of games on the service, but I also have games on D2D, Gamersgate, the EA store and Games for Windows Marketplace. I check the steam store far more regularly, sure, but if I see a good deal from another store, I'll happily purchase it from there. 
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rbanke

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Edited By rbanke

I love GiantBomb, but I really dont get why (outside of breaking) news is posted here. It's almost always days late. I think the resources would be better used for features that compliment the sites' strengths.

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essi2

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Edited By essi2

Now Impulse doesn't just suck... it's also EVIL!

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Jayross

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Edited By Jayross

GameStop will probably fail as we transition to digital. Steam will continue to dominate on the PCs, and Microsoft and Sony will maintain the monolply of being the only people allowed to distribute content to their systems.

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Rhombus_Of_Terror

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I'm so glad I don't have to have this experience in England. 
 
 
 
 
"Walks past GAME"
 
GAAAAH!

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napalm

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Edited By napalm

It never ends, this shit.

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TadThuggish

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Edited By TadThuggish

I can't believe people still shop there.  It's universally recognized as a horrible consumer experience. 
 
Just go to Best Buy or use Amazon.  There are zero uses for GameStop nowadays.

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iam3green

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Edited By iam3green

dang that sucks for people like me with steam. i do hope that gamestop doesn't make steam go away. i don't think i would like them to use digital download. they are going to need some exclusives to get people into it because all of the games that come out are for steam. i can see them putting ads in the games, in the menus, at the end of the game closing. steam does that also but they put what is on sale at the time.

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Forum_User

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Edited By Forum_User

GameStop is acquiring Impulse? 
 
I'm not feeling too well.  Pull over the car.  
 
Anyone but GameStop, please, for the love of God.   
 
(Well, not Microsoft, EA or Acti-lizard either...)

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sternone

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Edited By sternone

When does Amazon buy Steam?

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ArbitraryWater

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Edited By ArbitraryWater

It's great, because I dislike having to go to a Gamestop almost as much as I dislike having to use Impulse. It's a pity that Stardock happens to make two games that I like, which is why its still installed on my computer. Is Elemental: War of Magic a working product now? Because I could see myself picking that up at some point.

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nasher27

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Edited By nasher27

That picture is definitely of my local Gamestop at Northpark Mall in Dallas, TX.

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TheChaos

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Edited By TheChaos
@Oni said:
" Gamestop is evil "
Gamestop is among the first few things I will destroy after gaining super powers.
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LegalBagel

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Edited By LegalBagel

So will they try to get me to download a strategy guide when I buy my game digitally too? 
 
Though ironically, GameStop's more annoying pushy practices are fairly commonplace, even welcome, in online retailers that make suggestions for you and such.  I imagine GameStop will find a way to make it excruciating though.

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rabidwombat

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Edited By rabidwombat

I own a few Impulse games (indie-ish projects that are quite good), which made me sad that they were bought by GameStop.  But I do agree with the previous posters who think that a Steam competitor will drive both products to do better.

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Protonguy

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Edited By Protonguy

They'll probably ask you to pay for added insurance in case your download fails. 
 
i goddam hate Gamestop

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G0rd0nFr33m4n

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Edited By G0rd0nFr33m4n

I have not heard of either of these company, I hope gamestop dies, and they will once everything is downloadable b/c no one will by from them if they can avoid it, amen. 

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Donos

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Edited By Donos

I wonder how Amazon will respond, if they're to continue kicking gamestop's ass.

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jack_daniels

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Edited By jack_daniels
@Oni said:
" Gamestop is evil "
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Hef

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Edited By Hef

Honestly, unless 1TB hard drives come standard on consoles, I really don't see this being an option.  I mean I have an absolute shit ton of steam games on my PC.  But my PC is easily changed around and upgraded.  This isn't even really a huge deal for PS3 owners.  But right now downloading all your games onto your 360 would eat up that little 250gb HDD in no time.  Unless this becomes as awesome, if not better than steam, I will probably never use it.

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HydraHam

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Edited By HydraHam

I don't understand the pure hatred people have towards gamestop, like it came to your house while you were sleeping and raped your parents.
 
Is their whole trade-in practice shitty? sure, but if morons want to get lowballed instead of going to ebay/craigslist that's their problem, i enjoy browsing the used selection because from time to time you do get good deals, buy 2g1 used deals, new etc. I know other stores do it but im not gonna rob myself of deals. I just don't understand why everyone hates them yet gives their money to bestbuy, money, target, toys-r-us etc. You can't use the evil corporation excuse for hate then go to walmart and buy a fucking dvd it's stupid.

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Gregomasta

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Edited By Gregomasta

Yeah, haven't bought a disk based game in 3 years.  Valve sold me on this idea way back homies. 

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artofwar420

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Edited By artofwar420

Feel kinda bad and good for Impulse. I wonder what this will mean for them in the long run. Will they just become Gamestop's digital delivery system (DRM included)?

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copycatzen

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Edited By copycatzen

I have never read a good comment about how digital downloads or/and streaming games will be affected by internet download caps. 
 
I think that is the only reason why I would never get into streaming... but digital downloads may not be an issue.
 
Does anyone has anything to say?
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FightMeNerd

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Edited By FightMeNerd
@Warchief:  Well I guess I can get a job somewhere else. Maybe lose some weight when I don't have money :D It worked when I was a kid.
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Hardgamer

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Edited By Hardgamer

I hate Gamestop. They charge me $57.99 for a used game. Next thing I know is that I ended up out of the store by Security.

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Kyreo

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Edited By Kyreo
@nintendoeats said:
" I don't see how this can mean good things for consumers. Even if they manage to build a service better than Steam, that cannot compete with the massive investment that many people have in Valve's product. Then GS will have to rely on things like exclusive content to draw consumers...which is just bad for us. "
Exclusive content has been their Modus Operandi this whole time.  Anything less than vile docuhebaggery and cut throat corporate reactions from GameStop would surprise me.