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GameStop closes Spawn Labs because consumers aren’t ready for cloud gaming

Thursday, 27th March 2014 18:39 GMT By Stephany Nunneley

GameStop has closed the streaming tech firm Spawn Labs it acquired in 2011, because consumers haven’t adopted cloud gaming to the point it’s a sustainable business. Speaking with Gamespot, VP of investor relations Matt Hodges said the firm’s cloud business will focus on selling subscription cards for PlayStation Now and the like. “While cloud-based delivery of video games is innovative and potentially revolutionary, the gaming consumer has not yet demonstrated that it is ready to adopt this type of service to the level that a sustainable business can be created around it,” Hodges said. GameStop reported its Q4 and full-year 2013 earnings today. The full report is here.

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