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

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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Stephany Nunneley-Jackson

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Stephany is VG247’s News Editor, with 22 years experience (with 15 of them at VG247). With a brain that lacks adhesive ducks, the ill-tempered, chaotic neutral fembot does her best to bring you the most interesting gaming news. She is also unofficially the site’s Lord of the Rings/Elder Scrolls Editor.

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