GameStop Wayne, NJ
"GAME OVER" FOR GAMESTOP?
It's Not about games anymore.
by Felipe Parada
I remember the early days before GameStop, before game trade-ins and the creation of the god awful pre-order culture. I used to get my games at Toys "R" Us, when the games were kept behind a glass counter and you needed to ring a bell for assistance. Like in all aspects of life, the gaming culture has evolved. It went from Funcoland, to EB Games and now GameStop and the gaming culture continues to evolve. The real issue is if GameStop has really kept up with the times? Many analysts feel that gameStop is in major trouble and from the looks of it, they are. Some have even gone as far as re-naming the company Game-overStop.
With the new introduction of game services like Gamefly, EA Access and STEAM; GameStop continues to get beat at every single turn. Could this possible be game over for GameStop? Decreasing sales of used games have have a large part to do with it, with more and more gamers looking towards STEAM to get their games for cheap. It also doesn't help that GameStop's stock continue to drop. The gaming giant rely's heavily on used game sales over new game sales because they can buy back games for real low and still sell them for high prices. Consumers are starting to get wise to their business practices and the company is starting to get worried.
According to GameStop's financials over a 1 year period, it is not looking good for the gaming giant. It is only a matter of time?
GameStop has really pushed their employees to sell as many used games as possible. They have doubled down on their buy two get one free deals with the hope of injecting capital back into the used game market. At first it seemed like a desperate plea but for the meantime the strategy is working. But GameStop continues to look for new avenues of revenue in a constantly evolving market.
On a recent trip to the game retail giant I noticed that it looked more and more like HotTopics than a game store. Shirts and collectibles greet you as soon as you enter the store. At first I thought that GameStop was bought out but upon further research GameStop acquired GeekNet which is the parent company of ThinkGeek for $140 million. Originally Hot Topic made an initial offer of $122 million before GameStop came in and swept the rug from underneath them.
GameStop's look more like HotTopics than a gaming store.
GameStop Wayne, NJ
At this point, who knows what will happen to GameStop. Many say that this deal is just a small band-aid on a much bigger wound. From the look of their stock it looks like GameStop is hemorrhaging money and they are frantically looking for a solution. I could be wrong but the proof is in the numbers. If they are to survive they really need to make a push and re-establish a hold on the gaming market like they once did. If they cant then it could really mean game over for GameStop.
What do you think? It is only a matter of time before the inevitable happens? Leave us your thoughts below.
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