GameStop to close up to 190 stores

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After suffering a rough fourth quarter in 2016, GameStop will be closing at least 100 stores soon, according to a recent financial report. Hardware sales declined by 29.1%, even though the PlayStation 4 Slim, PlayStation 4 Pro, and PlayStation VR all launched within that period. Software sales were down by 19.3% as well. The retailler also blamed "weak" sales of big budget AAA games for the harsh decline, mentioning that the latest Call of Duty title had disappointingly sold 50% less than 2015's Black Ops 3. This announcement comes after Microsoft revealed Xbox Game Pass, a digital subscription that allows players to have access to a wide catalog of games for a monthly fee, which further hurt the brick-and-mortal GameStop, causing stock prices to drop by 7%. This leads to a total stock decline of 31% for the company, in the past year alone.

Total global sales decreased 13.6% to $3.05 billion, while consolidated comparable store sales declined 16.3% (-20.8% in the U.S. and -4.6% internationally). As stated in the company’s holiday sales release in January, the fourth quarter was significantly impacted by weak sales of certain AAA titles and aggressive console promotions by other retailers on Thanksgiving Day and Black Friday. As a result, new hardware sales declined 29.1% and new software sales declined by 19.3%. Pre-owned sales outperformed new video games, declining 6.7% compared to the fourth quarter of 2015.

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jimbo13

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It's not like they didn't know this was coming, they have had a decade+ to diversify and find new outlets/models.

What did they do? Double down on gouging used sales, try to upsell obnoxious subscription shit most people don't want even pitched and buying games just to destroy them trying to up nostaligia/retro-markets.

Good riddance.
 

RevPokemon

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I wonder what they will do in order to stay relevant in the world of digital game purchases? I know my local one has dedicated a good portion of the space to game memorabilia, so perhaps this will be part of a new strategy? Anyway, if RadioShack is still around then maybe Gamestop can make it once physical games go the way of the dodo....
 

RustInPeace

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Blockbuster all over again....

I didn't swing by a closing Blockbuster unfortunately, but I did go to a closing Hollywood Video store, in 2008, oddly enough. That was budget movie spending heaven, but I didn't capitalize, only having $10 or so on me, and buying a $2.50 DVD of The Brothers Solomon. The point I'm making is that if Gamestop goes the way of those stores, I expect liquidation sales to die for.
 

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They could of went in tangible games/books/cards, warhammer stuff etc while keeping the game business and did more event stuff at the stores for one.

They should of just migrated towards tangible stuff like shirts & interesting novelty stuff that appeals to gamers.

High-end specialty peripherals in store, Fight sticks, light guns, wheel sets would of been a nice start (They don't carry anything I can't grab at walmart).
 
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zoogie

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They could of went in tangible games/books/cards, warhammer stuff etc while keeping the game business and did more event stuff at the stores for one.

They should of just migrated towards tangible stuff like shirts & interesting novelty stuff that appeals to gamers.

High-end specialty peripherals in store, Fight sticks, light guns, wheel sets would of been a nice start (They don't carry anything I can't grab at walmart).
They have been diversifying. They bought thinkgeek, for instance.
 

Chary

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I didn't swing by a closing Blockbuster unfortunately, but I did go to a closing Hollywood Video store, in 2008, oddly enough. That was budget movie spending heaven, but I didn't capitalize, only having $10 or so on me, and buying a $2.50 DVD of The Brothers Solomon. The point I'm making is that if Gamestop goes the way of those stores, I expect liquidation sales to die for.
I still cringe when I think that when both blockbuster and Hollywood video closed, I only bought one item apiece. Regret forever.

They have been diversifying. They bought thinkgeek, for instance.
That's not much to show for a decade of diversifying, not to mention Geeknet, the main company, is also on the decline, too.
 
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zoogie

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I still cringe when I think that when both blockbuster and Hollywood video closed, I only bought one item apiece. Regret forever.


That's not much to show for a decade of diversifying, not to mention Geeknet, the main company, is also on the decline, too.
Thinkgeek is just the tip of the iceberg, just an example.

This is from two years ago, they've been trying to pivot away from physical game sales for a good while.
https://www.bloomberg.com/news/arti...acquisition-plans-in-push-to-diversify-stores
 

Sonic Angel Knight

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Look, they been doing very small things to keep people interested but is just bad. I dunno what the main problem was, reselling games or the pro subscriptions to the magazine and discounts. Not to mention costing more for making disc/carts than digital only. Still it be a same i have to go to best buy for new consoles now instead of a game store, and the pre orders, and midnight release. But again, digital content is making headway, even if it is cloud based gaming subscriptions I DON'T USE.

I wanted to bring this up in a thread i was gonna make on my own about the cost of gaming but i guess perhaps is appropriate to share now? Basically is just some information about games, how they cost and the various situations that cause potential risk. Anyway the youtube channel i got the videos from have just been reporting news about gamestop bad reputation getting worst so is not news to me. Some are over 2 years long.




 
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FAST6191

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So I will now have to go 3 blocks rather than 2 to find a shop? Horrifying.

and buying games just to destroy them trying to up nostaligia/retro-markets.
Got any more on that? This would be the first I am hearing of such things and I do try to keep on top of the continuing adventures of gamestop.

I wonder what they will do in order to stay relevant in the world of digital game purchases? ...maybe Gamestop can make it once physical games go the way of the dodo....

You expect physical games to vanish? Only way I see that happening is for resale of keys to be allowed and I doubt I will see a workable version of that any time soon.
 
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jimbo13

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astrangeone

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There are three EBGames/Gamestops within walking distance of my house. Four, if you count the one in the "big" mall/tourist mall in my town. I don't mind them, my local EBGames actually hosts two really cool employees that help out a lot. (I got my refurbished Wii U from them and I mentioned BoTW (as that was my reason to purchase it.), and he mentioned that the physical game is very very hard to find, as well as giving me the Silver Edge card to get me the discount.)

Mostly the EBGames have turned into a Funko Pop, collectibles thing. They even have a huge supply of tee shirts (which I rarely buy because there's a discount warehouse near my aunt's house that has them for $10 only). Most video game stores seem to be dying (went to a local Mum/Pop one for their going out of business sale, and got six games for $40.). Hell, my local HMV finally went under, despite trying to pick up business with a huge amount of collectibles. Seriously, about 75% of the store turned into collectibles and fandom stuff.

And the one in the mall seems not to have good security. No sensor towers, no tagging of items, and close to one of the exits. Seriously, even the Spencers in the same mall has hard wire tags/sensors on their wallets....I dunno how they survive with that level of "security", because people can easily walk off with a $20 plush.
 
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chartube12

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You expect physical games to vanish? Only way I see that happening is for resale of keys to be allowed and I doubt I will see a workable version of that any time soon.

Actually i do. The US passed a bill a year and a half ago. This bill makes it so digital good licences must be able to be resold, tradable and transferable. The UK i believe have also pasted a simular bill. Companies have until March of 2019 ( the end of the 2018 business season)to make it possible. I expect Steam to be the first ones for a reliable system.
 
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