is Gamestop really in trouble, and how can it recover?

Eoin · Jun 24, 2019

I think it's a matter of time before a massive restructuring is necessary (and the longer they hold it off, the more dramatic the restructuring that will be necessary). Large chain stores scale up quickly but even when things are going well, a high percentage of the stores are going to be loss-making, breaking even or making only relatively small profits. The industry shift that we've seen over the past few years (and which has shown no signs of slowing down) means that at some point probably most GameStop stores will be struggling, and at that point (which might be in the past) GameStop will no longer be a sustainable medium-term business.

I think the time to fix this was over 10 years ago. That's when they could have pushed heavily into online distribution, that's when they could have laid the groundwork to properly specialise, that's when they could have pushed most heavily in favour of physical distribution.

I suspect that the eventual action that will be forced upon them will result in them closing most of their stores, and that their presence across most of the US will be reduced to basically this:

TitanicFall said:
They could provide a local game renting service. They have a huge catalog to pull from.

My understanding - which might be wrong or outdated - is that a retailer can't just rent out games that they've bought for general sale - that rental copies carry a higher cost. I could very well be wrong, but it would explain why GameStop haven't tried to move into rentals.

(Even if they could easily move into rentals, though, that seems like a stopgap at most - the physical rental market doesn't look like it has any future.)

NinjaScooter said:
They have to do this because the margins on new games probably aren't good enough to sustain their business unless at least a few people are also buying all the other shit like magazine subs, game insurance, preorders, funko pops, memberships ect... they can't afford to just sell you the game with no frills like Target or Best Buy can.

This is all true, but if the practices that they are forcing upon their employees are shitting up their in-store experience (and they are, and they have been for well over a decade now), then they need to rethink something.

Dark1x · Jun 24, 2019

PancakeFlip said:
This actually might be true for most people despite what people here constantly claim, though anecdotal I was in line at a gamestop and overheard a textbook casual saying that the PS4 would be his last console if things kept trending towards digital and GAS, most people around him didn't sound enthused at the mention of it either. If the casual finds out they don't have a choice, I'd be willing to be most would jump ship.

That's good to hear. Hopefully people DO push back. I know I'll continue to do so. I'm not going to accept an all digital future.

reKon · Jun 24, 2019

I was against the company ever since I was a young teen and I saved up buy a "new" game that the employee had already opened. This happened on multipe occasions. They also managed to place like 10 stickers on these "new" game packages that were a bitch to remove. I reached the point pretty early in my life where I just refused to buy games from there from them doing these practices.

Around 2-3 years ago I also truly learned how bad they are running a business through trade in exploits that people were taking advantage of. The scheme essentially went like:

1) Trade in 5-6 games old games with decent trade in value. The promotion was that you would receive 60% to 70% additional credit for the trade in.
2) Take the credit earned and purchase 6-9 USED Nintendo first party games (since they are generally worth the most credit). I believe there was a buy 2 get 1 free promotion running on used games.
3) Take those Nintendo games to another GameStop, earn the 60% to 70% credit on the trade in.
4) Repeat steps 2 and 3
5) BONUS - use all the credit generated to buy used iPhone's from GameStop and sell on Swappa.com for additional profit.

I remember people on slickdeals generating $1000+ of trade credit doing this in a manner of a couple of hours.

Mbolibombo · Jun 24, 2019

jaggies said:
Honestly, I kind of doubt it. The smaller indie stores they killed? Those are missed. The chains that became GameStop, like Babbages and Software Etc? Those are missed.

But this current shambling homunculus of a company? No.

Everything people once liked about GameStop is gone, except for Game Informer, which would presumably be spun off and survive.

That can be said about every big chain. Amazon, Best Buy etc has a much grander kill-list than Gamestop ever had.

We had multiple stores selling games in my country before, now there's only a few big electronic chains and Gamestop.. and it's not looking fantastic for them. Going in to a store, browse through games, talk to the staff about games and so on is not something you can do at the big chains. I'm going to miss that if Gamestop dissapears.

xinoart · Jun 24, 2019

reKon said:
I was against the company ever since I was a young teen and I saved up buy a "new" game that the employee had already opened. This happened on multipe occasions. They also managed to place like 10 stickers on these "new" game packages that were a bitch to remove. I reached the point pretty early in my life where I just refused to buy games from there from them doing these practices.

Around 2-3 years ago I also truly learned how bad they are running a business through trade in exploits that people were taking advantage of. The scheme essentially went like:

1) Trade in 5-6 games old games with decent trade in value. The promotion was that you would receive 60% to 70% additional credit for the trade in.
2) Take the credit earned and purchase 6-9 USED Nintendo first party games (since they are generally worth the most credit). I believe there was a buy 2 get 1 free promotion running on used games.
3) Take those Nintendo games to another GameStop, earn the 60% to 70% credit on the trade in.
4) Repeat steps 2 and 3
5) BONUS - use all the credit generated to buy used iPhone's from GameStop and sell on Swappa.com for additional profit.

I remember people on slickdeals generating $1000+ of trade credit doing this in a manner of a couple of hours.

I did that with part of my old video game collection. What's the problem? It got me an entire year of brand new video games. Also, do you think Amazon will stop selling more than one console to a person because of scalpers? Didn't happen with the Switch.

Don't make mountains out of molehills.

Deleted member 2618 · Jun 24, 2019

Ramjag said:
I never understood the fuss personally. They ask about warranties and shit at places like bestbuy too. Worst come to worst, they ask me and I say no and go about my day.

It's way more aggressive at Gamestop though. Not only do they ask 3 times more things like preorders and memberships, even if I say no, often times its followed by "Are you sure tho, you can get a replacement if anything happens" or "You save 15% on used games"

Why is it that just going to buy video games is a whole process and a pain going through stores trying to get more money out of customers? This isnt the case with buying movies or books. Its absurd.

reKon · Jun 24, 2019

xinoart said:
I did that with part of my old video game collection. What's the problem? It got me an entire year of brand new video games. Also, do you think Amazon will stop selling more than one console to a person because of scalpers? Didn't happen with the Switch.

Don't make mountains out of molehills.

My point was that they don't know how to properly run their business. None of their competitors would ever let something this stupid exist from a strategic business perspective.

DXLelouch24 · Jun 24, 2019

Man based on alot of people's experiences here I feel like my Gamestop is in another dimension or something as they never have done the things you guys have experienced before each time I went.
I just go to pickup my preorder and go home, occasionally getting a PSN or Steam card as well.

t26 · Jun 24, 2019

xinoart said:
Apparently, just by reading this thread, so many people are so deluded about thier opinion. Gamestop isn't going under because of their toys/merch areas getting bigger. If anything, those are keeping them afloat. They own Funko. Funko is literally everywhere. Go to any convention, Walmart, Target, etc. Funkos are sold there, and they usually have collectors editions at different stores. Funko will be around for awhile. Gamestop is in a slow change (glacial apparently). Do you honestly think they don't have ties to other ventures as well? Funko is just the one that is easily recognizable.

If Gamestop closes any stores, it will most likely be in major cities. Small towns across America rely on Gamestop.Without them, many games people in here crave will die forever. Le3ss customers to see your cover/poster in a store = sell less copies. Whether people want to admit it or not, not everyone buys video games because some forum said so or some 'net pub stomper said so.

It is going to be the opposite. Major cities can rely on foot traffic to buy merchandise or walk in. Small towns will just have Walmart or online.

GodofWine · Jun 24, 2019

They need to embrace PC gaming, in the form of being a source for Gaming PC's, components, etc...PC gaming is on the rise (despite various 'analyst' saying it isnt). The rise of YT and Twitch viewership is only further popularizing PCs to youth who 10 years ago begged for an Xbox...many now beg for a PC to be like their gaming idols.

But most people have NO place to go to look at them, buy them, upgrade them etc.

*AND don't make it a rip off fest of RGB bullshit and $1000 PCs with Rx550s and $90 CPUs. (which is what they'd do, and F it all up , and fail..so yea, they are dead)

Robdraggoo · Jun 24, 2019

I still love gamestop. With the exception of new switch games. I'll buy all my stuff there. I trade frequently too. Im a very indecisive person so I do try out the 7 day trial alot. Being able to return a crappy purchase and get something different is the main reason to shop there. Can't do that digitally or at a box store.

Also nice just to have some real life poeole to talk to about video games. I have no friends who game and my wife sure as won't lol

valinthyne · Jun 24, 2019

inner-G said:
Switch to focusing on retro games

This. Have a large ever evolving retro and current game selection. No accessories though. That shit just sits around unsold. Maybe consoles for order from the warehouse.

On top of that they should also start doing phone repairs. Train the management to be able to diagnose phone issues, flat rate to have them sent in to the factory that already refurbishes devices, and contact the customer with a quote once it gets there.

Chaotic-Strike · Jun 24, 2019

They're going the way of Blockbuster. Considering how many better and smaller stores they absorbed in my area I say good riddance.

I almost never go to them anymore and usually support my local retro gaming stores nowadays.

8byte · Jun 24, 2019

I mean, they have literally no one to blame but themselves for their used game policy. They thought they had the market cornered, started exploiting customers (low trade + high sell) and publishers didn't like it. Now we're moving ever closer to all digital / streaming, and they have zero back up plan. Their rush for a cash grab killed their market.

Good riddance. The only thing I care about at Gamestop are the employee's who will eventually have to find other jobs.

xinoart · Jun 24, 2019

reKon said:
My point was that they don't know how to properly run their business. None of their competitors would ever let something this stupid exist from a strategic business perspective.

As someone who used to purchase for a mom & pop store, margins of profit for video games is less than 1% most of the time, same with gas stations. Gas stations usually make less than 10 ce3nts of profit on each gallon. They make money the second you walk inside since most people buy one item if they go in. Those items have markups over 100% on the vast majority of them.

If this policy is as stupid as you claim, then they would've stopped it almost a decade ago. When you come in, they make their money. Same with any brick & mortar store. Game sales may not be the driving force of Gamestop it once was, but they make more money on everything but new games. All of the other products they sell (and most of those companies they own or have a huge percentage of the stocks) are what have been making them money for decades.

t26 said:
It is going to be the opposite. Major cities can rely on foot traffic to buy merchandise or walk in. Small towns will just have Walmart or online.

As someone who literally lives in a small ass town and has for almost 40 years, I can tell you that your hypothesis is wrong. There is very little high speed 'net in that vast majority of the country (US). That decides how fast an all-digital future will go. Not because a bunch of angry people on forums says it's the opposite. Gamestop and small towns rely on each other. That will not change in the next 10 years. Until firber or wifi hubs are commonplace on nearly every lightpole/energy line, then physical goods will still have a strong market. Album stores still exist. Movie sections at most stores haven't been erased because you can buy digital. There are very few facts to back up what peopple think the market will do. This is a forum bubble that people talk about all the time on here.

Dr.Ifto · Jun 24, 2019

One thing I have noticed with Gamestop is that they are everywhere around me. Within 10 miles there are 5. If I go 10 miles south, there are 10 within 10 miles. There is literally 1 a mile from another. I think if they consolidated a bit, it would be better for them. They have too many stores.

Megawarrior · Jun 24, 2019

The final nail in the coffin for me was when they forced the mom & pop store across the street that still sold games all the way back to atari and repaired old consoles to shut down and move. Also the last time I went they snuck a warranty on to the game when without even asking.

Bakercat · Jun 24, 2019

If it dies, it dies....

Aiervon · Jun 24, 2019

xinoart said:
As someone who used to purchase for a mom & pop store, margins of profit for video games is less than 1% most of the time, same with gas stations. Gas stations usually make less than 10 ce3nts of profit on each gallon. They make money the second you walk inside since most people buy one item if they go in. Those items have markups over 100% on the vast majority of them.

If this policy is as stupid as you claim, then they would've stopped it almost a decade ago. When you come in, they make their money. Same with any brick & mortar store. Game sales may not be the driving force of Gamestop it once was, but they make more money on everything but new games. All of the other products they sell (and most of those companies they own or have a huge percentage of the stocks) are what have been making them money for decades.

The poster you're replying to is 100% correct. GameStop ran a double-promotion during a weekend event in 2017 (June/July) that was a pre-owned promotion that could be stacked with a trade promotion. The company never realized that people would obviously take advantage of this, resulting in a lot of issues for them (GameStop).

They've never done it again. It was a disaster for them as a company, but amazing for consumers.

TheRuralJuror · Jun 24, 2019

Menitta said:
It's way more aggressive at Gamestop though. Not only do they ask 3 times more things like preorders and memberships, even if I say no, often times its followed by "Are you sure tho, you can get a replacement if anything happens" or "You save 15% on used games"

Why is it that just going to buy video games is a whole process and a pain going through stores trying to get more money out of customers? This isnt the case with buying movies or books. Its absurd.

Must be lucky in my area. I've never been asked more than once. Last time I felt hassled was ages ago. Never really gave a shit though, I go knowing what I'm buying or what trade-in promotion I'm taking advantage of and I've never really expected more from them than that. Just happy to not deal with knuckleheads wasting my time from Craigslist or offerup.

Rygar 8Bit · Jun 24, 2019

Megawarrior said:
The final nail in the coffin for me was when they forced the mom & pop store across the street that still sold games all the way back to atari and repaired old consoles to shut down and move. Also the last time I went they snuck a warranty on to the game when without even asking.

Was it an open new game? I used to do that with those. If it was a last of a new game and was opened I would list it as open & shop worn, then put the warranty on it and the price would be the same as a new game. We had quotas of warranties you had to sell when I worked there back in 04. So I'd get my quota and the customer would get a free warranty.

scottbeowulf · Jun 24, 2019

Just think of them as a strictly CD music / movie store. How many of those are still around? How quickly did they all fall?

reKon · Jun 24, 2019

xinoart said:
As someone who used to purchase for a mom & pop store, margins of profit for video games is less than 1% most of the time, same with gas stations. Gas stations usually make less than 10 ce3nts of profit on each gallon. They make money the second you walk inside since most people buy one item if they go in. Those items have markups over 100% on the vast majority of them.

If this policy is as stupid as you claim, then they would've stopped it almost a decade ago. When you come in, they make their money. Same with any brick & mortar store. Game sales may not be the driving force of Gamestop it once was, but they make more money on everything but new games. All of the other products they sell (and most of those companies they own or have a huge percentage of the stocks) are what have been making them money for decades.

Read my post again. My criticism of their business was concentrated on the fact that they allowed an exploit of their own trade-in system to happen (many in this case thought it was good karma for all the other times GS have ripped people off, but that's besides the point). The were running multiple promotions that they normally didn't run at the same time. I think that people had been exploiting these situations for years(see Cheapassgamer.com), but this last time was bigger because more people caught on. Since then, I don't think GS has allowed this to happen.

It was the combination of the following that was mindbogglingly stupid from a business standpoint:

1) Buy 2 get 1 free on preowned games
2) 60-70% trade in credit boost when you trade in at least 6 games
3) Having the ability to immediately trade games you bought from one game stop to trade to another gamestop

It's #3 that was the main stinger and I don't understand how they let that one slip. This means that people were effectively creating trade in credit out of nothing. The only sacrifice from their end was the initially games trades in and the cost of gas to drive between GameStops (or take public transit if you're in a big city).

From what I recall from the slickdeals thread, there were some GameStop managers that were realizing what was happening and actually trying to block people from doing this after seeing the activity on their account from earlier in the day. GameStop Corporate did not have a plan for this because they didn't even account for people being able to do this. That to me shows lack of foresight in running your business operations.

xinoart · Jun 24, 2019

Aiervon said:
The poster you're replying to is 100% correct. GameStop ran a double-promotion during a weekend event in 2017 (June/July) that was a pre-owned promotion that could be stacked with a trade promotion. The company never realized that people would obviously take advantage of this, resulting in a lot of issues for them (GameStop).

They've never done it again. It was a disaster for them as a company, but amazing for consumers.

Uh you're wrong and so is the poster. They did it for years. They may not do it now, but BB and Amazon have cut their promotions too. Are they going under? No, not because of trade-ins. Sorry but that just doesn't compute with real world examples.

I never once said they didn't do big promotions. I even said I took part in them.

reKon said:
Read my post again. My criticism of their business was concentrated on the fact that they allowed an exploit of their own trade-in system to happen (many in this case thought it was good karma for all the other times GS have ripped people off, but that's besides the point). The were running multiple promotions that they normally didn't run at the same time. I think that people had been exploiting these situations for years(see Cheapassgamer.com), but this last time was bigger because more people caught on. Since then, I don't think GS has allowed this to happen.

It was the combination of the following that was mindbogglingly stupid from a business standpoint:

1) Buy 2 get 1 free on preowned games
2) 60-70% trade in credit boost when you trade in at least 6 games
3) Having the ability to immediately trade games you bought from one game stop to trade to another gamestop

It's #3 that was the main stinger and I don't understand how they let that one slip. This means that people were effectively creating trade in credit out of nothing. The only sacrifice from their end was the initially games trades in and the cost of gas to drive between GameStops (or take public transit if you're in a big city).

From what I recall from the slickdeals thread, there were some GameStop managers that were realizing what was happening and actually trying to block people from doing this after seeing the activity on their account from earlier in the day. GameStop Corporate did not have a plan for this because they didn't even account for people being able to do this. That to me shows lack of foresight in running your business operations.

You keep taking this one example and say it's the reason they're going under. It's not. Unless you have receipts to prove it's their downfall, it's all baseless forum conjecture. Prove that this is the reason why they are losing some foot traffic.

Aiervon · Jun 24, 2019

xinoart said:
Uh you're wrong and so is the poster. They did it for years. They may not do it now, but BB and Amazon have cut their promotions too. Are they going under? No, not because of trade-ins. Sorry but that just doesn't compute with real world examples.

I never once said they didn't do big promotions. I even said I took part in them.

No, they did not. They had never simultaneously ran a B2G1F promotion on pre-owned games alongside a trade-credit promotion of 60% in the history of the company before that point.

xinoart · Jun 24, 2019

Aiervon said:
No, they did not. They have never simultaneously ran a B2G1F promotion on pre-owned games alongside a trade-credit promotion of 60% in the history of the company.

Weird. I haven't traded anything to them in about 7 years. I wonder how I traded those games in and got that same promotion years before they did it again. I must be confusing it with that time I went back to the 50s to set up my parents. See my mom got confused and was attracted...yanno...that's a different story. Maybe I'll turn it into a movie. Or a trilogy.

carlsojo · Jun 24, 2019

Mikey Jr. said:
Heh, my experience too.

I go to the counter.

1. Do you have an edge card?
2. Do you want to sign up? You get x y and z.
3. Would you like disc protection?
4. Are you sure? In case your game doesn't work you can exchange it.

I just go to Walmart, pay, and peace out. Only reason I'll go to ebgames is if I am in the same plaza and want to get something.

God this so much. It's the same reason I hated going to Blockbuster towards the end. I wanna go in, shop, buy, leave. I don't want to be upsold on shit I don't want.

Atisha · Jun 24, 2019

Change out the head honcho. What it has become is a direct outflowing of the top down.
The last dozen times i've braved the doorway, i usually come out feeling excoriated.
Tremendous way to do buisness.

Deleted member 4247 · Jun 24, 2019

It is, and it won't. Physical video game stores are going the way of the movie rental places.

ShaDowDaNca · Jun 24, 2019

Alucardx23 said:
I see no way how a physical store selling physical games like GameStop will not go anywhere but down as the years pass by. Digital, streaming and online stores like Amazon are all slowly but surely killing any chance Gamestop has to surve

Selling physical media is not why they are having issues LOL

xinoart · Jun 24, 2019

Atisha said:
Change out the head honcho. What it has become is a direct outflowing of the top down.
The last dozen times i've braved the doorway, i usually come out feeling excoriated.
Tremendous way to do buisness.

I think their main reason is too many in mgmt. (not the band) who are taking up space. Cut exec./mgmt. jobs that are superfluous and shut down all the stores in 2 blocks of each other and spread out the locations. That right there would save them money. Having stores close in major cities is stupid. EB Games and Babbages did the same thing when I was a teenager. There were usually at least 2 stores in the same mall for no reason.

Spread out and cut out mgmt. jobs that aren't needed and it'll be a great first step in their turn-around.

inner-G · Jun 24, 2019

Dr.Ifto said:
One thing I have noticed with Gamestop is that they are everywhere around me. Within 10 miles there are 5. If I go 10 miles south, there are 10 within 10 miles. There is literally 1 a mile from another. I think if they consolidated a bit, it would be better for them. They have too many stores.

In our town there are two that are in strip malls that literally back up right against each other. One is even a prestige store

I think there are probably like 15+ stores in a 10 mile radius. It's like Mattress Firm lol

GoldCartridgeGamer · Jun 24, 2019

Dark1x said:
This is why I hope they survive. Digital distribution is the end for me.

Same here. The day consoles go all digital is the day I bow out. I still buy all of my games physically. I rarely buy a game, if at all, when it is available digitally only. I hold out in hopes the title gets a physical release.

Alucardx23 · Jun 24, 2019

TeKFaN said:
Selling physical media is not why they are having issues LOL

Don't know how what you answered relates to what I said.

Aiervon · Jun 24, 2019

xinoart said:
Weird. I haven't traded anything to them in about 7 years. I wonder how I traded those games in and got that same promotion years before they did it again. I must be confusing it with that time I went back to the 50s to set up my parents. See my mom got confused and was attracted...yanno...that's a different story. Maybe I'll turn it into a movie. Or a trilogy.

Glad to know you're just confused.

Hogendaz85 · Jun 24, 2019

Primethius said:
Does GameStop still sell opened games as new?

Not sure why I would give them money over a retailer that actually sells new products.

What it was they would open several copies to use for shelf displays and when all other sealed copies were sold they would sell the opened display one as new also employees were allowed to rent new games for 3 nights or something but there was a rule where they had to wait for used copies or wait a week after new release. Lots of times this rule was bent. I always gave people a discount on the open one if it's all we had. They would put a sticker over the case and say that was the seal and if not opened it could be returned as new. Place was only fun because of the people I worked with. Otherwise as a company it was frustrating

Barrel Cannon · Jun 24, 2019

ElectricBlanketFire said:
I was joking.

I know, I was entertaining the idea of it though. I'd be down for a crazy shift in marketing towards adults. Some adult-like arcade without the alcohol(we already have plenty of those)

Gusy · Jun 24, 2019

I was in Miami last week. Went to the Aventura Mall store. I was considering getting a pre-owned copy of Nier Automata for the PS4. Turns out that a brand new copy on Amazon is considerably cheaper than a Gamestop pre-owned copy . So yeah.. Gamestop is definitely going out of business.

I have such good memories of the Electronics Boutique era, especially when we had those big PC Game boxes displayed. It was a beautiful time..

headspawn · Jun 24, 2019

They should've created a competent digital store, that encompasses console & PC, as an extension of the previous set-up that would allow you to trade credit towards physical or digital items, like 10 years ago. The moment Steam started picking up Steam, they should've been getting their feet in the door instead of looking like fucking morons with a single tiny display with like 5 copies of 4 PC games.

Alucardx23 · Jun 24, 2019

PancakeFlip said:
This actually might be true for most people despite what people here constantly claim, though anecdotal I was in line at a gamestop and overheard a textbook casual saying that the PS4 would be his last console if things kept trending towards digital and GAS, most people around him didn't sound enthused at the mention of it either. If the casual finds out they don't have a choice, I'd be willing to be most would jump ship.

Don't know how you can simply reject all of the data that points to digital distribution taking a larger market % from physical every year. I cannot even begin to understand how someone could think that the distribution method is more important than the game itself. I have enjoyed several amazing experiences that games have offered me and will continue to enjoy them regardless of the distribution method. Someone that says "I will stop gaming if it all becomes digital only", it's thinking in a bizarre way and looks more like a fake threat that a small kid would make. Just imagine your top 10 games and then imagine you not playing any of them because they were released in digital only.

Multiverse Moo · Jun 24, 2019

Dark1x said:
This is why I hope they survive. Digital distribution is the end for me.

Really like them discs, eh?

deftones r cool · Jun 24, 2019

Milo Rambaldi said:
I went into my old GS yesterday, the one I worked at for years, and it's like night and day compared to when I worked there. It was sad. Their pricing is completely screwed up for what a used item should cost and the toys, even with a huge profit margin, cannot possibly sell enough to warrant the inventory levels each store is stocking.

I don't want anyone to lose their jobs but my city doesn't need 6 locations - 5 of which are in a 5 mile radius of each other. Not counting the ones in little towns right outside of here. They should also adjust their hours - from experience, no one goes to buy video games generally between 7:30-9 at night. Also, their DLs and RDLs are paid ridiculous amounts of money to generally work from home and be very hands off. I know the DL from my district is still there and is stuck in the 2005 GS model. "We should push reserves because they make us money!!!!" was his philosophy and the people I know who still work there say that is still the case. He's out of touch - it's not even the company focus anymore. Gamestop really needs to embrace its niche opportunities, put retro games into stores again, and appeal to people who want video games and not toys. I say this as an action figure collector but things like that should be stocked online and be special orders so they're not taking up/cluttering the storefronts.

But hey, what do I know? I wouldn't hard sell to people and, even though I put in 8 years there, my DL very much disliked me for it. Jokes on him, I guess.

When I was an SGA/keyholder for my few month tenure, it was not long after GS had acquired Think Geek. Funko Pops, t-shirts, and toys were actually generating a larger portion of the sales than new games. Still pretty sure the pre-owned stuff was the main driver given the ROI though.

dabri · Jun 24, 2019

TitanicFall said:
They could provide a local game renting service. They have a huge catalog to pull from.

They tried that.

Prophet Five · Jun 24, 2019

deftones r cool said:
When I was an SGA/keyholder for my few month tenure, it was not long after GS had acquired Think Geek. Funko Pops, t-shirts, and toys were actually generating a larger portion of the sales than new games. Still pretty sure the pre-owned stuff was the main driver given the ROI though.

I guess I should have clarified better but yeah when it launched it was a "new" thing and they were making some money but they just kept filling up stores with this... stuff. I'm hesitant to call it junk because someone out there probably likes it but now it's more "CollectStop" than games with multiple clearance tables (that still make profit as I'm told) because so much of it just never sells. They went too far in the other direction.

Like when we sold iPhones and iPods and stuff. We'd take the trades ALL THE TIME and give out pretty decent amounts for them. But our district rarely sold any of that stuff. It was overpriced and just sat in the cabinet display losing value every time a new ios or device was announced. No one wanted an iPad 1 for $500 when the iPad Air was the current thing. At least not in an "$30K average income" city. It was rough and I imagine the toy thing is similar now. They see it making "a lot of money" at the beginning and trend too far in that direction.

xinoart · Jun 24, 2019

Alucardx23 said:
Don't know how you can simply reject all of the data that points to digital distribution taking a larger market % from physical every year. I cannot even begin to understand how someone could think that the distribution method is more important than the game itself. I have enjoyed several amazing experiences that games have offered me and will continue to enjoy them regardless of the distribution method. Someone that says "I will stop gaming if it all becomes digital only", it's thinking in a bizarre way and looks more like a fake threat that a small kid would make. Just imagine your top 10 games and then imagine you not playing any of them because they were released in digital only.

It's not a fake threat. Think about it this way, if you can't download a game in a week, why would you be hell bent on buying it? I have this problem. My location is the issue and nothing more. Telecomm companies in the US do not care about infrastructure unless they can make a huge profit on it.Sorry but if the infrastructure continues like this, the game industry as we know it will change and not in some blissful "everything is in the cloud!" kind of way. The majority of people around the world don't have high speed bandwidth to download huge games. Until it becomes as ubiquitous as lights at a street intersection, a huge part of the market will not be able to follow the industry, whether you want to believe it or not.

How many times does it need to be said that this forum or any game related forum is not the vast majority of video game users? The vast majority of the world does not live in first world countries in a middle-to-upper class in the population and have access to high speed internet.

MrNewVegas · Jun 24, 2019

Nothing can be done. Once gamers rise up it's an unstoppable train.

striderno9 · Jun 24, 2019

I like having a dedicated game shop but it's hard to compete with an online market.

Bit_Reactor · Jun 24, 2019

Dark1x said:
This is why I hope they survive. Digital distribution is the end for me.

Same here.

Luckily there are still stores and the only other thing I can imagine happening in the future (hopefully) is getting the physicals direct from the publishers.

I refuse to go all digital.

Aiervon · Jun 24, 2019

Milo Rambaldi said:
I guess I should have clarified better but yeah when it launched it was a "new" thing and they were making some money but they just kept filling up stores with this... stuff. I'm hesitant to call it junk because someone out there probably likes it but now it's more "CollectStop" than games with multiple clearance tables (that still make profit as I'm told) because so much of it just never sells. They went too far in the other direction.

Like when we sold iPhones and iPods and stuff. We'd take the trades ALL THE TIME and give out pretty decent amounts for them. But our district rarely sold any of that stuff. It was overpriced and just sat in the cabinet display losing value every time a new ios or device was announced. No one wanted an iPad 1 for $500 when the iPad Air was the current thing. At least not in an "$30K average income" city. It was rough and I imagine the toy thing is similar now. They see it making "a lot of money" at the beginning and trend too far in that direction.

Nah, unlike the tech play, this collectible play is legit. They're seeing double-digit growth YoY in revenue and profit within that department. The margins are insane and the products they can't sell aren't being purchased at a price point that makes it ineffective as an overall strategy. They do need to get more strategic in how they purchase as there is definite room to create a much larger margin in revenue/profit, but unfortunately, most of the people they have making these decisions really don't seem to have a personal grasp of the market (or so it's felt like).

Dizastah · Jun 24, 2019

bell wood's jet cola said:
Yep.

It's just too convenient and easy to go digital. I know it's not feasible for EVERYONE, but it's feasible for most of us.

This

is Gamestop really in trouble, and how can it recover?

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