Most of the floor space I've seen in the GameStops around here is dedicated to merch now. And apparently it sells decently. I could see GameStop permanently becoming sort of a generic "geek store" to compensate for the lost sales volume of used software (which is their primary source of profit).
Well they are branching out further than that, even selling the likes of Transformers, My Little Ponies and non-gaming board games.
Some days I just blow up.