In a Reddit AMA, a GameStop manager had grim thoughts about the company’s future saying GameStop could be doomed during the next-gen console era.
The future of GameStop, the world’s largest videogame retailer, looks rocky thanks to the threat of digital distribution. There’s also the ugly rumor that the Xbox 720 will require an always-online internet connection, which, if true, means the console will block used games. That would be really bad news for GameStop since used game sales are a major source of the company’s revenue.
When asked if GameStop will die, a GameStop manager said in a Reddit AMA: “I don’t think GameStop will die with this console generation, but I think it’s very possible it will with the one afterward. That, or the company will be less of a GameStop and more of an Electronics Boutique again.“
This reaffirms the notion that brick and mortar stores are in trouble as the videogame industry seemingly heads towards a digital future. It’s already well-documented how sales of physical disc-based games have dropped thanks to the rise in digital sales, however, GameStop has been trying to adapt by selling iOS devices and “pushing digital sales hard (most Steam titles are available through us, for example),” the GameStop manager explained.
He also noted that GameStop has “a solid market share on Microsoft DLC,” but acknowledged that “PC is still a little rough, in my area at least.” Moreover, it was stated that smartphone data plan service Net10 Wireless dropped GameStop’s unlimited data plan around a month ago, which has been “really painful.
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