https://www.youtube.com/watch?v=znYvhKTgx10

Spawnwave made a video about Gamestop's recent struggles. With such huge losses in revenue, not surprised to see stock drop as well.

Question I have is if Gamestop will turn into the next Blockbuster

Prediction - It will either shrink tremendously, and increase its focus on retro games, or Gamestop will cease to exist within the next 5 years.

They also get hit harder when malls start closing down now that JcPenney, Macy and Sears announced they will change their business model since people don't go to the mall anymore.

malls are still incredibly popular in metro areas.... it just never was sensible (especially in an internet age) for there to be a mall in every single rural area on the planet.

I know in the DC / NOVA metro area there are quite a few large malls that are always busy. (annoyingly so in fact, to the point where you can't find seating in the Food Court or walk around without bumping into people). Any big retailers who long term were hoping for malls to work in the middle of nowhere towns weren't being realistic. Malls work in urban/metro areas where there are gigantic populations of people who want to be able to go to one 'all in one' storefront essentially.

The issue is when Gamestop and the like have MULTIPLE stores in ONE mall, or like 3 stores in a tiny town. There just are too many Gamestops. Where I'm from there are literally like 5 Gamestop in a few square miles in the biggest shopping area. Its insane.

Also note that JCPenny's/Sears/Macy's have been struggling for forever.

You don't see the Walmarts or Costco's or Panera's or Best Buy's closing down everywhere. Tbh I don't really see a reason for Gamestop in this market anymore. If you want an obscure third party game someone can buy it online on Amazon or other sites, if you want general games Best Buy / Walmart / Target usually have them....

Gamestop literally ONLY offers a bigger selection at times. But worse prices, mediocre rewards for being a member (especially when compared with the pre order bonuses and 20% discount for being a Prime member or Best Buy gameclub member). Not to mention some of Gamestop's terribly unfriendly consumer strategies (trying to convince customers to buy used over new, OPENING brand new games and then repackaging them, etc.)

Physical retail still has a heavy presence it just doesn't have room for 3000 Gamestop locations EVERYWHERE when they're providing mediocre services. I mean just as an example- I preordered and picked up my Switch from BEST BUY on launch night. Sure, there is a Gamestop right closeby. But its tiny and the employees just harass you. ugh.

I honestly don't think Gamestop will be missed. If anything their absense will give more room for the 'mom and pop' game shops to do better, ones that sell both vintage and new.

Not a big surprise, personally GameStop (or EB as they're known here) is kind of redundant. Amazon and BestBuy have better deals for new games and there's countless local stores that sell used games around here.

There's not much reason to visit GS/EB for me anymore.

EDIT: Wow GS has 7 times more locations than Best Buy, that's crazy.

When they have nonsense like that $600 switch bundle. I can't say I will be sad if they do happen to go down in the future.

When you can get the products just as easily online, there has to be a reason you'd want to go to gamestop instead. And since their staff tends to be unknowledgeable and frequently pushy, there's just no point.

But GameTrust... 😐

Not really when you consider the size of a best buy compared to the typical gamestop.

At the same time, do they really need 7x more?

If Best Buy had, say, 5000 stores, that means gamestop has 35,000. I am pretty sure you do not need 35k Gamestops in the US. 

It becomes unnecessary and a headache. Get rid of stores with smaller profits and focus on doing well with every store.