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Leak Reveals Gamestop Is Basically Shutting Down

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Shadow1980 said:
Hiku said:

I don't think Gamestop going away will have any impact on physical media for console games.
For starters, Gamestop's influence is not as big in other countries as it is in the US. In Sweden we have 41 GameStop stores across the whole country. It's not a very large country, but that's a small amount of stores regardless. If I look at any given large electronics chain, they all have significantly more stores across the country. Which leads me to my second point.

Your experience buying games at Walmart sounds strange to me. When I go to a large store like that (we don't have any Walmart here) to buy a game, the process is simple. I go to the shelf that has the games. I take the game I want. Then walk over to the register and pay for it.
That's it.

Things must be a lot different in Sweden. Here in the States, Walmart keeps their games locked behind a glass case. They've been doing it that way since the 90s. You need to get an employee to get the game for you, and if nobody is in electronics (or the one employee they do have there is busy with a customer) you could be waiting a while. Meanwhile, at GameStop it's far quicker and straightforward process. Best Buy doesn't lock their games away, either, but the one in my area doesn't have nearly the selection of titles as any of the GameStops around here. I honestly can't remember the last time I bought a game from Walmart. Maybe when I worked there and could use my employee discount, but I haven't worked there since 2005.

Well if Walmart is the only one that does it, then it may just be a Walmart thing. Though it's still hard to imagine why that would be necessary, over having alarm cases.

But would you give up physical copies of games simply because you don't get the experience of chatting with the workers when you buy them?

Because if Gamestop closes, and Walmart is too much of a hassle, and Best Buy doesn't have the selection, then there's always online.
Amazon for example can usually (from my experience) have the games shipped out a few days before the release date, so that it reaches you in time.



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Hiku said:

Well if Walmart is the only one that does it, then it may just be a Walmart thing. Though it's still hard to imagine why that would be necessary, over having alarm cases.

But would you give up physical copies of games simply because you don't get the experience of chatting with the workers when you buy them?

Because if Gamestop closes, and Walmart is too much of a hassle, and Best Buy doesn't have the selection, then there's always online.
Amazon for example can usually (from my experience) have the games shipped out a few days before the release date, so that it reaches you in time.

If GameStop ever went out of business I would most likely go to Best Buy for new titles since they do have them, but for older games I haven't gotten around to I'd buy them off of Amazon. Older games usually go for really good prices on there.

I think Target also keeps their games under lock and key, but I'm not sure. I rarely go in there. Best Buy opts to put their games into these anti-theft cases that have to be removed at the register.



Shadow1980 said:
Hiku said:

Well if Walmart is the only one that does it, then it may just be a Walmart thing. Though it's still hard to imagine why that would be necessary, over having alarm cases.

But would you give up physical copies of games simply because you don't get the experience of chatting with the workers when you buy them?

Because if Gamestop closes, and Walmart is too much of a hassle, and Best Buy doesn't have the selection, then there's always online.
Amazon for example can usually (from my experience) have the games shipped out a few days before the release date, so that it reaches you in time.

If GameStop ever went out of business I would most likely go to Best Buy for new titles since they do have them, but for older games I haven't gotten around to I'd buy them off of Amazon. Older games usually go for really good prices on there.

I think Target also keeps their games under lock and key, but I'm not sure. I rarely go in there. Best Buy opts to put their games into these anti-theft cases that have to be removed at the register.

I am appreciating this Walmart/Gamestop discussion the two of you are having, and I just want to inject one more idea.  The biggest reason that Walmart sells so many video games is because there is a Walmart in almost every little town in the USA.  There are plenty of small towns that don't have population enough for many stores, but it is very common to have a Walmart still.  

That means in many small towns people only have one retail option to buying video games: Walmart.  Since they have a small town monopoly, they end up selling a ton of video games nation wide.  On the other hand if a town has a Gamestop, then it immediately becomes a better option over Walmart.  The second hand market immediately makes the effective price of games lower, which means people will end up playing more games, and that means the hardware is also more valuable.  Basically Gamestop makes video games in general a lot more consumer friendly than Walmart alone does.  (And of course a Gamestop store is much more welcoming to gamers than a Walmart is, which was already mentioned.)

Of course there is always Amazon as a competitor to Walmart, even in small town USA.  The fact that Walmart still sells so many games is an indicator that there are still a lot of people who want to stick with the brick-and-mortar retail model.  In fact, people in rural areas have the most incentive to shop online, because they have the fewest retail options.  And I know Amazon is eating into Walmart's market share, and yet Walmart is still in no danger of going bankrupt any time soon.

Basically, what I'm saying is that there is nothing fundamentally wrong with Gamestop's retail model.  On the gaming side it is far superior to Walmart, and yet Walmart is still doing fine.  If Gamestop has any significant problems it would be because of poor management, and not with a flawed or outdated business model.

Last edited by The_Liquid_Laser - on 08 September 2019

Dammit, I misread it as Gamespot and got excited.
That sucks.



 

Everything in the above reply is my opinion, from my own perspective and not representative of reality outside of my own head!

-Android user, please be gentle with critique on my spelling.

I'm doubtful of this because, contrary to popular belief, Gamestop is profitable and is cash flow positive. They only had a lost in this current fiscal year due to some goodwill impairment but they are otherwise fine. This idea that they need to do massive layoffs to stay above water is nonsense.



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Even if I rarely bought at GameStop, less competition is a bad thing, so bad news if totally true. As others do, I think too it's more likely they'll simply resize and possibly turn some stores into more specialised ones.



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The_Liquid_Laser said:
Shadow1980 said:

If GameStop ever went out of business I would most likely go to Best Buy for new titles since they do have them, but for older games I haven't gotten around to I'd buy them off of Amazon. Older games usually go for really good prices on there.

I think Target also keeps their games under lock and key, but I'm not sure. I rarely go in there. Best Buy opts to put their games into these anti-theft cases that have to be removed at the register.

I am appreciating this Walmart/Gamestop discussion the two of you are having, and I just want to inject one more idea.  The biggest reason that Walmart sells so many video games is because there is a Walmart in almost every little town in the USA.  There are plenty of small towns that don't have population enough for many stores, but it is very common to have a Walmart still.  

That means in many small towns people only have one retail option to buying video games: Walmart.  Since they have a small town monopoly, they end up selling a ton of video games nation wide.  On the other hand if a town has a Gamestop, then it immediately becomes a better option over Walmart.  The second hand market immediately makes the effective price of games lower, which means people will end up playing more games, and that means the hardware is also more valuable.  Basically Gamestop makes video games in general a lot more consumer friendly than Walmart alone does.  (And of course a Gamestop store is much more welcoming to gamers than a Walmart is, which was already mentioned.)

Of course there is always Amazon as a competitor to Walmart, even in small town USA.  The fact that Walmart still sells so many games is an indicator that there are still a lot of people who want to stick with the brick-and-mortar retail model.  In fact, people in rural areas have the most incentive to shop online, because they have the fewest retail options.  And I know Amazon is eating into Walmart's market share, and yet Walmart is still in no danger of going bankrupt any time soon.

Basically, what I'm saying is that there is nothing fundamentally wrong with Gamestop's retail model.  On the gaming side it is far superior to Walmart, and yet Walmart is still doing fine.  If Gamestop has any significant problems it would be because of poor management, and not with a flawed or outdated business model.

Walmart has lowered the price of essentially every game to $49.88.  I've noticed it for a few months now.  Sometimes there will be like one or two licensed titles (like FIFA or Madden) at $59.88, but everything else is under $50, even at launch.



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VideoGameAccountant said:
I'm doubtful of this because, contrary to popular belief, Gamestop is profitable and is cash flow positive. They only had a lost in this current fiscal year due to some goodwill impairment but they are otherwise fine. This idea that they need to do massive layoffs to stay above water is nonsense.

Gamestop is in a weird place. 

Yes, they're making money.  But they are still struggling.  Their stocks have tanked, and they're trying to get someone to buy them.  But no one is on board.  

It largely feels like they are getting shut down, just because everyone thinks that it'll happen anyway.  



Used to shop there all thr time, but the annoying preorder, one year warranties and powerup card sales pushes got annoying. Also they rip you off with game trades.

Amazon is the best option outside of digital purchases. I dont know how they've been able to offer games discounted immediately upon release (or even before) but thats hard to beat, and it ensures you support the devs with a day kne purchase/preorder.