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Forums - Gaming Discussion - Leak Reveals Gamestop Is Basically Shutting Down

Camelot331, a Youtuber who has previously leaked Gamestop layoffs via an unknown source, just uploaded a video claiming that Gamestop is shutting down almost completely.

Camelot explains that the the next massive lay-off for the company is being called "Phase 3", where "Phase 1" was the initial regional manager lay-off at the beginning of August and "Phase 2" was the dismissal of over 100 corporate employees, including almost the entire senior editorial staff of Game informer. Now, "Phase 3" will see the shut down of almost every Gamestop retail location across the country.

Camelot explains that at a recent annual manager's conference, managers were told that in order to "save the company", a few retail locations would be transitioned into retro gaming and tabletop gaming stores, while the rest would be shut down. The news was extremely distressing to the managers, according to Camelot: "One guy told me that his district manager basically locked himself in his office and just doesn't talk to anybody."

Now, according to Camelot, district managers are required to create a list of employees that they "desire to keep" after the transition, that are "talented enough" to stay past Phase 3.

Gamestop operates 4,400 store in the U.S. and according to Camelot, by the end of fiscal quarter 4, over half of those stores will be permanently closed. The remaining 2,000 stores will be re-imagined as table-top/retro-gaming stores. The less profitable stores will be the first to be eliminated, and Camelot believes entire districts will be completely shut down.

Camelot goes on to hypothesize that regional managers will be eliminated all together, as the district manager position will be more than enough to cover the remaining store. He claims that phase 3 has been corroborated by 5 different Gamestop employees.

Gamestop stock has been suffering for over a year. Digital sales are on the rise, and the transition to merch and toys over the last few months was apparently not effective in bringing profitability back to the failing company. The partial closure is most likely a temporary way to give stock prices a boost before the company goes down for good. We've reached out to Gamestop for comment, and will update this story if they chose to respond.

Link: https://www.thegamer.com/leak-reveals-gamestop-basically-shutting/

Video: https://youtu.be/6on5by6zdAQ

As much as people hate Gamestop, this would be very sad news. 



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Think everyone saw this coming. Won't lie, not the biggest fan of Gamestop and rarely ever go there, but that time they had that Mario Kart 8 pre-release demo which they let me play for hours was a big highlight for me. Oh they also had a similar event for Pikmin 3 which was uber fun as well. Now where can these events be held? D:



This would suck royally if it's true. I buy almost all of my games from GameStop. My local stores have always been very nice and helpful, and not overly aggressive like some of the horror stories I've heard online. Now, when I worked at GameStop back in 2011 I didn't particularly like the experience, as the quotas for pre-orders were excessively high, almost like the place was intentionally designed to have high turnover for non-management personnel, but my experience as a shopper was never negative. It's nice to go somewhere where the employees actually know and are excited about what they sell. They're actual fellow gamers like me. Plus I've always enjoyed the midnight launch events. If there's a game from a series I really, really like, I've always made a point to preorder it to get it right when it drops. I still remember going there back in Nov. 2004 to wait in line in the cold to get my copy of Halo 2 and talking to friends and other gamers about our experiences playing LANs in Halo CE. 15 years later, and I'm still doing it. I hope to be able to do it as well once next-gen drops next year (I'm likely getting an Xbox 4 along with Halo Infinite).

Shopping at GameStop is not like shopping at Walmart or some other big box where the employee is just dispassionate, could clearly not care less about the product, and is often not available to actually get a game for me. Last time I tried interacting with a Walmart electronics department employee was when my nephew wanted a game and it took forever for them to help me. Big boxes are so impersonal and usually criminally understaffed, with the employees they do have being woefully apathetic and are just there for the paycheck. And I don't like ordering online if I don't have to. Sure, sometimes Amazon has some great deals on games if you're willing to wait a few months, but I don't like having to wait for something to be delivered when I could just take the ten minutes to drive to GameStop. I'm still very much an old-school person when it comes to a great many things (I don't even own a smartphone), and I try to support brick-and-mortar, especially specialty retailers, when I can.

What puzzles me is how GameStop is struggling at all. The ones around here always seem to have healthy business, with consistently strong turnout at major game releases (I'm going to pick up Gears 5 from there tonight). And their financials have shown that, aside from a single-quarter hiccup recently, they've consistently been in the black. Investors are being bearish towards them (shareholders for any company always being a very skittish lot), but that doesn't mean they're struggling. Their financials are sound, even if they aren't part of a growth industry anymore. If they did shut down soon, it would surprise the hell out of me.

And honestly, I can say that there have been more times where I wish the internet never came into being than times where I've appreciated its existence. Its impact on retail has been one of the many things that make me resent its existence. If GameStop disappears, I fear what this could do for the future of physical media. It's not necessarily an inevitability that physical games as a share of all console software must inevitably trend towards zero (or at least an extremely low percentage) like music or PC games have. It didn't happen to books at all, and hasn't happened to home video (at least not yet). But with GameStop gone, how many gamers will simply give up on physical because they feel the changing retail landscape has made buying it a hassle? I mean, I certainly won't because I actually like owning what I spend money on, and while I won't like it I will suck it up and move to Best Buy (as long as they're around). If console gaming ever abandons physical media, that's the day I abandon the gaming industry. I'll still have at least nine generations and nearly half a century worth of games to go back and play, and that would be enough to last me the rest of my life. I'm almost 40, so I'll likely be well past the halfway point of life if and when console gaming reaches that point, and my old ass will have plenty to keep me busy.

Last edited by Shadow1980 - on 05 September 2019

I don't think physical media is going away, but Gamestop may be another matter. I don't think they are managed well. Whenever I go into a Gamestop nowadays I see this tiny little section for Switch games with huge sections for PS4 and XB1 games. The Switch basically has the same shelf space that the Wii U did. Is it any wonder why Amazon always over represents Switch sales? Tons of Switch customers go to Amazon, because Gamestop is just not going to be their store. They can get the Switch games they want at Amazon, but not at Gamestop.

Surely Gamestop knows that the Switch is selling a lot better than the Wii U, but they haven't changed their behavior accordingly.



The transition to retro games and tabletops is actually a great idea considering how much of a thing of the past Gamestop is.



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EB Games in our region (Quebec) are faring good so far, so I guess this is more concerning for the american market which is truly sad for the market in general, specially since we're talking about a shop that's specialized in the medium which makes your experience as a customer more worthwhile than going to a Walmart/Best Buy imo.



Switch Friend Code : 3905-6122-2909 

Damn... there goes another dinosaur. Like them or hate them, this is not good for the industry as a whole :-| Having full digital monopolism is not an idea I adore.



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The_Liquid_Laser said:
I don't think physical media is going away, but Gamestop may be another matter. I don't think they are managed well. Whenever I go into a Gamestop nowadays I see this tiny little section for Switch games with huge sections for PS4 and XB1 games. The Switch basically has the same shelf space that the Wii U did. Is it any wonder why Amazon always over represents Switch sales? Tons of Switch customers go to Amazon, because Gamestop is just not going to be their store. They can get the Switch games they want at Amazon, but not at Gamestop.

Surely Gamestop knows that the Switch is selling a lot better than the Wii U, but they haven't changed their behavior accordingly.

You must have a bad GameStop. The one near me has the Switch section out front and it's got to be the same size as the PS4 and XBO sections. They also have a decent sized section for Amiibos. 

Of course, who knows if your store is basing their layout on regional sales or it is just poor management of that store.

@ OP

I've always had a good experience at GameStop. Well, minus the hounding about preordering. Sometimes you get a good employee, who knows people hate it, and he'll ask once quickly and be done with it. But, other times you'll get the overzealous employee who asks you, you say no, but will go through the upcoming releases to try and get you to preorder anyway. I know corporate has quotas for them, but God, they have to learn that turns people off from coming back.



There's almost no chance that this is accurate as presented. Downsizing doesn't happen by getting your employees in a room and telling them that many of them are going to be laid off later this year.

With that said, Gamestop certainly knows that they need to reduce their store count, and they may well see transitioning to other types of gaming as a good move. So, it wouldn't surprise me to hear that some internal discussions along these lines are taking place. There's just no way that they got a bunch of middle managers together to announce their imminent firing.

The other problem with this scenario is that Gamestop is not in imminent danger of collapse. They've been profitable most quarters, and have, as I understand it, a manageable debt load. So, the more likely downsizing process would be one of not renewing leases as they expire, and reducing the store count in a more natural way. That's really the only way that a company like Gamestop can do it. Landlords don't just say "sure, Gamestop, even though you have some cash, go ahead and not pay the rent for the three years left on your lease. We'll just let the store sit empty." The only thing in this "leak" that seems like it could be strictly true is the transition of some stores into tabletop gaming. That would be another way that they could, in a sense, reduce the store count without a bankruptcy filing (which they can't do, because they're not bankrupt.)



The other reason to think this ain't accurate - nobody, except some Youtuber, is reporting this news. If there were truth here, the business news people would be all over it. So, unless I see those people writing stories on this today, I'll remain confident that this is either total BS, or at least a significant exaggeration.