Forums - Gaming Discussion - Future of GameStop

Gamestop definitely will have to downsize quite a bit.  They don't necessarily have to die off, but they might anyway mostly because their leadership has been pretty bad.  Even going back to Generation 7, they emphasized XBox and Playstation games over Nintendo games.  I'm sure this is because those types of games tended to get traded in more often and Gamestop had higher profit margins on used games.  It was a profitable decision at the time, but it was also short sighted.  Now XBox and Playstation are trying to abandon physical games as fast as possible while Nintendo is still committed to physical media.  On top of all of this, Gamestop has gotten a bad name with a lot of people.

They need a huge turnaround in leadership, with the understanding that they are still going to downsize even in a best case scenario.  If I were them I'd make one more big (and hopefully final) round of downsizing where they keep their most profitable areas and focus on a Nintendo oriented business model.  After downsizing, I'd throw a bunch of money at Reggie and ask him to be CEO for a while.  People like Reggie.  He would help restore their reputation, and he would definitely help them make strong connections with Nintendo of America.  Nintendo is sticking with physical media, so they need to pivot hard toward partnering with Nintendo and away from Sony and Microsoft.  Gamestop needs new leadership and they have a very capable leader sitting on their board, even though he is technically retired.

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Darwinianevolution said:
The push for digital and online retailers have badly local retail stores. Nowadays, either a store deals with a multitude of entertainment products at once, or it's going to slowly fade away.

Yeah, just about the only stores that sell games around here now are major electronics stores or hardware outlets. Other sectors have taken a pounding as well, several chains of clothing stores are on the brink of bankruptcy here as well. Even sporting goods and overall electronics have taken a hard beating.

Nintendo, Sony, and Microsoft should do the following:
-Buy 33% of GameStop shares each to have complete control over the stores.
-Use stores as places for consumers to come in and try latest games and consoles in person. Increase space with numerous consoles for anyone to come in and play, as demo booths, and eliminate or reduce most retail items to sell. Make the stores solely focused on showing off devices in person to impress people so they buy the device. Stop the focus on games and eliminate used sale of games (this alone would justify the purchase of shares by the Big 3 as it will significantly drive profits up by them not losing sales to people buying used games as they will be way less accessible).
-Rebrand it as Consoles too. Interested in checking out current or next gen devices? Want to play prefered games on those devices to see if you like them? Then come to ConsoleStop!

I still think the used physical and simply the physical market in general is just too important to simply expect Gamestop to crumble and disappear just like that. Yes, downsizing will happen due to overall bad management and economic difficulties. Yet, I only hope we get to keep our stores like EB Games in service for a long while, I mean just like Toys r' Us, they seem to be doing way better than their US counterpart :P

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I mean, look at what the PS5 DE and the Xbox Series S represent.

For the same price as a PS4 Pro now, you can upgrade to next gen, just sacrifice your disc drive and get $100 off. As for the Series S, you can get a next gen experience and have every Xbox game you own digitally on their smallest console ever. No matter which side you are buying from, you have to admit that anyone in a low income family is going to be eying these options