GameStop to close at least 150 stores

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cathandler
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GameStop to close at least 150 stores

Post by cathandler »

Alpha8472
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Re: GameStop to close at least 150 stores

Post by Alpha8472 »

Gamestop is a business that eventually will go away once digital downloads take over. For now, people still go to the stores to buy games. Gamestop is trying to push their collectibles business. They were commenting on how they made money on Pokemon Go collectibles. This is not a way to run a business. Pokemon Go was a brief fad. Buying 17 ThinkGeek collectibles stores was a random purchase. There is money to be made selling pop culture merchandise, but it will not last forever. You can always buy collectibles online.

Gamestop has bought some cell phone stores and is trying to become a wireless store chain. That is probably the only way this chain will survive. Gamestop stores now sell used cell phones and cell phone plans. Most of their stores will probably become cell phone stores when downloading of games takes over. The cell phone business will be around for years to come. People want to see phones in person before they buy them. They need to go to a store and talk to a real person who can explain cell phone plans to them.

The used cell phone business is not that bad. Prices on their used phones are quite competitive. You can search for used cell phones and it will tell you which Gamestop store has the phone in stock.
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Re: GameStop to close at least 150 stores

Post by Brian Lutz »

I know the Gamestop at Bellevue Square closed a few weeks ago, I assume that one was on the list.

I'm pretty sure that even out of their customer base there are few people out there who actually like Gamestop. The employees at the counter are forced to do the whole used car salesman routineon every customer, the stores are usually crowded and disorganized, and half the time there's simply no reason to even go into the place unless you really want to get a new game on day one (and even that you can probably just do on Amazon.) I've made a total of one purchase from a Gamestop in the last year (and that was mostly because I had a gift card to burn) and can't say they'll be missed when they find their way into the dustbin of history.

It's a textbook example of a business that is well into the process of getting disintermediated by its suppliers, and is scrambling to find something it can sell to try to stay relevant.
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Re: GameStop to close at least 150 stores

Post by Alpha8472 »

Consumerist did an article on how Gamestop is the largest operator of AT&T authorized retailer stores. These are AT&T branded stores that sell those phones, but are owned by someone other the AT&T.

The stores are owned by Spring Mobile which is owned by Gamestop. If the video game store business ever becomes unprofitable, it will be a simple matter to become a mobile phone store.
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Re: GameStop to close at least 150 stores

Post by pseudo3d »

Most of GameStop's money is made on buying back nearly-new games and selling them at an obscene markup. Basically, they sell a new game for $60, buys it back from the consumer at $20-25 (at best), and then sells it "preowned" at $50-55. This not only can't be done with online sales (possibly even restrictive DRM) but it's an unpopular tactic with people that actually play video games. The more profitable "casual" demographic (kids and their generally video game-illiterate parents) don't use this model, where they compete with traditional discounters like Walmart or Target.

They're not really being killed by digital sales (though that isn't helping), but their increasing disconnect with the people that actually play games has harmed them.
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