Gamestop is on its way out


#1

Continuing the discussion from Trade in your last-gen copy of GTA V at Target and get $30 towards the new version:

Moving here because it’s off topic for that GTA post.

I’m sure @PreshusKitty is the #1 employee. Also, congratulations. It’s good that they’ve hired someone that knows video games.

The larger point is that they’ll be out of business in 5 years unless they dramatically change their business model. They are to video games what Barnes & Noble or Borders was to books 5 years ago. Sony and Microsoft have pulled the trigger on digital downloads.

Gamestop used to sell PC games, too. So did EB Games. Remember? They don’t anymore because there’s no market for it above digital downloads. It’s only a matter of time before that happens for console gaming now that the console companies are pushing incredibly hard on it.

Gamestop pays for exclusives from publishers by way of guarantees. The point at which this no longer makes sense or they can’t make those guarantees will mean the end of Gamestop.


Gamestop might be leaving public trading
#2

Your joke.detection api is off :wink:

For note, EB is doing well in Canada and Australia.

Also, Gamestop bought Impulse from Stardock (Sins of a Solar Empire) some number of years ago and uses it for online and in-store game distribution.

They also do offer digital console stuff, but it is a total joke and almost serves to further-validate your point there.

To be clear, I’m not saying GameStop isn’t evil, they’re just not Origin evil :wink:


#3

Being evil is irrelevant to the fact that they will be out of business in 5 years.


#4

We’ll see. Given the general lack of competition combined with mouth-breathers, I don’t think they’re empire will crumble that fast. Eventually? Probably, but I give them closer to 10.


#5

I think you’re underestimating the momentum.


#6

Maybe; I have a tendency to under- and overestimate and I don’t have a bunch of logic cores to help me out :wink:

I just think it’s going to take another generation before people are willing to embrace the idea of digital-only(or at least -mostly) console. We’re already seeing it moving that way, but as long as the games are made on disk, I think the company will survive. I’m placing money on the next console gen in 8-10 years, hence my 10-year estimate.


#7

I think your right. Digital downloads and Amazon delivering to people’s doors is gonna be the end if them. Places like target and taking used games now as well, which is there only niche. I think that in time they will sercum just like blockbuster. The problem is each location has an enormous amount of overhead to run. They have to pay for lease, electricity, stock, employees, and franchise fees. Each individual store has much less profit, because if these things.


#8

Everything is heading towards digital downloads. If that is not competition I don’t know what is. If Rockstar decided to release GTAV only via digital download, to save printing, packageing, etc cost, Gamestop would have been left in the cold. I agree with @Vocino, their days are numbered. RIP Gamestop.


#9

I’m with auth on this…

Gamestop is here to stay since the majority of Americans are lazy morons.

I mean I’ll put it to the community:

How many of the strats community pre-ordered or returned games to gamestop in the last year?


#10

This is exactly the opposite of your point. This may be true and that’s why the Gamestop model will die.

The issue right now is an education campaign. Rest assured that Microsoft and Sony will be spending hundreds of millions (perhaps even billions) on an education campaign in the coming years. Couple that with the fact that both consoles have a built in captive audience to their marketing efforts (as the gamer is on the console)—that’s something Steam never had and had to climb uphill for. Sony and Microsoft have it way easier than Valve.


#11

But Microsoft and Sony don’t treat us like the Church of Gaben does:


#12

But console gamers are “lazy morons” remember? It doesn’t matter.


#13

It is intentionally an oxymoron, lol.

My intent was basically what you said, people are lazy BUT they are too stupid (Stuborn? Uninformed?) to switch from what they know.

They could buy from Amazon, Stream, or any other online service.

They could sell back to Ebay, Amazon, or any other online trading service.

But they don’t.

Instead they pre-order from Gamestop, Best Buy, Target or Walmart and then sell back the game they bought for 60-75 dollars to Gamestop for (pardon my trade in pricing ignorance) about 15 dollars.


#14

Going to agree with @Vocino on this one. Gamestop is on their way out because of digital consoles. I think the next gen consoles that come out will be digital only. It will only make sense as it will slim their consoles (already being backwards non-compatible) and lead to lower costs of just having servers to preload everything. Gamestop has been dead to me for years because I am most definitely lazy in some aspects such as: buying games from my console rather than driving 5-20 minutes to pick up a disc that will eventually shit itself from sheer use. Digital is much more reliable as it will always be there once you buy it. To me there is 0 point in buying discs anymore for those reasons (laziness and digitize me captain!).


#15

That’s because Sony and Microsoft have only very recently starting pushing their digital downloads. These are stores available inside the consoles they are sitting there playing on and that have their complete attention. That coupled with a huge marketing campaign around education that it is easier, faster, etc.


#16

#17

Don’t you mean current gen?

I mean MS tried doing a digital distribution method with the Xbone, the consumer reaction turned out so poorly that they ended up scrapping the whole thing.

I totally agree that Gamestop SHOULD die (sorry auth’s wife) but while MS and Sony work on a digital dist method sites like greenmangaming.com deal exclusively in digital media and they are doing fine (?) as a digital middle man. I don’t think that Gamestop will sit back and watch as their business dies, not unless they are way further down the corporate inbreeding then I assume.


#18

No, he means next gen. As in, they won’t even have a disk drive. I agree with him.


#19

Please let there be hot-swap HDD technology next gen.

prays to filthy console peasant gods


#20

Did you buy your copy of Destiny from the PS4 digital marketplace?

I mean I understand that the above question ignores timing, they haven’t fully introduced their marketplace.

Ultimately though that just changes the statement of “Gamestop is on its way out” to “retail stores are on their way out of the gaming market” and I just don’t see that happening.

If we are isolating gamestop and saying “This ONE business will die” what makes up a majority of the revenue that Gamestop pulls in? I would ASSUME it would be the re-distribution of videogames.

Okay, Consoles axe that portion going forward. So next gens only allow digital marketplace sales (ignoring that they now carry a monopoly on a very specific ware) Gamestop will still have a huge backlog of re-selling games and devices that still exist under their business model.

Then you have the business of digital middle men as I mentioned (greenmangaming.com - gog.com - ect). If new consoles ONLY allow digital purchasing, as said before I am ignoring the other major retailers and only focuing on Gamestop, my guess is that they will push themselves into the role of digital middlemen.