GameStop’s Downfall

GameStop recently revealed that they will no longer sell itself to another company, even though they were looking for a potential buyer in June 2018. This has caused GameStop’s investment stock to plummet because of the recent announcement. The current trading value dropped by more than 25 percent.

GameStop was one of the biggest gaming retailer stores but it is now facing the same consequences of once popular brick and mortar stores like Sears. GameStop’s downfall came from the rise of digital distribution, making purchasing games online much more convenient and accessible. GameStop has tried to account for lost sales by increasing its pivot towards used game sales and pop culture collectibles. However, the former has most likely been a shrinking margin for the company as well, with subscription services such as Xbox Game Pass, Games With Gold, and PlayStation Now offering a steady stream of older titles for less than their combined retail price.

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2 thoughts on “GameStop’s Downfall”

  1. I think another factor that contributes to GameStop’s downfall is that even the prices of some of their used games are more expensive than a new copy from Amazon. Add to that the convenience of having the game delivered to your house and it’s a no brainer to just order it online.

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  2. I think that this fall of marketability is definitely an indicator of a much bigger trend in gaming and purchasing in general. With Game Pass and PSN and Steam, it’s so easy to buy and enjoy endless games without leaving the comfort of your home. I think the bigger question is how will this affect Gamestop in the long run, as much of its model is dependent on in-person interactions and in-store releases of physical copies. Will they need to move to an online medium as well? Or do you think they’re going to try to tough it out a la the various small comic book stores you can find scattered around that were once hubs for nerds and are now more of a niche establishment?

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