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GameStop To Close At Least 150 Stores Due To Poor Q4 Sales (nintendowire.com)
GameStop announced last week that it will be closing more than 150 of its stores globally due to "weak sales of certain AAA titles and aggressive console promotions by other retailers." The chain also mentioned it "anticipates that it will close between two percent to three percent of its global store footprint" in 2017. Nintendo Wire reports: The Q4 window is often the high point of video game sales, yet despite the launch of new hardware in the PlayStation 4 Pro and a few major releases, it wasn't enough in the company's eyes. Despite this, GameStop still plans on opening 100 stores in 2017 which will likely focus more on non-gaming business, such as the Spring Mobile brand and vinyl collectibles. GameStop CEO Paul Raines said in a statement: "The video game category was weak, particularly in the back half of 2016, as the console cycle ages. Looking at 2017, Technology Brands and Collectibles are expected to generate another year of strong growth, and new hardware innovation in the video game category looks promising." You can view GameStop's 2016 earnings report here.
Even if they manage to move into other areas of commerce successfully they will still have to close a lot more stores over the next years or else face a full bankruptcy.
had a bad 2016 and are closing significant locations or liquidating. link: http://dealnews.com/features/W...
Should have stocked more Wii-U editions of the new Zelda, idiots. That's why BestBuy ate your lunch.
Please.
what ever happened to blockbusters. i know this is not rentingbut still even at retail stores and tech stors i see dvd's only at the check out line.
Their only option is to start offering in-store interactive porn apps.
I'm sure it had nothing to do with Gamestop's terrible customer service, poor staff morale, product upselling, or the ripoff markup applied to everything in-store. It's so bad that you can frequently buy a brand new video game elsewhere for less than they're trying to palm off some second hand copy. I'm surprised they're even still in business. Same goes for CeX for that matter.
... when the sales of Quake 4 makes or breaks your company.
Can someone please explain this term "Triple-A" i see this term being tossed around in games like a hot potato, however goggling it i find no real concrete definition. Is this just marketroid speech?
between competition and the movement toward digital even in the console market it is only a matter of time till Gamestop dies, either that or they have to evolve significantly away from what is their current core business.
Honestly, I've always thought it crazy just how many Game Stop stores there are. I live in a medium size town and could name 6 or 7 locations (many aren't even that far apart). I'm sure there are other locations here I'm not familiar with on the side of town I don't visit.
Here at least, I don't think anyone would blink an eye if a couple of Game Stop stores went out of business, at worst you'd have to drive an extra mile to get to one.
I almost never go to Game Stop though for two reasons: ... and that probably is the problem. Places like Steam allow you to browse that much easier, and Xbox has their own version, so does Playstation and Wii. It's just easier to shop online, and the demographic game-stop caters to probably don't like being in stores with people as much.
1) They've abandoned the PC. Even as more and more people turn to PC gaming- their PC selection becomes more and more laughable (not even sure if they still have one).
2) They're ridiculously overpriced. Everything is so much more expensive than just buying from Steam, GOG or Greenman gaming.
It is so much nicer to have a box, and browse the wares than do it online, especially if you're just there anyway. It's a hassle to travel to if you're not going there anyway. Fix the price issue though and maybe I, and other customers might return.
"That's the way to do it" - Punch
Gamestop was dead to me when they stopped carrying vintage games. They took over that market and then just left it suddenly. I hope they close all their stores so they stop fucking with our games.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Because they have to spew that paragraph of marketing garbage every time they pick up the phone.
Yeah, I did it. Best Buy had a better PS4 deal than GameStop this holiday season. I did pick up a number of used games from them, so it didn't end completely badly for them. Gamers Club Unlocked means I'll keep coming back to Best Buy, since I'm not an Amazon prime member.
GameStop is notorious for terrible pay, terrible employee treatment, unreasonable sales goals, complete ignorance of what gamers want, and just generally not making good decisions in regards to making customers happy at all. People are voting with their dollars... Gamestop has created a terrible and toxic environment for its employees, and DESERVES its fate. Each and Every GS Executive is Guilty of the Crime of Avarice and Ignorance. The Result is what you See here... 150 Stores will become MANY more in 2017. If you own stock in this company, the time to sell is now :-)
It is ironic that a program called circle of life is what is accelerating the natural death of the brick and mortar game store. Since used games are nearly 100% profit, and new games are closer to 20% profit, stores were given quotas in terms of the percentage of total sales dollars that needed to be from used merchandise. These quotas all but forced employees to lie about stock, and to discourage sales of lower margin items.
When you put your employees in a position where a 0 dollar customer transaction is less likely to put their job in jeopardy than a 500 dollar transaction, you dun fucked up your business model.
Game Stop is like RadioShack. I only go there if I absolutely must have something right away. I do appreciate the fact that I can do that but online is way cheaper and has more selection. I'm not sure a business can survive with that type of customer.
I mean RadioShack sells $0.25 Chinese relays for $6. What the actual fuck! I mean I can understand going with the cheap stuff because that's what people want but then they keep their crazy markup. In other words, they're lowering quality to increase their profit instead of making their prices cheaper. Idiots!
They put their EVERYTHING into selling you a new car, but the real profit comes 2-3 years in when you start needing wear parts replaced and again a few years later for more serious service.
Gamestop didn't learn that lesson. You HAVE to push the new stuff to keep the used stuff happening. They decided to be parasitic instead of symbiotic and the host (the console companies) adapted by switching to online rentals.
It's a shame, because it could have been a very profitable model for building a customer base by making younger gamers able to afford more (but older games) so they're more likely to spend on the new stuff when they're older and have more income.
OTOH, the big guys are greedy enough they probably would have fought the resale market regardless. Maybe Gamestop was just a short-term business model from the get-go.
Retailers who do not have an online strategy for delivering media to the masses will be out of business.
I went to a GameStop to buy Super Smash Brothers Brawl. I waited in a midnight release line of about 20 people, for an hour. Once I got to the front and said I would like a copy, the guy asked 'Did you preorder?'. I said of course not -- else why would I be waiting in a line for the store to open if I had a guaranteed copy. He said 'Sorry we only give out pre orders for new releases'. I asked him to clarify that they did not order any copies for regular customers, and he said they did not, and I could come by some time in a week when they would have copies to sell. I went home and to bed, woke up at 8am, and bought a copy at BestBuy with no wait or pre order nonsense, and that became the last time I ever went in to a GameStop.
First with music stores (e.g. Tower Records), then with video stores (mostly rental - e.g Blockbuster), then bookstores (B Dalton, Crown Books, Walenbooks). Frankly I'm surprised a brick and mortar video game store managed to hold out this long, given that that media was acknowledged as software to begin with. Music, movie, and book publishers mistakenly thought they were selling a physical product, and it took Internet piracy to make them realize they were selling software - a virtual product. There was no such misconception with video games.
The same kind that decided a decade ago that PC games were no longer worth carrying.
That was decided for GameStop when Valve introduced Steam. Before Steam was a download store for PC games, it was the Internet activation method for Half-Life 2. Once more PC game publishers adopted Internet activation, GameStop could no longer accept used PC games.
Redbox and DVD.Netflix happened to Blockbuster and Hollywood Video. This left Family Video as the biggest U.S. brick-and-mortar movie and game disc rental chain carrying older titles.
A combination of two major factors. First off is the major pre-order backlash that's growing, which was further fueled this year by disappointing releases like Deus Ex: Mankind Divided, No Man's Sky, Street Fighter V, and others I'm sure I'm forgetting. The other factor is the Amazon Prime 20% discount for pre-orders AND newly released (within 2 weeks) games. Yes, that's right -- I can NOT pre-order, wait for the reviews to come out, then decide a week later, and STILL pay 20% than someone who ordered from GameStop. There's no drawbacks because the chance they'll "out of stock" (Ha! in this digital age?) is pretty unlikely because they're Amazon. So, unless I'm some fiddly obsessive who cares about collecting the special pre-order skins or starter gear that won't even matter after level 6, why would I pre-order from GameStop?
Of course we all know their stores mostly sell used games. Recently I built a gaming PC and wanted GTA V for it. Searching online Gamestop.com had it cheapest at like $30 and said brand new on their website. Foolishly, I ordered it. It came a few days later, and the box for the game was so battered and ripped, and the game was clearly used. The discs were scratched. I was surprised it actually installed. I was pissed, but at least I was about to play the game. Until the game asked for the activation code. Looking in the box--- no code, actually not even any manuals or anything but the discs. Now I was pissed! So I initiated a return, and the customer service person said that I will be refunded, but MINUS THE SHIPPING!! Can you believe that? They sell me worthless discs, and I'm out money? The game + shipping was $38. Well, after they refused to refund shipping, I did a chargeback and the credit card handled the refund. Turns out, walmart had it in store for $39.99 fully brand new perfect, unopened, and most importantly had the activation code. F you gamestop.
Oh yeah, ancient used players choice versions of popular Nintendo games selling for $20 gets on my nerves.
If you're referring to used copies of the Player's Choice version of Super Smash Bros. Melee for Nintendo GameCube, it's probably demand from tourney[cigarettes]. A quick Google search shows it going for $60-$70 across multiple sellers.
I went to a game stop the other day to buy a used PS4 controller for use on my computer (for the few games that don't play well with a keyboard)... a new controller with a full warrant, pristine, clean, virgin was $60. A used one with no warranty outside of game stops shitty return policy was $55.
Perhaps if they stopped fucking their customers they'd make some money. I hope they go under and the CEO ends up destitute, alone, and with a raging case of IBS.
People don't want to mess around with disks any more... and you end up having to download the whole thing anyway. People are just downloading games from PSN or the MS equivalent.
love is just extroverted narcissism
There just aren't a lot of games coming out if you don't count download only indies. Gamestop's built off used games. But if there's only 3-5 new games a month and more than half are shovelware with low resale values you're gonna hurt. Add to that most of the big releases are multi-player focused (Overwatch, Battlefield One, For Honor, Star Wars Battlefront) and that DLC is driving the industry (EA makes more off DLC than the original game sales). Also people play the same games a _lot_. For Honor is designed for about 5000 hours of play before everything unlocks (Ubisoft's getting flak for that).
The game industry is changing and retailers are getting pushed out. I don't think there's really a solution to that.
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It seems like there are as many as Subway or Starbucks. Really hope they shut many of them down. They put local and smaller chains out of business, ones that didn't have such a high markup on used games (one of the reasons they were able to expand so much and fast) and offered more variety.
I wonder how many GameStop's 150 store closures are in decaying malls, and the 100 new openings are just part of a relocation - despite the change in emphasis on their primary business model.
I was out at some shopping center recently and I walked into the Gamestop. About a third of the floorspace was dedicated to Funko Pop! vinyl figures and other such novelties that weren't video games. They also had a small, odd selection of movies. The whole thing puzzled me. If I want games I will buy them at Best Buy or Amazon where I get 20% off new titles. (Preferably Best Buy so I can walk into the store and pick it up on launch day instead of waiting for DHL or whoever the fuck to toss it at my door after 8 PM the day after launch despite Amazon's promised launch day delivery.)
I still prefer physical titles because they can often be had for much less money, even at launch, and you have the ability to resell them. Any sort of physical goodies / collectibles are almost always tied to physical releases as well. Yes, it's slightly less convenient to switch discs/cartridges, but I only typically only play one game at a time unless people are over for multiplayer. Among 4 or more of us, I think someone will manage to switch between Mario Kart and Smash.
This has been long overdue for Gamestop. Too many stores, too many crappy policies and prices and too much hassle and upsell.
But on the other hand, my ex girlfriend now works in a Gamestop and it's the first "real" job she's ever had and she is happy working there. It's the sort of happy she needs in her life at this point and I'd hate to see it taken away. No clue if her store will close or not. But even if not now, the writing is on the wall for the company.
Sig for hire.
Their entire business model relies and buying and selling used games for a larger markup. It's to the point that they really don't want to deal with new games at all, which is probably why the under-order new games all the time. It's also why stores engage in shenanigans like claiming to have no new copies of games.
Their entire business model is collapsing under the looming threat of cheap digital games.
After spending as much as $50 / game, Sony and Microsoft think it's "ok" to make new consoles that won't play them.
Okay. Then I think I won't buy new consoles and new games.
Of course that means I don't go to Game Stop any longer either.
And Game Stop's having financial problems.
Huh.
Imagine that.
Sucks that they are losing money on their brands. Whatever, I'm not an accountant or shareholder. What I would like, and can't find, is a list of locations that will be closing. Even on the official press release page, it just lists a bunch of the money figures and percentages of the quarter. Anyone have any sort of ETA on when that list will be available?
and thus we have the millennial version of Blockbuster video
I remember when there were three of their stores within a mile of each other (not long after they bought out Electronic Boutique/EB Games). Two of those are closed now; ironically, the one furthest from the mall in the area survived... right by the "local" Wal-Mart. Anyhow, a big part of that I think was the opening of a local chain of stores that sold videogames.... and movies, and all sorts of electronics, along with miscellaneous goodies and the occasional import piece. Not just the latest and greatest, either -- they have old games for the NES, SNES, Genesis, GB/GBA, and more. Most of their stuff is second-hand (occasionally they sell new stuff, always below the "normal" 60$), but they actually give good turn-in values -- usually ~1/3rd of their retailing price -- and treat their customers like actual customers, not cashcows to be locked up and milked for all they're worth. One of my friends worked at one, and she enjoyed her time there from what she's told me. Basically, I just want to say that actually treating the people you're selling to (and those that work for you) like real human beings is STILL a viable business strategy. This should be obvious, but apparently it wasn't to Game$top's corporate bastards. I'll be surprised if they last another decade... though they just might, if Sony, M$, and especially Nintenduh don't get their acts together digitally and keep stumbling drunkenly about on their digital storefronts.
Can people stop using this completely meaningless term until it gets a strict industry definition?