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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.
... when the sales of Quake 4 makes or breaks your company.
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.