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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.
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.
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
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.
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.
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.
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.