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$300 in Gamestop credit. Should I be concerned?

mindsale

mindsale

Member
Oct 29, 2017
5,911
I see these dire Gamestop forecasts and I have concern for my own small stakes in the chain.

Should I consolidate my credit and drop it on something soon to avoid any losses? How quickly can a chain close? Will they have new product and releases stocked? Can my store credit be forfeit at any time? Am I safe with reservations through, say, March's big releases? June's? Will the company see the launch of the next gen in November?

Are you also playing chicken with store credit, or can the chain turn itself around?

Will the top brass get golden parachutes when the time comes?

Will you miss an ecosystem without that trade-in option, or has the chain reaped what it's sewn with anti-consumer practices and aggressive takeovers?

I'd appreciate input from anyone with a lick of business acumen or knowledge of corporate bankruptcy / insolvency.
 
Einbroch

Einbroch

Member
Oct 25, 2017
18,171
Y'all crazy to think that they won't at least push through the launch of the new generation. It's a big money-maker for them, even if used games sales are way more profitable.
 

JehutyRunner

Member
Oct 26, 2017
3,160
Yeah, I'd say go now. I'd be surprised in GameStop makes it to E3, let alone the end of the year.
 
Squirrel09

Squirrel09

Member
Nov 4, 2017
1,615
I think you'll be safe if you want to save it for next gen. The local game stop might close, but you could always order online.

As a publicly traded company, they would not declare bankruptcy 6 months before their biggest boom in income since switch launch.
 
HammerOfThor

HammerOfThor

Member
Oct 26, 2017
3,866
C'mon guys, Gamestop isn't going anywhere right now, not with the next-gen coming up in a few months.
 

Deleted member 63478

User requested account closure
Banned
Jan 31, 2020
73
mindsale said:
I see these dire Gamestop forecasts and I have concern for my own small stakes in the chain.

Should I consolidate my credit and drop it on something soon to avoid any losses? How quickly can a chain close? Will they have new product and releases stocked? Can my store credit be forfeit at any time? Am I safe with reservations through, say, March's big releases? June's? Will the company see the launch of the next gen in November?

Are you also playing chicken with store credit, or can the chain turn itself around?

Will the top brass get golden parachutes when the time comes?

Will you miss an ecosystem without that trade-in option, or has the chain reaped what it's sewn with anti-consumer practices and aggressive takeovers?

I'd appreciate input from anyone with a lick of business acumen or knowledge of corporate bankruptcy / insolvency.
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Use that credit to obtain limited edition items, you biscuit!
 
OP
OP
mindsale

mindsale

Member
Oct 29, 2017
5,911
Squirrel09 said:
I think you'll be safe if you want to save it for next gen. The local game stop might close, but you could always order online.

As a publicly traded company, they would not declare bankruptcy 6 months before their biggest boom in income since switch launch.
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Ideally, yeah, it would be nice to have a $300 buffer on a PS5 or XBSX. Just the notion of having that disappear is off putting, to say the least.
 
Temperance

Temperance

"This guy are sick"
Member
Oct 25, 2017
5,928
[NO 2FA]
At it's drastically declining value I'll provide you with a fair 5 cents on the dollar. Hurry before the value drops once again.

I'd spend it this year if that was me
 
Emerald Hawk

Emerald Hawk

Member
Dec 12, 2017
280
New Jersey
If there's nothing out right now you want you can always convert it to gift cards for digital purchases on the system(s) of your choice. A company this size doesn't go bankrupt without a TON of warning though so you will have a chance to use them even if they do go under.
 
Dest

Dest

Has seen more 10s than EA ever will
Coward
Jun 4, 2018
14,239
Work
You should use it, but I feel like you have longer than you think. I'd put it towards one of the new consoles.
 
Symphony

Symphony

Member
Oct 27, 2017
4,361
They'll be trying to bide time until the next gen launches, but how it went with Game was after the back of a rough Xmas season the cash dried up and they without notice turned off the servers for gift cards, loyalty cards etc. then announced administration a few mins later. The reason that happens is because the assets have to be frozen to be offered up for sale.

So yeah, your store credit becomes either temporarily (if a buyer is found AND if the buyer honours existing credit) or permenantly forfeit the second they enter administration. Store credit in a company that isn't performing well is a game of chicken, I doubt there are many people on Era that are qualified enough to make a comment on the likelihood of the company making it until next gen, so realistically it comes down to how much of a gambler you are.

Personally I'm not the type to take risks so in your shoes I'd be either looking to sell my credit (if it is just a paper voucher anyone can use) or cash out on stuff that I can use. Like say digital credit, or something I can resell for very little loss (not a console). But that said, I would still say there is a decent chance they survive until next March, they'll be trying to secure enough funding to bank everything on padding the numbers at Xmas with next gen sales and potentially finding a buyer.
 
OP
OP
mindsale

mindsale

Member
Oct 29, 2017
5,911
Emerald Hawk said:
If there's nothing out right now you want you can always convert it to gift cards for digital purchases on the system(s) of your choice. A company this size doesn't go bankrupt without a TON of warning though so you will have a chance to use them even if they do go under.
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What are some of the warning signs? Would they discredit their in-store currency while still operating?
 

Deleted member 11413

User requested account closure
Banned
Oct 27, 2017
22,961
They will not close before the new consoles launch at the very least. Even if they do start closing, they have to liquidate the stores. Toys R Us took months to clear stock and finally close up.

People telling you that you need to spend it now because Gamestop is just gonna disappear off the face of the earth in weeks have no clue what they are talking about.
 
OP
OP
mindsale

mindsale

Member
Oct 29, 2017
5,911
Symphony said:
They'll be trying to bide time until the next gen launches, but how it went with Game was after the back of a rough Xmas season the cash dried up and they without notice turned off the servers for gift cards, loyalty cards etc. then announced administration a few mins later. The reason that happens is because the assets have to be frozen to be offered up for sale.

So yeah, your store credit becomes either temporarily (if a buyer is found AND if the buyer honours existing credit) or permenantly forfeit the second they enter administration. Store credit in a company that isn't performing well is a game of chicken, I doubt there are many people on Era that are qualified enough to make a comment on the likelyhood of the company making it until next gen, so realistically it comes down to how much of a gambler you are.

Personally I'm not the type to take risks so in your shoes I'd be either looking to sell my credit (if it is just a paper voucher anyone can use) or cash out on stuff that I can use. Like say digital credit, or something I can resell for very little loss (not a console). But that said, I would still say there is a decent chance they survive until next March, they'll be trying to secure enough funding to bank everything on padding the numbers at Xmas with next gen sales and potentially finding a buyer.
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Ugh.
 
VariantX

VariantX

Member
Oct 25, 2017
16,980
Columbia, SC
I'd spend that shit and keep it moving. The company's future is way up in the air and there's no guarantee you'll be able to should it start to fold.
 
TSM

TSM

Member
Oct 27, 2017
5,853
Gamestop is at the very least trying to limp along to the start of the next gen of consoles. So I don't think there's a danger of your credit disappearing before then. Of course if the new launch signals the turning point of a large segment of console buyers switching to all digital Gamestop may not be long for this world after that.
 
Morbius

Morbius

Banned
Oct 25, 2017
1,008
Bro just use the credit lmao what is even the point of this post? Im not trying to seem rude but you dont need a business degree for this
 
Squirrel09

Squirrel09

Member
Nov 4, 2017
1,615
mindsale said:
Ideally, yeah, it would be nice to have a $300 buffer on a PS5 or XBSX. Just the notion of having that disappear is off putting, to say the least.
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Yeah, that makes sense. I remember my local coffee closed down and I had a $50 gift card from Christmas. I was pretty bummed. If I was in your situation I would plan to save it and spend on next gen, but also have a plan B with it incase they announce something.

Remember, it won't just shut down and lock doors one day. It would be like Toy's R' Us when they had like a month long closing sale.
 
Snake__

Snake__

Member
Jan 8, 2020
2,450
I would think you'll be fine as long as you use it at or before next gen launch
GameStop should stay afloat long enough to see how much next gen helps their revenue
(Almost certainly not enough)

Definitely can't hurt to use it sooner if you can though

I've always thought the downfall of GameStop is how bad it underpays store managers
There are tons of super qualified people that would love to manage a GameStop and better pay equals thousands of people more motivated to come up with ideas to improve the company
 

Still a Gray Area

Member
Oct 27, 2017
526
Gunny T Highway

Gunny T Highway

Unshakable Resolve - One Winged Slayer
Member
Oct 27, 2017
17,188
Canada
You have at least till around some time after the next gen launch to use it. But I would try to use up the credit sooner rather than later.
 
chandoog

chandoog

Member
Oct 27, 2017
20,127
I don't think GS is closing down next week. Even if they announce they're closing everything, you will have some period of time to be able to use that credit.

Save it for the next-gen launch.
 
Diarrhea Day-Lewis

Diarrhea Day-Lewis

Member
Oct 27, 2017
20,829
No. It's not doing great but it's demise is exaggerated a bit. I'm sure it has a year or two if literally everything that could go wrong goes wrong at the least.

next gen should give it a good bump. Hopefully it doesn't go away. It would be awful for consumers, game preservation, low income families, etc
 
Ricky_R

Ricky_R

The Fallen
Oct 27, 2017
3,997
Use it on next gen consoles or next gen games. It's not like they will close down this year.

They will want to make some cash from new hardware these holidays and next year.
 
Sidewinder

Sidewinder

Member
Oct 25, 2017
7,407
If there's somebody around you who wants to buy a console at GameStop, offer them to buy it with your credit and get cash from them.
 
Emerald Hawk

Emerald Hawk

Member
Dec 12, 2017
280
New Jersey
mindsale said:
What are some of the warning signs? Would they discredit their in-store currency while still operating?
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Just news reports of a store filing for bankruptcy. I was exaggerating by saying a ton though, sometimes you may have only weeks to use cards before they stop being honored. It's up to the bankruptcy judge. And as other posters mentioned, if they just close stores near you it may become inconvenient.

Personally, I convert my Gamestop gift cards to Nintendo e-shop cards as soon as I get them, I don't mind buying most things digital these days.
 
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