[GRAIN OF SALT] Some Gamestops might be pivoting to PC-centric stores

[bing]

Some people on the "Wall Street Bets" Reddit forum have been calling Gamestop shipping hubs and have found out that some of them will be turning into Microcenter-esque PC-centric stores. Here are the reddit posts:

https://www.reddit.com/r/wallstreet...led_gme_about_pc_hardware_heres_the_audio_pc/

I called the shipping hub for the GameStop stores in my area, and an associate confirmed that gamer PC hardware is coming! That among some other cool details. Another associate from another store confirmed that streaming hardware will be coming first if not already in store, but actual internal components are scheduled when some stores get a new "face" it sounded like she said? I'm guessing the 1.5 tier stores will somehow reface themselves to indicate they are PC gaming oriented stores? Likely regional hubs I'd assume. They adopted a similar shipping and delivery model to Auto Zone and Advance Auto if I recall correctly. Sounds like a moon mission to me! 🚀🚀🚀🚀🚀

I have trimmed the front of the audio file to protect the associate, and beeped our specific location area. Yes I am aware my phone and poor editing skills make me sound 13, but before you shit on me let me ask did you call and post it today? 😎

File on MEGA

mega.nz

Edit: I'm going to trim and edit the audio from at least one other store. Two people noted "faces", but one of them also knew a little about hardware so I'll upload that as well.

Edit #2: Here is the 2nd recording. The reps audio was low, and I am not a sound engineer but I did my best.

File on MEGA

mega.nz

Edit #3: can people tweet this @RyanCohen to get some exposure. Of course he can't say much, but the silence will tell all. I'm not the social media type, RC is one of like 6 people I follow but this gaining traction could be huge.

I should also note, someone else posted this rumor. I simply put in a little effort. I did not crack this myself.

Legal note I apparently already need to make, I live in a one-party consent state for telecommunication recording and I will be removing all personal and specific local area references.

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https://www.reddit.com/r/wallstreetbets/comments/kypuyb/gme_dd_buildapc_kiosks_coming/

TLDR: Gamestop is fielding PC build kiosks at a number of stores, BUY GME SHARES ROCKETS OUTBOUND 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

Today I went into Gamestop with the intent of browsing around and using a $25 gift card I got for Christmas like a year ago. I have not been inside a physical GME store since at least 2018 when I bought an Xbox. I immediately noticed that they have a much wider variety of merchandise, everything from games to PC hardware to toys and clothing. So on that note I was looking to buy a new PC gaming headset since I noticed they "have" a ton of them. I grabbed one and went to check out. The manager informed me that they don't actually have them in stock or available to order- in fact, most of the items in the store were just display boxes for promotional purposes. I thought this was weird, but she explained that:

1- They sell in-store items so fast that if they didn't display empty boxes the store would look entirely empty. She gave an example of 200 packs of pokemon cards that sold out completely within 24 hours

2- They are reluctant to fill the store with generic items that don't move fast, because that store specifically, among "3-4 others in the state" are going to be totally redesigned to accommodate for what she described to me as "PC building stations". 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

3- They have been absolutely crushing it with sales and store interest due to COVID. She stated that people are buying things that she has never sold before, like niche Wii remotes and other items."

Now, we have speculated for some time that GME is going to pivot to PC parts and hardware. I noticed that they do stock some PC peripherals and a few components like graphics cards (older models, they had an NVIDIA 1660 in stock) and PSUs.

HOWEVER, I haven't seen or heard anything regarding a full-on build station. The way she described it to me, is that customers will be able to totally spec out a PC gaming rig, and have it shipped directly to their house. She said there will likely be a dedicated store employee there to assist customers and provide advice. THIS IS FUCKING HUGE. Currently, you have to be pretty "in-the-know" to spec out a gaming PC properly, and the pricing makes it unrealistic for a lot of gamers. On top of that, I think there is a perception that you need a lot more technical skill to get into PC gaming. What GME is doing will allow the PC gaming market to bust wide open and become more accessible for a lot more people. And finally, some sort of agreement or deal with the big manufacturers (as hinted) would make this even more lucrative!

She also said that there is a huge push from upper management for store employees to get knowledgeable on PC gaming and hardware- she said management is pushing hard for the company to step into the future. Meanwhile during the 30 minutes I was in the store, probably 10-15 customers came through and bought at least minor items. Keep in mind this is in a strip mall in a Midwestern rust belt town- certainly does not fit the "Next blockbuster!1!!!" thesis.

Personally I believe this is a very bullish move from Gamestop- and bodes well for the future on top of the other well-established information out there. GME is and continues to be an excellent value play, not even accounting for the upcoming short squeeze. It sounds like the vision from Cohen and others at the top is already filtering down to the people charged with carrying it out. I plan to buy at least 50 more shares on Tuesday.

Positions: 250 shares @22.30 cost avg, 2x 4/19/21 $30c, 2x 01/29/21 $50c

(Somebody on mobile add the rockets pls)

ETA69: Somebody showed me how to do the rockets 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀 LFG!!!

ETA420: DON'T GIVE ME GOLD, KEEP THAT MONEY AND FUCKING BUY GME SHARES

ETA from one of the commenters below, u/theodros1:

"Oh shiiitt. This is amazing. I called a bunch of my local gamestops and luckily got a very talkative sales guy. He says that Gamestop Stores will be either 1.0 or 1.5 stores. The 1.5 stores will be more "PC oriented" and will allow users to choose parts. He didn't confirm "PC building stations" but dropped an amazing tidbit. The changes started in OCTOBER.... what else happened in October? Ryan fucking Cohen. This is amazing news and hopefully we hear more about it soon in media/press release.

edit: oh shit... I called this other Gamestop and he said the "Cohen news hasn't materialized yet"... I said him being "CEO" and he grunted, I think affirmatively

edit 2: called another gamestop. Overheard them talking about "reset" of stores when I asked which store in area was 1.5

edit 3: Found a 1.5 station, he confirmed OP's post. There will be gamestop stores where we can build out our whole PC in store. Didn't have balls to ask about Cohen as CEO though lol"

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TLDR: Tier 1.5 Gamestops might be turning into PC-centric stores with "Build your own PC" stations. Apparently they've seen a surge in demand due to the pandemic, and they're pivoting to meet the demand.

IMO, it's a great idea. Right now, the only retail competition they'd have is Microcenter and Best Buy. They have thousands more locations than either of those stores, and it's not hard to outprice Best Buy (who's their only real competition IMO, given Microcenter only has a couple dozen stores across the US.)

 

[catpurrcat]

The margins on PC accessories must be ENORMOUS.

RGB fans, lights, coolers, cases, cables.

 

[ILikeFeet]

they're kinda small to stock pc hardware

 

[Deleted member 51691]

Lol was that Reddit post by a Gamestop plant

EDIT: I guess that's just how people on that subreddit post

 

[catpurrcat]

they're kinda small to stock pc hardware

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The model to follow is one found in S-E Asia, where smaller stores do well.

 

[JLP101]

If this is true, I find it funny that gamestop went PC/Console to Console exclusive back to PC/Console. Life is a full circle.

 

[RoboitoAM]

Maybe I'd actually go to Gamestop again

 

[Meg Cherry]

It'd make a lot of sense. There's only so much physical product left to sell in gaming, and the PC market is rich with physical products.

 

[Dolce]

Well, those definitely aren't going to open in my area.

 

[bing]

Well, those definitely aren't going to open in my area.

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Tier 1.5 stores would be remodeled to be PC-centric. You probably already have a couple of those stores in your area.

 

[Sinatar]

The irony being that Gamestop's huge push towards selling used console games caused them to severely reduce PC game shelf space and saw a heavy decline in PC gaming in the Early 2000's (in North America) until Steam came around.

 

[RestEerie]

Some people on the "Wall Street Bets"

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GUH........

 

[ILikeFeet]

The model to follow is one found in S-E Asia, where smaller stores do well.

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well, my dumb american brain only thinks of Microcenter when I think of PC stores. then again, these stores stock a lot of shit than just DIY stuff

 

[Avitus]

Unironically posting r/wallstreetbets stuff, when that whole sub is trying to pump Gamestop stock.

I've seen it all.

 

[Greent4]

dont believe the wsb pump and dumb
Bold if true about shifting to pc kiosks though.

 

[tiebreaker]

from wsb, seriously?

Business are booming so we are closing stores.

 

[nsilvias]

There stores are too small to hold pc hardware

 

[wwm0nkey]

My Gamestop has been getting a good amount of PC stuff in so I could see this being a possibility

 

[bsigg]

Ahh so it's GameStop who has been snapping up all the 3080s/3090s so they can sell them when they make this change.

 

[Netherscourge]

If they get into trade-ins for used PC hardware and sell pre-owned PC hardware, I'd go back in a second.

I'd much rather buy a used GPU at Gamestop than from someone online. Especially if they have a limited warranty.

And if they take trade-ins for older GPUs toward credit for a new GPU, even better.

 

[The Lord of Cereal]

I mean on one hand, it's something that would definitely allow Gamestop to not only stay relevant but to grow even, so it seems like a pretty smart and intelligent move.

On the other hand, Gamestop corporate hasn't exactly been known to be smart about business decisions and sustainability so...

 

[Damaniel]

I've learned one thing from the WSB subreddit - if they say something is going to happen, it absolutely isn't going to happen.

Even if it did, they'd have to have Microcenter levels of selection to make me interested - a couple brands of mechanical keyboard and a couple overpriced cases aren't going to be enough to make it worth the trip.

 

[Fudgey_Lumpkins]

they're kinda small to stock pc hardware

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All they need to do is have popular/common items on hand and special order everything else. They'll need to improve their logistics though. At the moment, anything you special order in-store you have to pay shipping for. They need to offer a free ship-to-store option.

 

[texhnolyze]

they're kinda small to stock pc hardware

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The model to follow is one found in S-E Asia, where smaller stores do well.

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Yup. That's exactly how PC stores look and operate here in Indonesia. There are a bunch of "electronic malls" with small stores/tenants inside.

I've been PC gaming all my life, but I never once had to build my own PC. I can simply go to my preferred PC store, make a list of my preferred PC parts to see if they have them, consult with them, and let them build the PC for me. Then I go home, I can either pick it up in a day or two, or let them bring it directly to my home for a fee.

 

[StopMakingSense]

lol posting WSB rumors.

 

[BasilZero]

They sell you old/used games as new, I cant imagine buying PC accessories or hardware from them....

 

[InfinitePotat0]

I noticed that the other day. Try had a display with a bunch of PC components. Still no point to buy from them when I have a micro center 15 minutes away from me.

 

[xir]

The margins on PC accessories must be ENORMOUS.

RGB fans, lights, coolers, cases, cables.

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i think there was a company that sold RGB ram first and it was like an extra 10, maybe 20$ and like 95% of that was profit

 

[WillyFive]

I'd go for them for that. There exists nothing like it nearby.

 

[Garrison]

Time to bring back big box PC Games.

 

[Einbroch]

r/wallstreetbets

nuff said

 

[TripleBee]

There's a logic to it. No margin on console hardware. Games all going digital.

PC hardware meanwhile has good margins - and they would also provide upsells for warranties/installs etc..

Downside is they would need a more knowledgable staff.

 

[night814]

Didn't Microsoft buy into gamestop a bit at some point in the last year to partner with them? I wonder if this is related

 

[Rygar 8Bit]

they're kinda small to stock pc hardware

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They used to back in the late 90's. Least one of the stores they bought out and merged did. Software ETC. used to sell pc parts mostly sound cards and graphics cards.

 

[Negatorous]

I remember back in the 90's this guy by my house had a PC gaming store where he also rented PC games. These were games mostly on 3.5 disks, his store burned down right when CD-ROM games started to become popular. But I can't even tell you how many of those games I played back then. I loved his store, tons of games and cool hardware to check out. He also sold PC games and console games. Store was pretty packed with people. I'd love to go back to those simpler days...

 

[gdt]

I think it's a good idea. Go for, why not

 

[Sexy Fish]

Be smart. Lot more people streaming as a hobby too. Can have little starter bundles to sell among other accessories.

 

[David Addison]

Remember when Gamestop agreed to sell Valve hardware, and it was treated as a PARADIGM SHIFT, and it turned out that...no one cared? Or when GameStop rolled out sexy steelbook releases of PC indie games and...no one cared?

All they need to do is have popular/common items on hand and special order everything else.

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Yes, of course! They are totally somehow going to "special order" the Ryzen CPUs and 30x0 cards unobtainable at the biggest retail chains in the US. That is exactly what will happen.

 

[TechMetalRules]

I'll take with a big grain of salt, but this is certainly interesting.

It seems like the one in my town already made the pivot to becoming a toy store.

 

[BobLoblaw]

A bunch of mini-Micro Centers. Hmm... Well, that would at least give me a reason to go to one.

 

[gully state]

Imagine if they dabbled in buying/selling used PC components....There's a lot of custom peripherals with high profit margins as well.

 

[squall23]

There stores are too small to hold pc hardware

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This is what a branch computer store in Hong Kong looks like. It's literally just a wall of on-display laptops and a guy that you talk to about building a PC and/or buying parts.

 

[Fudgey_Lumpkins]

Yes, of course! They are totally somehow going to "special order" the Ryzen CPUs and 30x0 cards unobtainable at the biggest retail chains in the US. That is exactly what will happen.

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Special Order as in, items that the company has in their distribution centers but not in store due to lack of space or sales volume. This is not a foreign concept. Additionally, if it is an item that they do not have in stock, then the customer wouldn't be able to order it in store. This is how it works now with GameStop's "Web-in-Store" system. I never suggested that they could pull unobtainable items out of thin air.

 

[Deleted member 198]

I can't believe I fucking sold my shares that were like $6 when I was desperate for money during the initial lockdown phase, fuck.

 

[PlayBee]

If GameStop sold PC parts I might actually walk into one again some day

 

[Zelda]

Can't wait to trade in my used 1070 for $.34

 

[Iron Eddie]

They need to pivot, Amazon and Walmart have become too competitive with them and both Sony and Microsoft are now getting involved with selling their hardware. The future also does not look good for retail when half your audience is buying digital. Then you have sources like Youtube for walkthroughs and setup tutorials, so what kind of personal service do people care about anymore?

 

[Arthands]

Got to say that might be a right move, considering the drastic upswing of PC gaming in recent years, game streaming, and the trend of people having to work from home nowadays so more people's going to need a laptop or a pc at home.

they will need to provide assembly service as incentives for people to come in though. Not everyone has the time or knowledge to build a pc.

 

[kenta]

Would be cool to see them go full circle like this -- there was a GameStop near me that had a PC set up and it's where my buddy and I first played a bunch of UT99 after being Quake diehards for years. Doubt we would have tried it if not for that, but we converted to UT diehards right quick after that

A little skeptical about prices being competitive but good luck to them nonetheless

 

[Polyh3dron]

There's no way they would actually do this in a way that would make me want to set foot in one of their stores. They will find a way to make it bad, like their aggressive warranty upsells, aggressive MadCatz peripheral hocking, selling opened and used merchandise as new, or whatever repulsive awful scheme du jour they have done in the past because the simple act of selling games and consoles wasn't enough for them. That being said, it's a largely untapped market these days, there aren't very many Microcenters in the US, and Fry's Electronics has been godawful for decades.

Not sure doing a gaming-centric PC hardware brick-and-mortar store the proper way to the point where it could actually expand the PC gaming scene by making their stores into desirable destinations for people interested in PC hardware is something GameStop is truly interested in doing though. They always just want the quick buck.

FUN FACT: The first add-in graphics card I ever purchased for a PC was a 3DFX Voodoo 2 that I purchased at an Electronics Boutique store, which later became GameStop.