Want to link this here because I learned a bunch of things I had no idea from this dudes channel. Apparently he's gotten so much attention GameStop are going after him now.
is Gamestop really in trouble, and how can it recover?
- Thread starter fireflame
- Start date
Why post this?
Physical isn't going to die in the upcoming generation.
They are closing stores as we speak. They apparently are not carrying a deficit.
Hell even toys r us is coming back and focusing on a smaller store.
Don't cash in your gift cards just yet people. Ride it out.
I like GameStop due to the fact for the cool shit you get when preordering certain games and the night launch events too.
It just sucks the closest store by me upped and vanished back in 2016 and now I have to drive to another county for a nearby location.
It just sucks the closest store by me upped and vanished back in 2016 and now I have to drive to another county for a nearby location.
It's because otherwise they'd make no money. Video games are basically bought and sold at cost, they make little to no profit on them. Stores like Walmart and Target make profit on other products, but GameStop sells nothing but video games (and now related products). It's a dead business model.
Honestly, the hard pivot into games and pop culture merch was probably the best play they had available, and it just wasn't enough. You're just not going to revive the fortunes of physical media, and the store spaces they own are too small to repurpose around much else besides retail. You couldn't really start running tournaments or board game nights or small arcades out of them, which would otherwise be an avenue to pursue. They're kinda just fucked.
The fucking Family Video near me sells CBD oil now. They got a fucking wall decal of Barney the Dinosaur right next to a CBD sign.
I laugh my ass off every time I drive by.
I don't know what can save them, but I avoid them since everything is usually 10 euros more than every other shop (at least in Ireland) and every time I pre-ordered something they didn't really have all the copies they needed (at least in Italy).
For me it's pretty much a merchandise shop for when it's a geek friend's birthday.
For me it's pretty much a merchandise shop for when it's a geek friend's birthday.
The one by us did too, though the finally announced that they're closing.
Take videos like this as a grain of salt. This dude goes over the top on most of his commentary and GameStop isn't after him, lol. He's likely not even on their general radar. He claims they are, but don't buy into it.
Maybe they could cool it with the extremely toxic upsell strategy they base their whole store culture on. No, I don't want to renew my membership. No, I don't want the warranty on this disc. No, I don't want to pre-order anything.
The last part especially. It doesn't matter if I'm in the middle of saying "No, I don't want to pre-", they will whip out that obnoxious binder and open it in front of me, which means I gotta pretend to gaze at the catalog for a few seconds before reiterating that no, I don't want to pre-order another game today.
I can't stand that binder.
The last part especially. It doesn't matter if I'm in the middle of saying "No, I don't want to pre-", they will whip out that obnoxious binder and open it in front of me, which means I gotta pretend to gaze at the catalog for a few seconds before reiterating that no, I don't want to pre-order another game today.
I can't stand that binder.
I think retail games will survive for at least a while, but most people buy retail games through Amazon or an equivalent online retailer. While a decrease in retail games sales is definitely hurting GS, I can't help but think a lot of their decline is self-inflicted.
As someone with social anxiety, Gamestop is a place that often makes me genuinely uncomfortable. Because employees are judged so heavily on memberships and pre orders, I've had employees question me pretty aggressively when I tell then I'm not interested in New Game X or a Game Informer sub. I've also had employees watch me like a hawk while browsing or asking me if I actually intend to buy anything while checking out a demo kiosk.
I have absolutely no issues buying physical games, but if they're to survive, they need to drastically alter their structure, because as it is, I'd much rather just buy a physical game with prime shipping than dealing with someone hounding me the second I enter the store.
As someone with social anxiety, Gamestop is a place that often makes me genuinely uncomfortable. Because employees are judged so heavily on memberships and pre orders, I've had employees question me pretty aggressively when I tell then I'm not interested in New Game X or a Game Informer sub. I've also had employees watch me like a hawk while browsing or asking me if I actually intend to buy anything while checking out a demo kiosk.
I have absolutely no issues buying physical games, but if they're to survive, they need to drastically alter their structure, because as it is, I'd much rather just buy a physical game with prime shipping than dealing with someone hounding me the second I enter the store.
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I think specialist game retailers have done a very bad job at specialising in games retail. Every Gamestop thread reads exactly like GAME in the UK to me, so they clearly share the same problems as being the default games retailer and yet having no idea how to leverage that.
I know it's not an exact 1:1 comparison, but record stores don't succeed by only stocking the latest chart releases or upselling you on services and aftercare. People go into record shops because it's fun to browse the collections, see what rare or interesting finds you can gather, talk with knowledgeable and likeminded collectors etc. You should be able to walk into a game store and find years worth of games, not just the latest TV show Funko Pops or this weeks Collectors Editions to upsell. Independent game stores often have the right ideas but not the financial clout to make it work.
They need to streamline the number of stores they run and stop catering primarily to passing/casual trade. Gamestop and GAME should be as specialist as something like Games Workshop is to the table top community, or as mentioned record stores have become recently.
I know it's not an exact 1:1 comparison, but record stores don't succeed by only stocking the latest chart releases or upselling you on services and aftercare. People go into record shops because it's fun to browse the collections, see what rare or interesting finds you can gather, talk with knowledgeable and likeminded collectors etc. You should be able to walk into a game store and find years worth of games, not just the latest TV show Funko Pops or this weeks Collectors Editions to upsell. Independent game stores often have the right ideas but not the financial clout to make it work.
They need to streamline the number of stores they run and stop catering primarily to passing/casual trade. Gamestop and GAME should be as specialist as something like Games Workshop is to the table top community, or as mentioned record stores have become recently.
They could definitely start by closing stores that are really close to others. Earlier this month, I was in an area that had 3 GameStops within a few miles of each other. Like I get some of them used to be EB Games before the buyout, but why still keep them open or open others that are really close to the EB locations?
Maybe they could start price-matching too (not just during the holidays)? Walmart seems to be getting pretty competitive with some of their game prices lately. Crash Team Racing was around $33 in stores when it came out a few days ago. Pretty sure Rage 2 was around $49 in stores when it came out last month too.
Maybe they could start price-matching too (not just during the holidays)? Walmart seems to be getting pretty competitive with some of their game prices lately. Crash Team Racing was around $33 in stores when it came out a few days ago. Pretty sure Rage 2 was around $49 in stores when it came out last month too.
Eh, my recommended page now has a bunch of similar stories I've seen so I think there's a lot of truth to what this dude is saying. Sounds like it's a shit company to work for that takes advantage of the customer and their low level employees. The sooner they're gone the better.
need more incentive to shop there. If they had a 20% off GCU type promotion, it'd give me a reason to go, else Best Buy (GCU), Target (B2G1), Amazon (great price drops) and digital gets my $
I stopped going to GameStop because they rarely have stock unless you have preordered the game or the game is super popular, they try to sell opened games as New, and their online shipping fees are more expensive than other retailers. So I guess just reverse all of that.
I even had an experience years ago where I preordered a game and they already opened it. I told them I'm not buying it and then guy was all "Well this was the only copy we got in" (I think it was a BlazBlue game) and I told him I wanted my $5 deposit back and walked out.
The only physical retailers I go to buy games are Best Buy and Target. Otherwise I primarily get all my physical games from Best Buy online.
I even had an experience years ago where I preordered a game and they already opened it. I told them I'm not buying it and then guy was all "Well this was the only copy we got in" (I think it was a BlazBlue game) and I told him I wanted my $5 deposit back and walked out.
The only physical retailers I go to buy games are Best Buy and Target. Otherwise I primarily get all my physical games from Best Buy online.
You can say that about many retail stores. It is not a gamestop only issue
If they do go, I will miss how I used to purchase upcoming gaming consoles. I pretty much have used GameStop as almost like a layaway system. Pre-ordering the console before launch, every month adding more money to my preorder, so that when launch day comes I walk out with the new playstation or xbox either paid off or for a small amount. No waiting in lines, no huge all at once purchase.
And that's the issue, they've based the health of the company on upselling shit people don't really want and put pressure on the employees to basically lie to do it.
GameStop just seems like its run by a bunch of old white dudes who have no idea how to adapt to the changing market and when that happens, you get left behind. ¯\_(ツ)_/¯
True but GameStop isn't just an ordinary retail store, the way it's operated and the way the employees deal with customers is on a completely different level compared to a Target or Best Buy.
It is essentially a kid friendly pawn shop.
GameStop has been fundamentally fucked up since the beginning. They never actually catered to gaming enthusiasts. They were popular only because they had a monopoly on buying/selling used games/consoles and took advantage of the more main stream fan base.
When the more mainstream fan base started moving to online retailers GameStop freaked out and completely tanked their own monopoly on the market by fucking up prices trying to hold onto profit they didn't deserve.
Now they have nothing, it's their own damn fault, and their getting punished for it.
They need to downsize majorly, revamp their used market strategy and start catering to the enthusiast market like they were 30 years ago.
Like we're do I go to buy a used physical copy of republic commando for the OG Xbox? The answer should be GameStop but hellll no that ain't the answer right now
If you went into a GameStop anytime in the last 10 years and asked for an old but good niche title they wouldn't know what you were talking about
When the more mainstream fan base started moving to online retailers GameStop freaked out and completely tanked their own monopoly on the market by fucking up prices trying to hold onto profit they didn't deserve.
Now they have nothing, it's their own damn fault, and their getting punished for it.
They need to downsize majorly, revamp their used market strategy and start catering to the enthusiast market like they were 30 years ago.
Like we're do I go to buy a used physical copy of republic commando for the OG Xbox? The answer should be GameStop but hellll no that ain't the answer right now
If you went into a GameStop anytime in the last 10 years and asked for an old but good niche title they wouldn't know what you were talking about
I was going to say a physical subscription service but even Redbox has them beat on that. They've slept too long on innovation to really recover.
This so much. I can't get over how hard this video store is pushing quackery. Shit has more displays than popcorn.
As for gamestop I would think that years of feedback would have hinted at people not enjoying constant upselling from the moment you walk in the door. I never feel relaxed or comfortable when I walk into a gamestop. Just constant pressure. Even when checking out, the fuckery never ends. Work on making gamestop a fun place to be. If I don't feel joy from being in your store, I will order my games online. Simple as that and really, creating a cool atmosphere is about all these brick and mortar stores have left. Also, they could work on making classic games and consoles convenient. Right now they offer nothing that I can't easily have delivered to my home. They shrugged off old media which was entirely physical just to embrace new media that is easily available through digital downloads. Well played gamestop.
Even if they do go back and start selling older stuff, they absolutely have to increase their care for these things. Stop throwing out cases and manuals. Quit putting stickers on my boxes. I'm buying physical media because I enjoy these aspects of my collection. When you treat it like shit before it even gets in my hands, how do you expect me to feel good about my purchase? It makes no sense to treat your own products like disposable garbage and yet they do.
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Oh, no, that's entirely accurate -- but you have to take into account that most stories that are personal and lean negative in situations like this are almost always exacerbated for effect. Not to mention, it's somewhat of a niche trend on YouTube that gets a lot of play, so a lot of people lean into it much harder. YouTube's algorithm props content like this up a lot.
But I can almost guarantee the majority of it is either factually inaccurate or exacerbated. Most of it is conjecture too. For instance, the YouTuber you're referencing thinks that GameStop managers moving from salary to hourly to avoid the OT laws that never came to pass is one of the reasons for GameStop's decline -- it's not even related, lol.
100%. The problem in this space is most of the people in positions of power in both of these companies view their business as a "retail store," not a "specialty game's retail" store -- which is completely different. You can't view your business the same way a big box retailer does -- they may both be in retail, but that's where the similarities really end.
Gamestop can't recover to their late 90s/early 2000s explosive growth. They're over-extended and under-capitalized, and the market has changed. THey can continue to exist as a company but need to dramatically downsize and focus on markets that are underserved by digital services and/or big-box retail. Having 5 Gamestops within a 10mile radius, the majority of which are in suburban shopping centers, makes no sense as a business model because they're competing with retail companies like Best Buy and Target (which are better capitalized) AND online storefronts like Amazon.
Gamestop can remain in business by scaling down and focusing in rural/less connected areas and urban areas where digital services aren't as widely adopted. They've smartly gone into collectibles and unique retail items that aren't usually sold at Best Buy or Target, they might not make a lot of money on these items, but they're not bad to have to get people in the door because it's something that differentiates them. Gamestop could continue to go in that direction and look to buy hobbyist stores or sports memorabilia stores, to combine into a broad enthusiast market, but not necessarily around videogames. At that point, it probably wouldn't be known as Gamestop.
Most of the stores are also poorly run, with bad management, poorly trained employees, and a major quality gap. I've only shopped at GameStop like ... three times in the last 10 years, and every experience has been terrible, but with two of those shopping experiences I had no other option. I only go to GameStop when I have no other option, and increasingly, there are just better options available for me whether it's online or big box store retail.
Yes, exactly this.
Gamestop can remain in business by scaling down and focusing in rural/less connected areas and urban areas where digital services aren't as widely adopted. They've smartly gone into collectibles and unique retail items that aren't usually sold at Best Buy or Target, they might not make a lot of money on these items, but they're not bad to have to get people in the door because it's something that differentiates them. Gamestop could continue to go in that direction and look to buy hobbyist stores or sports memorabilia stores, to combine into a broad enthusiast market, but not necessarily around videogames. At that point, it probably wouldn't be known as Gamestop.
Most of the stores are also poorly run, with bad management, poorly trained employees, and a major quality gap. I've only shopped at GameStop like ... three times in the last 10 years, and every experience has been terrible, but with two of those shopping experiences I had no other option. I only go to GameStop when I have no other option, and increasingly, there are just better options available for me whether it's online or big box store retail.
Yes, exactly this.
I forgot, but did Gamestop ever consider renting their games as a competitor to Redbox or Gamefly?
That's what the family video's near me do now lol.
But some general things:
Sell retro games and consoles again, but dont make it online. Keep it a store to store basis, if certain games struggle in certain locations send them to different stores until they sell.
Stop pushing pre-orders at checkout and having employees push them. It's annoying and I strictly dont like going to Gamestop for this reason alone. Along with other people. Let us walk in and pickup/buy a game without the annoyance of the pushy aggressiveness of employees that have ridiculous sale quotas they need to attain.
Pay your employees more or have more people working full time. I prefer to support local mom and pop game trade in businesses in my area because they treat their employees better. All it takes is really asking employees how they are treated to hear a whirlwind of the problems facing the stores.
Reduce the amount of clothing dramatically, but cycle through it more. Start selling shorter batches, improve the quality with softer fabrics that are labeled as such, and get licenses for shirts for before or during the week a game releases.
Have managers host monthly local tournaments for different games. Make Gamestop a place people want to hangout at on occasion and build local communities build a relationship with the stores, by playing games, and being in a store playing games with people who enjoy the same games as them.
They'll have to shrink to a niche. They needed to take risks and invest in digital either via storefront or streaming or both. They might still be able to become a bigger publisher.
Here in Germany they are way too expensive and they are treating games like shit. Their stores are very small and the shopping experience is really bad.
Buying used games online makes much more sense. It's cheaper and some websites like Rebuy even offer a 18 -month-warranty for used game consoles.
Buying used games online makes much more sense. It's cheaper and some websites like Rebuy even offer a 18 -month-warranty for used game consoles.
I remember buying ffxiv for ps3, and the employee was annoyed because I was a regular that barely pre-order games. Come the fuck on son.
Another time was when I traded in a scratched copy of 3d world towards a working one. The clerk tried to sneak a warrenty on my receipt, and when I told her to take it off, she immediately adds the refurb fee. lol why wasnt it there from the start? that's some shady shit boy!
I just go to Amazon and Best Buy. You cancel a pre-order without an unpleasant experience.
Another time was when I traded in a scratched copy of 3d world towards a working one. The clerk tried to sneak a warrenty on my receipt, and when I told her to take it off, she immediately adds the refurb fee. lol why wasnt it there from the start? that's some shady shit boy!
I just go to Amazon and Best Buy. You cancel a pre-order without an unpleasant experience.
Best Buy recovered and frankly they have better pricing and selection than Amazon these days .
Gamestops problem is they've become the sweaty and nerdy HMV or Spencer's gifts that sell video games and smell like body odor . I'm physically repulsed from the stores. And If I want to shop in a brick and mortar store, I go to Best Buy
Gamestops problem is they've become the sweaty and nerdy HMV or Spencer's gifts that sell video games and smell like body odor . I'm physically repulsed from the stores. And If I want to shop in a brick and mortar store, I go to Best Buy
I worked there years ago for quite awhile during college and had the unfortunate privilege of gaining a management role. Also a large part of the reason I never shop there again.
Let it die. The gaming industry will be better off for it.
Let it die. The gaming industry will be better off for it.
Heh, my experience too.
I go to the counter.
1. Do you have an edge card?
2. Do you want to sign up? You get x y and z.
3. Would you like disc protection?
4. Are you sure? In case your game doesn't work you can exchange it.
I just go to Walmart, pay, and peace out. Only reason I'll go to ebgames is if I am in the same plaza and want to get something.
Are they in trouble? Oh, absolutely. Gamestop is living in a bubble of illusion. They think it's still 1999, and they haven't paid attention to what's going on around them.
Twenty years ago, if you wanted a game, and wanted to make sure you got your hands on it, Gamestop was the only way to go. You had to go into a store to pre-order, and have over $5 to demonstrate your level of commitment to wanting that game. And picking it up at midnight was a truly awful experience. God forbid you wanted to make an online order, where shipping/handling costs were expensive just for regular delivery. If you wanted to make sure you had the game delivered on release day, you'd often pay 1/3 to 1/2 of the game's price just to cover delivery fees.
Meanwhile, Amazon has evolved their video game deliveries to make sure people get games on launch day, and release day shipping is just a default for Prime members. Best Buy offers discount/gift card incentives on a LOT of pre-orders, as well as reward gift cards after a few purchases. Target Red Card holders get 5% back on their purchase. You can price match at other every other retailer,
And Gamestop does none of those things.
They still think they're the biggest people in the market, and they're not. They still think they're the "experts" in the video game realm, and frankly, they never were. They think they cater to gamers when in fact, we've collectively had so many bad experiences with their customer service 'experts'. Their online model of selling games is a true headache.
They've actively worked to push people away by being customer-unfriendly, and passively worked to drive people away by being a terrible customer experience when compared against every other retailer.
And that's to say nothing of their business as a pre-owned retailer, which is a problem in its own front.
As for how they recover? They need to be competitive. They need to get over their belief that they still have a space against the Targets, Best Buys, Amazons, eBays, and Walmarts of the world just because they were there first. It's time for them to start looking at better reward programs, better incentives.
They need to get rid of the bajillion toys and trinkets that clutter up their store, and REALLY focus on a single market of video games.
Whether they like it or not, they need to price match. They need better Customer Service practices, and a better loyalty program. They need to find some way of making shipping cost-effective, and really update their online infrastructure to make them a better eRetailer.
They need to update to become a 21st century company that's fully aware of what's happening around them. Otherwise, they deserve to die.
Twenty years ago, if you wanted a game, and wanted to make sure you got your hands on it, Gamestop was the only way to go. You had to go into a store to pre-order, and have over $5 to demonstrate your level of commitment to wanting that game. And picking it up at midnight was a truly awful experience. God forbid you wanted to make an online order, where shipping/handling costs were expensive just for regular delivery. If you wanted to make sure you had the game delivered on release day, you'd often pay 1/3 to 1/2 of the game's price just to cover delivery fees.
Meanwhile, Amazon has evolved their video game deliveries to make sure people get games on launch day, and release day shipping is just a default for Prime members. Best Buy offers discount/gift card incentives on a LOT of pre-orders, as well as reward gift cards after a few purchases. Target Red Card holders get 5% back on their purchase. You can price match at other every other retailer,
And Gamestop does none of those things.
They still think they're the biggest people in the market, and they're not. They still think they're the "experts" in the video game realm, and frankly, they never were. They think they cater to gamers when in fact, we've collectively had so many bad experiences with their customer service 'experts'. Their online model of selling games is a true headache.
They've actively worked to push people away by being customer-unfriendly, and passively worked to drive people away by being a terrible customer experience when compared against every other retailer.
And that's to say nothing of their business as a pre-owned retailer, which is a problem in its own front.
As for how they recover? They need to be competitive. They need to get over their belief that they still have a space against the Targets, Best Buys, Amazons, eBays, and Walmarts of the world just because they were there first. It's time for them to start looking at better reward programs, better incentives.
They need to get rid of the bajillion toys and trinkets that clutter up their store, and REALLY focus on a single market of video games.
Whether they like it or not, they need to price match. They need better Customer Service practices, and a better loyalty program. They need to find some way of making shipping cost-effective, and really update their online infrastructure to make them a better eRetailer.
They need to update to become a 21st century company that's fully aware of what's happening around them. Otherwise, they deserve to die.
They were considering this membership promotion where you pay $60/year and you can "rent" one preowned game and keep it has long as you like. You can exchange it to a different game as many times as you like within a year.
I would be down with that.
Here's a thing. My gamestop is across the street from Wal-Mart. I can buy a brand new switch game at gamestop for 59.99 or I can go to Wal-Mart and get the same thing for 49.95. I don't know how there doing it. Or for how long there going to be doing it. But they are doin it. How does gamestop compete? They can't afford to.
I personally don't think the funko/collectible shift was a terrible move for them (if they manage inventory well), especially with the death of TRU. Even Target/Walmart are getting into that area so it's clearly something that gets eyes in stores. Now, general organization of stores is an entirely different thing.
I do question how there's not a better way in 2019 to display games. It's because of the way they display games that they need to open "new" copies. Also, it's not like it's easy to browse their game inventory anyway, in fact, it's almost impossible in every gamestop I've been in to find anything older than a month on the shelf.
I do think they just have to last until the next generation starts to get a boost and maybe even investor interest. But whether they can make it there is up in the air.
I do question how there's not a better way in 2019 to display games. It's because of the way they display games that they need to open "new" copies. Also, it's not like it's easy to browse their game inventory anyway, in fact, it's almost impossible in every gamestop I've been in to find anything older than a month on the shelf.
I do think they just have to last until the next generation starts to get a boost and maybe even investor interest. But whether they can make it there is up in the air.
They have waaaaaaaay too many stores. I feel there are almost as many Gamestops around me as there are Starbucks and McDs. I have no idea how that ever happened to begin with?! (Edit - just did a googlemaps search. Typed Gamestop and it zoomed out a bit and gave me 8 locations; Starbucks = 15; McDs = 20. So not quite as bad as I thought, but still a ridiculous amount imo. How the hell do that many hobby stores stay in business even in good times?)
I guess I never went to Gamestop much anyway and wouldn't miss them. I did go recently to look for some old DS games. Half the store is toys and "collectible" tchotchke garbage. I guess I could shop there for used games, but not new games or the rest of the stuff they sell.
I guess I never went to Gamestop much anyway and wouldn't miss them. I did go recently to look for some old DS games. Half the store is toys and "collectible" tchotchke garbage. I guess I could shop there for used games, but not new games or the rest of the stuff they sell.
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Gamestop needs to make their own videogame console and sell games for it digitally.
Physical media won't exist much longer and the resale stuff that's out there will eventually degrade and become unplayable.
Physical media won't exist much longer and the resale stuff that's out there will eventually degrade and become unplayable.
Once my GCU runs out in March, it's between Best Buy and Gamestop for whoever has the best deal, though I'll likely still lean towards Best Buy because of their rewards program.
No need to wait "7 to 10 days" for a package from Amazon when local retailers offer instant gratification.
No need to wait "7 to 10 days" for a package from Amazon when local retailers offer instant gratification.