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Kotaku: GameStop Lays Off Over 100 People, Including Nearly Half Of Game Informer's Staff

Xavi

Xavi

Member
Oct 27, 2017
14,769
Lightning for Smash
Continuing the terrible news bout Game Informer's layoffs, Jason has published an article expanding on it.




The struggling retail chain GameStop laid off over a hundred employees today, both at its corporate headquarters in Grapevine, Texas and at other offices including its subsidiary Game Informer magazine in Minnesota, where nearly half of the editorial staff lost their jobs in a surprise cut.
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This news comes just a few weeks after GameStop laid off dozens of regional managers, following a brutal year that saw the company try (and then stop trying) to sell itself. GameStop's stock has plummeted over the past few years as the retailer continues to struggle to stay afloat in a world where digital distribution has grown to dominate gaming.
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EDIT:

GameStop statement regarding today's layoffs:

As part of the previously announced GameStop Reboot initiative to transform our business for the future and improve our financial performance, we can confirm a workforce reduction was implemented impacting more than 120 corporate staff positions, representing approximately 14% of our total associate base at our company headquarters as well as at some other offices. While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors. We recognize that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition.
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Source:
 
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Mbolibombo

Mbolibombo

Member
Oct 29, 2017
7,043
Despite the hate Gamestop gets... I dont think the gaming industry is better off without them.
 
wenis

wenis

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Oct 25, 2017
16,100
the slow and inevitable death of Gamestop. I hope those affected land on their feet.
 
OneBadMutha

OneBadMutha

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Nov 2, 2017
6,059
If GameStop survives, it's as a shell of the business it is today. I don't think they make it 3 years without a major shakeup. New consoles might buy them a year.
 
KoopaSwitch

KoopaSwitch

Banned
Jan 17, 2018
1,260
Yep, they might not last till the next gen unless someone decides to buy the skeletons of them.

Used games sale are going down because digital is rapidly increasing. Aside from major releases, get ready to pay 2-5x more for "physical" releases in small prints. Retailers can just stock digital download codes. No worry about theft!
 
Catvoca

Catvoca

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Oct 25, 2017
4,182
Seen quite a few GI people I follow were hit with layoffs, including Imran Khan. Shit sucks.
 
-Le Monde-

-Le Monde-

Avenger
Dec 8, 2017
12,613
Really sad. I haven't been to a GS store in a while, but it's going to be sad if it dies.

Don't even want to think what it means for physical games.
 

Deleted member 23212

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Oct 28, 2017
11,225
KoopaSwitch said:
Yep, they might not last till the next gen unless someone decides to buy the skeletons of them.

Used games sale are going down because digital is rapidly increasing. Aside from major releases, get ready to pay 2-5x more for "physical" releases in small prints. Retailers can just stock digital download codes. No worry about theft!
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I don't think retailers see it that way, I think they see digital as a threat since many will just bypass them altogether and pay directly via the digital storefront.
 
bytesized

bytesized

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Oct 27, 2017
5,882
Amsterdam
Giant Beastcast was talking about the future of gameinformer just a few days ago, I wonder if they had heard any rumours or if it's just coincidence.
 
PlanetSmasher

PlanetSmasher

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Oct 25, 2017
115,469
Gonna be a fucked up time when the only place at retail where you can get games is Best Buy. Especially with how hard it is to find a good Best Buy with a good stock of games in major cities. Fuck.
 
TheMrPliskin

TheMrPliskin

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Oct 26, 2017
3,564
Feels like we'll see a similar headline again within the next few months. Hopefully everybody affected is able to land on their feet quickly.
 
Khamsinvera

Khamsinvera

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Oct 31, 2017
1,580
DrArchon said:
At this point it seems to be more a question of months than years.
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Look at these numbers - they're dead VERY SOON

q2Vedoi.png
 
OP
OP
Xavi

Xavi

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Oct 27, 2017
14,769
Lightning for Smash
GameStop statement regarding today's layoffs:

As part of the previously announced GameStop Reboot initiative to transform our business for the future and improve our financial performance, we can confirm a workforce reduction was implemented impacting more than 120 corporate staff positions, representing approximately 14% of our total associate base at our company headquarters as well as at some other offices. While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors. We recognize that this is a difficult day for our company and particularly for those associates impacted. We appreciate their dedication and service to GameStop and are committed to supporting them during this time of transition.
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From Gamasutra

 
Kittenz

Kittenz

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Oct 28, 2017
3,156
Minneapolis
Brick and mortar is tough in ANY business but especially video games in this age. And GI was dependent on Game Stop. Sucks because it's my hometown crew and there are so few gaming outlets outside of the hubs. But it was inevitable. Makes it that much tougher because some of them (most?) laid off are based here in Minneapolis.
 
Eoin

Eoin

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Oct 27, 2017
7,103
Sampson said:
How much longer do they survive?

Over/under 5 years?
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They might last for a long time in some extremely reduced form, like maybe with a few stores limping along and the rest of the company's presence being vending machines sitting in corners of more general stores.

Their current form of thousands of staffed retail outlets has less than five years to go though.
 
Nanashrew

Nanashrew

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Oct 25, 2017
6,328
Mbolibombo said:
Despite the hate Gamestop gets... I dont think the gaming industry is better off without them.
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They make up the majority of physical video game sales whether people like it or not. It's not gonna be great when they go under. Best Buy, Wal-Mart, ect, are not going to stock most everything that Gamestop stocks. Amazon may get more stuff but Amazon sucks so bad, especially when they start bullying companies and prevent the company they're bullying from selling stuff on their platform as they have done before with both Sony and Nintendo a number of times.
 
Bane

Bane

The Fallen
Oct 27, 2017
5,904
OneBadMutha said:
If GameStop survives, it's as a shell of the business it is today. I don't think they make it 3 years without a major shakeup. New consoles might buy them a year.
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I wonder if it might actually get worse next gen. I'm a physical buyer but am heavily considering going all digital for all but Nintendo next gen. Th is purely anecdotal obviously but I wonder if there are enough thinking of doing the same where we see a big jump in digital with the next consoles.
 
Video Games Are Dumb

Video Games Are Dumb

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Oct 25, 2017
6,033
Milwaukee, WI
And the strongest FUCK OFF to anyone dancing on GameStop's grave.
Those are peoples lives. Their families. This isn't the time to take cheap shots cause you took a bad trade deal for Black Ops 2.
 
Prophet Five

Prophet Five

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Nov 11, 2017
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As someone with a lot of Gamestop connections I keep urging them to try and get out before Gamestop forces them out.

I get what GS is doing but I don't want anyone to be a casualty of the restructuring if they can prevent it.
 
Kaeden

Kaeden

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Oct 25, 2017
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Nanashrew said:
They make up the majority of physical video game sales whether people like it or not. It's not gonna be great when they go under. Best Buy, Wal-Mart, ect, are not going to stock most everything that Gamestop stocks. Amazon may get more stuff but Amazon sucks so bad, especially when they start bullying companies and prevent the company they're bullying from selling stuff on their platform as they have done before with both Sony and Nintendo a number of times.
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Is there a market breakdown, somewhat recent, of physical sales by country? I'd be very interested to see this data because I'd be surprised if Gamestop really is far away the leader. Maybe on a 1 to 1 basis sure, but I'd like to see how close others are when combined if even just a couple.
 
Servbot24

Servbot24

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Oct 25, 2017
43,058
This sucks. I hoe those employees land on their feet. Selfishly I'm going to miss having more retail options.
 
TheZynster

TheZynster

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Oct 26, 2017
13,285
cw_sasuke said:
Their number 1 goal is probably to survive until the launch of NextBox/PS5 - but with digital and streaming taking over they really have to adapt very soon.
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who even knows what the digital plans for the next systems are. If Xbox goes the original route of the family/friends sharing games while not in use, being able to trade digitally and stuff...................next gen isn't saving them.
 
KoopaSwitch

KoopaSwitch

Banned
Jan 17, 2018
1,260
Quinton said:
Fuck your carefully-crafted statistics message. Those people lost their livelihoods.

Sorry, I'm bitter as fuck right now. I know someone impacted by this. :/
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Writing has been on the wall for a few years. Any smart person would have been trying to get out a long time ago.

Why would anyone board a sinking ship?
 
NateDrake

NateDrake

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Oct 24, 2017
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PlanetSmasher said:
Gonna be a fucked up time when the only place at retail where you can get games is Best Buy. Especially with how hard it is to find a good Best Buy with a good stock of games in major cities. Fuck.
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I could barely find the game section at my local Best Buy. I went to Best Buy last month and they reorganized the store. The game section is now tucked away in the far back corner and is about 1/5th the size it once was.
 
Kaeden

Kaeden

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TheZynster said:
who even knows what the digital plans for the next systems are. If Xbox goes the original route of the family/friends sharing games while not in use, being able to trade digitally and stuff...................next gen isn't saving them.
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Yeah I feel like the current gen is definitely the bridge to get them, at least Microsoft, to what they originally envisioned with Xbox One. I can't see it going in the direction in any way other than to make digital even more of a necessity.
 
cw_sasuke

cw_sasuke

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26,341
TheZynster said:
who even knows what the digital plans for the next systems are. If Xbox goes the original route of the family/friends sharing games while not in use, being able to trade digitally and stuff...................next gen isn't saving them.
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I didnt say that next-gen would save them. But hardware/software sales will be high during the launch months.
 
PlanetSmasher

PlanetSmasher

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NateDrake said:
I could barely find the game section at my local Best Buy. I went to Best Buy last month and they reorganized the store. The game section is now tucked away in the far back corner and is about 1/5th the size it once was.
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Yep. All the Targets in Chicago carry like six games nowadays. One of them in one of the busiest neighborhood on the North Side literally has ONE GAME in stock and it's Call of fucking Duty. Best Buy is scaling back a lot too.

Where the hell are we supposed to go to buy games if mortar is bailing on them and GameStop dies?
 
TheZynster

TheZynster

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cw_sasuke said:
I didnt say that next-gen would save them. But hardware/software sales will be high during the launch months.
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im going to assume though that they don't make much on hardware..........its software and accessories. Sure traffic will increase but if no one buys games......they don't really make much money
 
Lump

Lump

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DrArchon said:
At this point it seems to be more a question of months than years.
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They're in a Blockbuster-esque freefall right now. There's no parachute that can save them. All they can do is try to hit as many tree branches as possible to try and blunt the impact.
 
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