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GameStop to Close Over 500 Stores in 2013

2012 annual sales figures were recently released, and according to Business Insider, the used game juggernaut is downsizing across the country. At least 500 GameStop stores are potentially closing their doors, and there aren’t too many gamers that are sad to hear it.

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LOGICWINS1181d ago

A shame about all those people losing their jobs. Due to the economy, everyones getting smarter with their money and finding better deals in other stores.

GamerCheese1181d ago

We definitely feel bad for the GameStop employees who have a passion for gaming, a dedication to customer service, and lead by example. Unfortunately, a lot of GameStop stores are void of these special kinds of employees. We're hoping that the good ones get to keep their jobs.

decrypt1181d ago

Well its pretty darn sad given the state of the economy and the lack of jobs.

Unfortunately the western world suffers from structural problems. This recession isnt going to end despite what politicians might say. Recessions not going anywhere not for another 15-20 years.

MikeMyers1181d ago

"Unfortunately the western world suffers from structural problems."

Actually it's across the globe. Japan has been in a recession for years, China is slowing down as well. The fact is the retail space has changed as more and more people look at alternative methods like E-Bay and buying games digitally.

dcbronco1181d ago (Edited 1181d ago )

The "recession" is permanent. As long as people continue to vote the same way politicians will continue to sell us out to people looking to have more money. The housing crisis never hit Canada. The reason was their government saw what the banks were doing and stopped them. Most politicians in other countries took their campaign contributions and looked the other way. And the people re-elected them because they pretended it was all a shock to them.

It ain't the economy. It's the politicians.

I have to say I won't shed a tear if Gamestop went under. I do feel bad for the good employees there though. Not so much for the many poor ones.

SilentNegotiator1181d ago (Edited 1181d ago )

It's not surprising, though; there are personally about 3 Gamestops within a 5 mile radius of where I live. That's the definition of ineffectual redundancy. I don't even live in the city.

lilbrat231181d ago

Nothing new seems many stores are downsizing, near me I have 4 Gamestop and they are less then 5 miles away. Closing a few won't kill me since I stopped shopping at Gamestop a long time ago.

Qrphe1181d ago

@Silent

Agreed, there are within two blocks where I live.

BattleAxe1181d ago

Wow, that is a bombshell announcement. Not really a huge surprise though, especially since they have alienated their core customers with poor trade-in values on used games. I used to shop at EB Games all the time, but got tired of getting screwed on trade-ins. They also haven't done much with their stores to improve the retail store experience.

With the massive worldwide sales power that they had, they should have been able to come to some kind of agreement with Sony, Microsoft, EA, Activision and others to get their costs down for purchasing games. They then could have passed those cost savings on to the consumer, which would have actually given people a reason to go there instead of elsewhere when people were out to buy a brand new game.

clearelite1181d ago (Edited 1181d ago )

Yeah dcbronco, it is up to us to more carefully choose between puppet #2 and puppet #1.

I agree GamerCheese. There is a different/better game store here in CT that is packed every time I go there, so it's not only the economy. Like someone mentioned, there are often 2 or more gamestops within a 1 mile radius, sometimes right across the street from one another, so many are redundant. Here's to hoping they find jobs at other burgeoning game stores.

rainslacker1180d ago (Edited 1180d ago )

Question.

They are closing 500 stores...how many are they going to be opening? I know one near my house is closing down this week, because two other stores opened up in better locations to service the area that that one store was servicing. Last year alone 3 stores opened up all within 20 miles of my house.

Stores close for a lot of reasons. High rent, bad locations(which may not have been bad originally), redundant locations, lack of sales, too much competition, etc.

The downturn in the gaming market though is a big reason though, and that is certainly not good for anyone who enjoys or makes games. If there are gamers who are happy at this news then it makes me sad that people could be so oblivious to the bigger issues this represents.

I know many people have issues with GS, even I did for a while due to some Xbox fanboy clerk literally calling me stupid for wanting a PS3 6 years ago (took me 5 years and having an amazing staff at a new one 2 minutes from my house to get over that), but they are about the only specialized gaming store of any scale here in the US. For them to be gone would be a huge blow to gaming unless there was someone else to pick up the slack. Best Buy, Target, and especially Wal-Mart leave me wanting more from a game store. Amazon is OK, but having only online doesn't lend to just going to the store and browsing and finding some cool deals at the spur of the moment. Seeing another company take up the helm would be doubtful given the current state of the gaming market, and the fact that GS couldn't manage it, so where does that leave us?

subtenko1180d ago

Companies do this from time to time, the question is what is Gamestop's future? Who knows...idk..

I just wanna say that I've been thinking Sony PlayStation is brewing up something with gaming sales and/or retail business. Maybe, maybe not, just a guess.

sobekflakmonkey1180d ago

I'm just worried about where I'm supposed to get my PS4 now, in the mall near my house is an EB Games, which is Canada's GameStop and also run by GameStop; it would be lame if it closed, but there is also a London Drugs, and a Giant Wal-mart attached to the mall as well, which both sell video games and console's, and even have midnight releases, but still, EB Games is where it's at, I'd be sad to see it go personally...

aCasualGamer1180d ago (Edited 1180d ago )

Sad for the employees. Not sad for the company, couldn't care less for those who run this company. They seem to be made of the same material as the devils who run companies like EA and Activision. Nothing but greedy bastards.

Not only are they reselling your games at a profit but their standard game releases are always overpriced compared to almost every other game store.

A simple google search and you'll find, for example, AC3 for 34,99$ somewhere but at gamestop it's still 59,99$.

slaton241180d ago

yeah the gamestop near me actually is very nice respectful and have helped me save alot of money...they have even let some people on special deals and extra discounts

insomnium21180d ago

I've been shopping online only for years. People still buy their games from stores?

+ Show (11) more repliesLast reply 1180d ago
yeahokchief1181d ago (Edited 1181d ago )

oh shut up. they're horrible jobs and i'm betting most of them will be happier wherever they land once they are freed from their minimum wage slave work.

screw this greedy company. i hope they close them all.

they were parasites on the industry. hopefully next gen wipes them out completely and this is just them trying to holdon to some of the money they pulled out of the pockets of developers and ignorant consumers.

Aceman181181d ago

my younger brother is a manager at one of the NYC stores here, and i sure as sh*t don't want to see him lose his job.

Godchild10201181d ago

I worked at Gamestop for a good amount of time and I liked working there. I like my current job more, but working at Gamestop is not bad once you reach a certain position and have great people that enjoy what they sale. Or during the holiday season where the hours kick in.

I still have friends that work for Gamestop and it will suck to see them lose their job.

vallencer1181d ago

Well I hope you get the opportunity to lose your job one day too. I got lucky enough to be working in a store thy decided to close. An guess what I actually like working at GameStop. Luckily I found another store. Too bad we can't take away your last bubble for being an ass.

PFFT1181d ago

@Aceman18

Here is hoping he doesnt dude!

juandren1181d ago

Am I the only one who wants something really bad to happen to yeahokchief? Like death? Loss of his family in a fire? You, sir, are a pathetic human being and you have NO idea what losing a job feels like. You're probably 15 years old and smoking crack right now. Just a fair warning for the future - don't look down on people, it will only set you back in life. I know it's ironic because I'm looking down on you, but after just that one comment I don't even consider you a person. People have souls. Also, I am going to PM you this exact message to make sure you get it.

Kevlar0091181d ago

How's your rock? Is it cozy? Got fine moss bedding? Because the rock you've been living under for 4 years must be too good to leave since you have no idea how the world is now, many people would love to say they are working for any job, even if it's "minimum wage slave work" (which is an exaggeration)

Also why are you getting mad at the workforce? They don't make the financial decisions, and sure while there may be a few D-bag workers, most people with a job would love to keep it and do their best. Have some decency

SaiyanFury1181d ago

@Juandren

I don't usually respond in comments as I am doing, but really? You wish death upon someone? You want his family to be burnt to death? As someone who has a family, a wife and daughter to be exact, I would be completely devastated if I lost my family. Your comment is not only rude and immature, it's completely inappropriate for this site. I just wished to express my personal disgust for your absolutely horrid comment. Good day, sir or madame.

gobluesamg1181d ago

Definitely marking down Jaundren for personal attack. That was easily the worst comment I've seen on a video game forum. You have to be kidding me man. You probably don't have the balls to say something like that in person you internet tough guy.

juandren1180d ago

Okay so my comment was harsh. Obviously I wouldn't really wish death upon anybody and I was definitely stooping down to his level. I apologise for that. As someone who recently lost my job because the company closed it is a sensitive matter for me and I did not mean to attack anybody. SayainFairy, just one thing, what would you have done if somebody wished for you to lose your job and you've been working there for years and it's the only thing you know? Having to face your wife and child every night, unable to provide for them? Wouldn't you say poverty to an extreme level is a fate just short of death? One of my friends is a manager at BTGames (Similar to Gamestop) and it is all he knows. He is an extremely hard-working person and with all the crap he gets from customers he still manages to treat them with respect. Now, being 45 years old his remaining working years are coming to an end. Having to save for retirement with that kind of salary cannot be easy and I have the utmost respect for him. He is a loving father and works his ass off for his family. I just think it's ignorant to call somebody like that a parasite. Why would you? Because he works at a game store? Not everybody can be accountants and doctors. A job like that is ALL some people know and can do really well. To want that taken away and force a family to live on the street (In South Africa, I might add, where lots of families lose their homes weekly) is even just as cold-hearted as what I said. Unfortunately I was filled with rage and I honestly feel guilty about my comment, but yeahokchief's comment just touched a nerve and hit a little too close to home. My apologies and I hope I can be forgiven

rainslacker1180d ago

I know most of the ones at the one I frequent all seem to really enjoy their job. With so many opening in our area lately there's probably a lot of room for advancement. Most of them seem to be in the early to mid twenties, so it's not like they are just school kids with a part time job. 4 of them I would say have full time positions. The manager herself is one of the coolest GS people I've ever met. Probably early 30's, doesn't look like a gamer, but she sure knows her games and can talk about them at length, both old and new.

As far as retail environments go, GS is probably an OK place to work if you don't mind sales. The people that I see that complain about working there don't seem like they understand the retail environment, and act like it would be better anywhere else.

Aceman181180d ago

@PFFT

thx for that my brother happens to love his job because he loves gaming, and he acknowledges that it does piss him off sometimes but he still loves it.

what i find disturbing is the people who disagreed with me. i hope the ones who did lose their jobs to know what it feels like to have that happen to them.

+ Show (8) more repliesLast reply 1180d ago
bicfitness1181d ago

More due to online shopping than anything else. Its so convenient and you can usually get better deals than you would find in a store. Only the big chains - Walmart, Costco - will really survive the shift in purchasing habits.

torchic1181d ago

agreed, it's most definitely due to online shopping.

I just recently started looking for better deals online and haven't gone back to retail ever since (apart for Rayman Origins which I saw for about €20)

vallencer1181d ago

It's partly that but it's also the fact that Sony and Microsoft have waited so long to release another system. People want something else but there isn't anything else yet so people aren't spending as much money.

Gamer19821181d ago

Online is the killer like in UK I get my games from shopto for £30-£35 and get them 1-2 days before release day. Why would I goto the shop at launch day and buy for £40-£50? Not to mention on top of that shop may not have enough stock etc.. if you didn't pre-order.

ABizzel11181d ago

@Logic

BestBuy is destroying Gamestop as a retail games store, and online stores are wrapping up with the finishing blow.

CBaoth1181d ago

They're closing over 200 stores in 2013 themselves.

It's an inevitable situation caused by over saturation. I can hit up over 8 Gamestops within 10 miles of my house. That's far too many and it was bound to happen.

I agree about online sales impacting traditional brick & mortar stores though. Shame to see so many people unemployed soon but I fear it's gonna get worse before it gets better

ABizzel11181d ago (Edited 1181d ago )

Best Buy has some of the best game deals out of any retailer. Best Buy's store closings has nothing to do with the fact they they have the best deals on games PERIOD.

They're currently offering $20 reward coupons (basically a $20 best buy gift card) on 12 of the most anticipated games of the first half of the year (although GTA5 has been pushed back to September).

On top of that they ALWAYS have a deal of the day, and EVERY SUNDAY they launch a new games promotion with some steep discounts like 12-months of XBL for $35, fairly new games getting price drops down to $39.99, older games dropping to $9.99, and more.

Their store closings have nothing to do with the fact that they have great deals, nor is Best Buy a games only retailer like Gamestop, which is the main reason it's struggling, because it sells all kinds of electronics and many of those divisions are suffering in market-wide sales thus Best Buy's going to suffer.

juandren1181d ago

You mean Best Buy whose CEO was voted the worst CEO of 2012 and lost the company I think $3 billion? That Best Buy?

rainslacker1180d ago

I agree, Best Buy does have some amazing deals, particularly when it comes to pre-order and their weekly specials. I just wonder how long things like that would be really sustainable. There doesn't seem to be much profit in it. There simply isn't a $20 mark-up on games, and while I know they are giving you store credit which means it's not like giving away $20, it's just hard to see that they are making any profit at all.

I have a feeling that their current pre-order promotions are more to get people to start buying their games at Best Buy, thus it's going to be limited in time.

Same goes with their trade in prices. People seem to be OK with them, however GS was the same way back in the day. Prices were decent enough, but eventually they had to get into a position of being able to turn in a profit. If Best Buy starts doing what GS does on a much bigger scale (which they are getting to I believe), then they will eventually have to do the same things GS does to turn a profit. The advantage goes to BB however since they have other products to rely on to remain profitable. But if gaming profit doesn't become significant they would have to retool their practices.

+ Show (1) more replyLast reply 1180d ago
Blasphemy1181d ago

Makes you wonder what Sony and Microsoft have in store for PS4 and 720 if Gamestop is closing so many stores right before the new consoles hit the market.

cedaridge1181d ago

AGREE! I would miss gamestop for the midnight launches that bring gamers together and everytime I go to a mall I have to stop in Gamestop. It's NEVER cool to hear about anyone losing their job. xbl: cedar4Thunder / psn: Mikee4Thunder

3-4-51181d ago

Luckily I have about 8 Gamestops within 5-10 minutes of me so I doubt they are closing most of those. They do good business.

akaakaaka1181d ago

SALE SALE SALE i hope to get good deals..

rainslacker1180d ago

THey just transfer the inventory to another store. The one closing down today near me, I overhead the clerks saying that their Regional supervisor was coming in Monday to pack everything up to ship it to a new store they were opening. If they were having a going out of business sale then they would have had some signage up about it. I only knew because I heard them calling their pre-order customers to see where they wanted them transferred to.

MEsoJD1181d ago

While I feel bad for anyone who loses a job, I wouldn't lose sleep if GameStop as a whole closed.

BitbyDeath1181d ago

Overpopulation will ruin us all and something seriously needs to be done about it.

Fun fact - In over a hundred years the worlds population increased from 1.5 billion to over 7 billion.

cyguration1180d ago

So you want fewer poor people and more rich people?

Nice.

BitbyDeath1180d ago

Poor people don't bother me, just the crazy ones.
Gotta cut the fat somewhere.

Enemy1181d ago

$60 is still too much for most people, I guess. Gamefly and the likes putting them out of business.

stuna11181d ago

Seem like Sony or Microsoft won't have to block used games after all!!!

It really is a shame so many will lose their jobs though. In this economy even huge corporations are suffering! I wish them all the best and timely re-employment.

mmildred961180d ago SpamShow
ThatGuy21180d ago

Im glad there closing....shitty store.Do feel sorry for Emplyees though,maybe a better gaming store will hire them.

showtimefolks1180d ago

Every gamer should visit cheapassgamer on regular bases and never miss out on great deals, sometimes you can find newly released games with $20-25 gift card or off the price itself

It's a site run by gamers for gamers

Now down to this news. It's sad for those loosing their jobs and I hope they find better ones

Donnieboi1180d ago (Edited 1180d ago )

500 stores? To be fair, that's about 10 stores per state/major city in American (on average). Man that sucks. Hope they don't close the one near me.

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Ashunderfire861181d ago

So Microsoft and Sony could be possible doing anti-used games for their next gen consoles? This is going to be a big blow to the gaming community!!! No wonder why Gamestop is closing a lot of stores.

Moncole1181d ago

They are closing a lot of stores because you can get cheaper games on Amazon and thats where people are buying.

azshorty20031181d ago

That's where I've bought from for the past 4 years. I've only set foot into GS to look around.

BLAKHOODe1181d ago

And GameFly. I've taken advantage of quite a few of their used game sales.

bobtheimpaler1181d ago

Apart from JB Hi-Fi in Australia, I've been buying games online. Online is cheaper and I don't have to wait in line waiting for ignorant consumers to get their stuff sorted.

azshorty20031181d ago

Oh yea! I love getting used games, Complete With case, for $15! You can't even get a complete game at GS half the time, let alone for under $20.

ShadowGhost1181d ago (Edited 1181d ago )

Well, Amazon does have great deals, but the reason whey I don't buy from them anymore is because they tax certain states now and Texas is one of them by which I live. I hate to see any Gamestops around my area close because there are some really cool people that work there and are not fanboys that like gaming all around.

Here's the story with Amazon and me: I wanted to pre-order Sly Cooper: Thieves in Time on Amazon and the game costs $39.94 on Amazon. So I bought it and the shipping came to $43 and since they tax now, it came to $50. What a rip-off. The game costs $40 and I can go to Gamestop and get it for $44 which has tax included in that price.

I just wish they can generate more revenue to keep the stores from closing.

wquach1180d ago (Edited 1180d ago )

@ShadowGhost

You do realize that if you selected Free Super Saver Shipping on the last checkout page (it defaults to Standard Shipping, which costs money), because the order is over $25, the shipping is free?

Thus, you would've gotten it at the same price/cheaper than Gamestop, ie. the $39.94+tax price

And if you had Amazon Prime/signed up for it for say, Students, you could've gotten free 2-day shipping.

Either way, shipping should've been free.

+ Show (3) more repliesLast reply 1180d ago
bicfitness1181d ago

Technically PC games are one shot per use, and its been that way for years (serial code), so this isn't too big of a shock to multi-platform gamers (console+PC). IF they decide to go that way with next-gen consoles.

dlpg5851181d ago

i've always been able to use my serial code on my games multiple times. am i just plain lucky or something?

DivineHand1251181d ago

this is false because i have been able to install the same pc game on multiple PCs using the same serial code but depending on the license, i could not access multiplayer features if both are running at the same time.

Gamer19821181d ago

If non trading is adding to next gen it will be the final nail in the coffin for companys like gamestop and GAME

mcstorm1181d ago

I don't know alto about game shop but games biggest mistake was buying game station. I worked back in game station back in 2003 and there was alto of price beating between the companys where once they bought gameatation they were both the same price and did not look at other places like hmv Argos ect on there prices and this is why they have had issues.

Steadyhndz1181d ago

Gamestop grew too quickly, they should have made a more online approach rather than opening thousands of stores across the country.