Is it R.I.P Gamestop? - Video Game Retailers Die a slow death

As we crawl slower and slower into a recession with no real end in site. We see video game sales take the same downward turn, sliding 14 percent in the United States in the first eight months of 2009, according to The NPD Group.

Couple this trend with the fact that more and more consumers are downloading video games direct to devices like the PSP, Nintendo DS, iPhone, iPod Touch and PC and bypassing traditional retailers altogether. Is this the beginning of the end for traditional video game retailers like Gamestop or can they make the changes needed to survive?

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Feral Gamer3337d ago (Edited 3337d ago )

Slower into recession? No end in site?

CNN would like a word with you... (from today)

Furthermore, more customers ARE NOT digitally downloading a lot of software to PSP and DS. Consumers still want a physical copy. I believe the PSPGo is a fad. There's rumors of the next PSP sporting a UMD drive. I like the idea of downloadable games on PSP because they don't use the noisy UMD drive, however not every title is available and you can buy a UMD game and rip it to a memory stick anyway.

Also, the DS download library blows. There's absolutely nothing worth while available on the service!

Gamestop does carry fewer PC titles, true however that's because most of their business comes from console gamers. PC gamers do download a lot more software, but a lot of PC gamers still like having a physical copy on hand.

Also, why is Gamestop hiring 15,000 temp workers for the holiday season if their sales are down?

Some loss is to be expected in an economic decline, however they're not "dying" as the article seems to suggest.

*EDIT* @ below
Music CDs are one thing, Games are another. A lot of people download songs on iTunes because if you don't like an entire album, you don't have to pay for every song. You can buy the ones you want for $0.99. CDs are relatively inexpensive. Games cost more and people like physical copies of them. Nobody has a Discman anymore. Everybody has digital audio players, thus higher rates of download sales. Even stereos have ports for iPods and other media players. Sad argument.

Also, this is a GDP report, not some baseless nonsense that people think is happening.

dplayer3337d ago

Every week we see a new article on one of the major news outlets saying we are heading out of a recession and then the very next week we see the same outlets saying it is going to get worst before it gets better.

Regarding game packaging, i said the same about music CD packaging a couple of years ago and now i cant remember the last time i bought a real CD with packaging and i do not really miss it at all. Trust me when i say this is going to happen and probably sooner than we think. With every day that goes by more and more developers are taking their games online for digital download.

butterfinger3337d ago

Flipnote Studio on DSiWare is literally better than almost every single game on the PSP, download or otherwise. The PSP itself is pretty much a piece of sh!t with one or two good games and no great RPGs (FFVII:Crisis Core sucked @ss). If you are a gamer, you'll steer clear of the PSP and it's overpriced, half-finished offerings.

thereapersson3337d ago

Wow, you reply to his ignorant comment with one of your own. The PSP has no good RPG's? Where have you been the past few years?

butterfinger3337d ago

The best RPG on the PSP JUST came out and that would be Persona.

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ndpad3337d ago

The article was OK, but comparing the music industry to the video game industry is a huge article killer. The music industry went digital distribution because of piracy. Consumers CHOSE which way the music industry went. Consumers were getting fed up with buying a $15 cd when they only wanted 2 songs from it. The music industry was getting away with murder. Consumers said "nope, not anymore" and started pirating cd's.

Apple saw this as a way to make an application that was based aroudn what consumers really wanted, the ability to choose which SONG they wanted to buy, not what album. Hell even the music industry didn't want to go DD because that meant that all their control was being given to the consumer, because the consumer WANTED to go DD.

The article is flawed because gamers and consumers are not the ones choosing to go DD, the video game industry is. Companies must remember that they are not in control of what sells and what doesn't the consumer is, and when a consumer doesn't want something, companies have to evolve, not people.

DS363337d ago


skunkie3337d ago

I think this article talks about the future of downloadable content not what DS or PSP has now. A year from now content will be better and more games will be downloadable.

VenerableBmoney3336d ago

All the GameCrazy stores in Wisconsin closed except three. Gamestop is still the strongest mainstream retailer in my area. Surprising to see a franchise collapse in a market that still supports video games.

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