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GameStop Suffers Worst Decline in Eight Months on Dim Outlook

The tumble extends a roller-coaster year for GameStop, which faces a decaying core business. With more consumers downloading games on their devices, there’s less need to visit a brick-and-mortar store. But investors have been betting that a suitor, such as a private equity firm, will swoop in and buy the company.

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bloomberg.com
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fluxmulder869d ago

That's pretty bad. I wonder how long before Gamestop calls it quits.

rainslacker868d ago

I think they're still turning profits overall, but it's hard to keep shares up because it's a declining business model. If they can't keep investors because there isn't enough growth, or can't gain ones because of the same reason, it means their ability to operate diminishes, because they need that investment to buy product to sell.

That's why they were trying so.hard to find more stable ways to make money, because the specialty retail store is pretty much a dying breed nowadays. It's not just games.

Sirk7x868d ago (Edited 868d ago )

Retail in general is just not a good thing to invest in lol. That money could be better invested almost anywhere else.

Soc5868d ago

Not only is it a struggling business model but it’s also the effect of only trying to make money in the short term and annoying your customer base so much that they eventually leave you in the long term.

Unspoken868d ago

Who uses GameStop anymore? The world is digital now and we don't have to worry about physical media anymore. Just a few more stragglers begrudgingly holding on to the past.

UltimateOwnage868d ago

The world is Amazon now. I’d wager that the biggest hit GameStop has taken is more related to online game sales, not digital downloads. I personally don’t want to spend time and money driving to a GameStop to likely not find the product I’m looking for because everyone else wants it too, and then have the employees try to sell me other products when I can go to Amazon, click and it’s here tomorrow.

KickSpinFilter868d ago (Edited 868d ago )

Bestbuy and Amazon destroy GameStop.
Gamestop is going the way of Tweeter
Robbery of your client base only lasts so long

crazyCoconuts869d ago

I gonna miss having a place to steal off to while my wife shops for boring stuff.

ApocalypseShadow869d ago (Edited 869d ago )

Used games should always be an option. But gamestop is trash. The idea of fun, which is what gaming is all about, just doesn't exist there. It's all about profits.

Software etc, Electronic Boutique, Funcoland, Game Crazy, etc were fun before being bought out or their demise from poor leadership. Gamestop just doesn't have a soul. I go there maybe once a year if they have something I can't find anywhere else that I was tracking down online.

And it's still soulless. If they are having trouble, it's because they don't really have what can't be found elsewhere new. Too many places now where you can buy games without being harassed by them for your pocket money. And even being surrounded by games, toys, accessories and video, it's just not enjoyable. And they have demo machines you can't even play or sometimes not even on. And, are they even pushing and demoing vr?

It should be an E3 experience every week or month there with new game releases to sell them. But it isn't.

CorndogBurglar869d ago (Edited 869d ago )

All of this, but also, what's the deal with selling all of those highly overpriced collectibles?

I don't know about you but the Gamestops by me are packed full of worthless stuff no one buys. It just sits there. They have to be losing so much money on all that stuff.

Also, there's 3 separate locations in my town. Two are literally right across the street from each other (one in a strip mall and right across the street in the real mall). The furthest one being only about 10 minutes away from those two in another strip mall. That's gotta be killer overhead and huge waste of money.

The decision makers for GS bust not be very smart business people.

Rachel_Alucard869d ago

Toys R us went under because they bet all their money on awful pop figures and those crappy skylanders type toys that flood the aisles everywhere. They're trash, they don't sell like they think they do. They are available in too many places so having one collector come to one specific store to buy a specific one is too uncommon for them to be putting that much money into. They think the people who go into gamestop would collect that trash just because it's nerd shit, but it repels most if anything. I go into a game store to buy games, not merchandise.

gamer7804868d ago

yah sorry, was meaning to reply to the thread above yours.

ChasingTheSun869d ago

THey also try to sell open games as new, they can burn in h#ll for all i care.

Muzikguy869d ago

I agree with all this. I don't even go into my local GS. I would on occasion because they've got the largest selection around, but it still doesn't give me much motivation to go. Even with all their games, I know they could have more. They just don't because of all that stupid merch they want to sell now. And I agree too that that stuff turns me off from wanting to go in there. All those figures and Pop boxes just make me think about a store that could be so much better. So I started going to Best Buy to get games and they have a tiny collection in comparison. Now that collection should be bigger too and isn't so it's making me want to just say "forget it" and shop online.

Sirk7x868d ago (Edited 868d ago )

They should honestly go full collectable shop, sell Magic/Pokemon cards and host official tournaments alongside new and retro video games. Some specific comics and graphic novels. Hell, they could probably score exclusive ones. Tabletop gaming and official video game tournaments too. They could get sponsoring easily, and have advertising infrastructure. Perhaps relocate stores. Renting space at malls is very expensive. Tens of thousands or more per month. Rebrand and sell official merch. Get some really good graphic designers to make some cool t-shirt designs that people want to wear. Have friggin 7/11 microwaveable food/snacks to sell to people while they play, and throwback soda (hella tasty). Make it fun, and a place people want to be, so they're likely to spend money while they're there. Put me in charge of Gamestop please.

gamer7804868d ago

Sorta, some gamestops have great managers and employees while others dont so depending on your location ymmv. The one near me has a great staff and its fun to visit and chat with them. I hope they can make it work.

CorndogBurglar868d ago

Managers and employees are one thing. I'm talking about the big decision makers of the company. The ones that decide whether to open 3 separate stores withing 10 minute driving distance of each other. The ones deciding that half the store should be filled with overpriced collectibles that don't sell well.

These are not things the managers decide.

RavageX868d ago

Agreed. As a former employee it's easy to see the company is out of touch. They have a bad habit of throwing random nonsense out to see what sticks. If they would slack off on harassing employees to harass customers the place would be a lot better.

The employees and managers can only do so much when it is the higher ups making all the wrong moves.

Cobra951868d ago

I'm old enough to remember mom-and-pop shops selling used games for a fraction of the price for new, like $20 for a used copy in good condition of a $50 cartridge game. Then the BS crept in, sweeping away such shops, and replacing them with big-business franchises. The first time I saw a used game selling for only $5 below retail ($55 used, $60 new), I could not believe it. I thought it was a mistake in labeling. Nope. That's when I stopped buying used altogether.

Can't say I'm sorry to see Gamestop flounder.

PlayableGamez-868d ago

Capitalism is all about profit.

Sirk7x868d ago (Edited 868d ago )

The former EB at my mall used to have monthly gaming tournaments when I was younger. People would be there playing Smash tourneys between the time of the mall closing and midnight releases. I miss that.

+ Show (5) more repliesLast reply 868d ago
BuildTheWall869d ago (Edited 869d ago )

Fuck the thieving assclowns at Lame Stop!!! , they should've run the business better & thought about not nearly stealing people's games with their low ass trade credit & then turn around & sell the used copy at near the price as a new copy.

Sirk7x868d ago (Edited 868d ago )

It sucks, but I honestly doubt that each store makes a decent amount of profit at all. There's operational overhead and franchise fees that places like Amazon don't have, because they can store and ship so easily. It's hard really for any business to compete with them.

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