[Retail Store Closures] Gamestop Will NOT Survive...

[gkarris]

[update] Between the virus, and the shutdowns and the looting,

It doesn't look good right now:

GameStop preliminary financials expect Q1 net loss between $162m and $172m

Retailer closed 76% of international stores, all US stores temporarily in response to COVID-19

www.gamesindustry.biz

.

If you plan on using Gamestop to trade in for a PS5 or XBox Series X, you should look into a backup plan...

And, the Microsoft Stores are closing so their Holiday XBox Trade-In deals will no longer be available...

(original)

You hear about everything going digital (but not with next gen it looks like - games are too big so will be on UHD discs) and Gamestop store closures (though they do have 6,600 stores worldwide).

The Gamestop I frequent has been awesome throughout the years I've been going there. It is a great place just to quickly sell/trade your stuff for newer items (I take advantage of the specials, PowerUp deals and rewards).

I was able to get a new Xbox One S for the Living Room about 2 years ago for $73 after sales, and my old iPad 2 trade-in.

I was able to trade in my PS4 slim for what I paid for it ($220) during Holiday 2017 to upgrade to a used PS4 Pro for PSVR in the following Spring.

I was able to quickly upgrade and trade in my original Switch to a Rev 2 for $75.

If Gamestop disappears, where can one go?

There's Best Buy, but will they continue to give as much if Gamestop goes away?

There's the independent shops, but they don't sell new systems and most people will take the cash to spend elsewhere, and they stop buying systems when they have too many.

I'm blessed with a Microsoft Store not too far away. Their trades are not really as good as Gamestop but I think last holidays they were throwing in a lot of game downloads and XBL codes to "sweeten the pot"...

What do you think?

Will Gamestop be around next Holiday 2020 when the new systems appear to do all this stuff?

 

[44267547]

Interesting you make this thread after I made a comment in the PS5 thread that ‘GameStop is closing left and right’. (Which there was recent announcement of more stores closing about a month back.)

That said: (Long post ahead)

Lets reflect back 15 years ago, GameStop was on fire, they were the ‘go to’ source for any pre-orders, midnight releases, gaming parties, free pizza, etc, They actually made it ‘fun’, Now, they don’t do half of those things anymore, except for the midnight release. So, 15 years ago, there wasn’t hardly any competition like there is now with pre-ordering through Best Buy, target, Amazon trade-in, digital sales, eBay sales have hurt GameStop, everyone is taking a piece of the puzzle away from GameStop. Oh, and their Power Up memberships doesn’t add much value here versus what they charge you for a $15.00 subscription. (But it depends how much you actually shop/spend with GameStop.)

GameStop makes their money primarily through one way, and that’s through resale of used video games, but their prices what they charge for a used game is overly saturated, and the trade-in credit for games is abysmal.

[On a side note:

The type of people they hire at GameStop is pathetic, they seem not have much knowledge at all about games/consoles, it’s basically they just hire whoever that are not very passionate about the gaming industry from my perspective. I’m not saying every store is like that, but I think it’s worth noting with the five in my radius.]

Where I think GameStop will end up, is bankruptcy eventually. There’s just way too much competition that is providing more lucrative offers than GameStop is. As far as digital media is concerned, I think that is going to continue to grow, I still think is a demand for physical media, as you can obtain some money back from the game you want to sell.

Lastly, marketing. I never see GameStop market anything like I used to. I think marketing is a crucial feature to help brick-and-mortar stores put out the word of what they’re trying to advocate, and GameStop does market during Black Friday. But look how Best Buy/target markets latest video game releases where you can pre-order.

GameStop was once king for your go to video game source, they’re not anymore, and it’s very clear why. Even if they make any significant changes moving forward, does that really change things for them or does it just slightly delay the inevitable of what’s coming? It’s a matter of time.

 

[gkarris]

Interesting you make this thread after I made a comment in the PS5 thread that ‘GameStop is closing left and right’. (Which there was recent announcement of more stores closing about a month back.)

[On a side note:

The type of people they hire at GameStop is pathetic, they seem not have much knowledge at all about games/consoles, it’s basically they just hire whoever that are not very passionate about the gaming industry from my perspective. I’m not saying every store is like that, but I think it’s worth noting with the five in my radius.]

I decided it would be best to discuss GamesStop in its own thread rather than pollute the PS5 one...

The 7 in my radius, 1 (closest to me) closed (the Manager was mean to Customers who didn't pre-order, come on I'm there for USED games) and 2 of the others I frequent are awesome - don't know about the rest...

I was just saying for those of us that use their trade-in system, it is good. I don't have to worry about eBay or Craigslist Buyer Scams...

So many online seem so anti-Gamestop, they forget some people actually use their stores. The Independent stores I go to are more retro-games.

EDIT: Just as a note, you mentioned Amazon Trade-Ins. I looked up the OG Switch I had, they would've given me $58 for it. Gamestop gave me $225 (maybe that's why they're not doing well?)

 

[gkarris]

With this Pandemic, looks like Gamestop will eventually be a casualty...

The world's biggest video game retailer, GameStop, is closing hundreds of stores as it attempts to stay afloat — and that's just the first wave of closures

As GameStop struggles to survive, it's closing hundreds of locations and expects to close a "much larger" group of stores in the next year or two.

www.businessinsider.com

bad year to go out - they usually give pretty good console trade ins for upgrades to the latest gen.

With the release of PS5 and XBSX - you won't be getting very much for previous gen system from the independents...

 

[44267547]

With this Pandemic, looks like Gamestop will eventually be a casualty...

The world's biggest video game retailer, GameStop, is closing hundreds of stores as it attempts to stay afloat — and that's just the first wave of closures

As GameStop struggles to survive, it's closing hundreds of locations and expects to close a "much larger" group of stores in the next year or two.

www.businessinsider.com

bad year to go out - they usually give pretty good console trade ins for upgrades to the latest gen.

With the release of PS5 and XBSX - you won't be getting very much for previous gen system from the independents...

{Seems me and you are the only ones really involved in this thread, it’s apparent we both have extensive experience with GameStop.}

That said, I’ve been a GameStop follower for almost 15 years, and they have been Dying for a very long time, and they’re not far from behind companies like Toys “R” Us that filed for bankruptcy.

The problem with GameStop again is very simple, they ‘overprice’ their used games, which they rely on for their store gross revenue. Gamers can go online and Save a Considerable amount of money, have same-day shipping, and other retailers offer better incentives for pre-ordering/trade-ins.

I know this is brisk, but I don’t feel bad for GameStop When (Not if), they have earned exactly what they have coming to them, because they failed to change when the competition was bearing down on them. And because of that, it’s too little too late, and GameStop is probably better off becoming a ‘digital online store front’ store versus a brick and mortar store.

Also, I already mentioned this, But they have lowered their quality standards of the type of employee they hire. They’re not knowledgeable, lackluster and to be honest, they look unkempt like they literally don’t shower/poor hygiene. I realize it’s not exactly relevant here, but it all adds to how this company has become. For that, GameStop is ‘on their way out’ per se. I don’t have a personal vendetta against them, I’m calling it as I see it.

 

[MisterSavage]

I won't miss them at all for many reasons. I went to one for the first time in years a few months ago to pick up a "new" copy of Control for a cheap price. There was no shrink wrap and the box had been opened because it was a "display" copy. Lovely.

 

[thadoggfather]

I think the fact that they're putting employees directly in harm's way staying open in light of the global pandemic, shows what the health is of the company. Can't think of a filthier retailer aside from Apple, but even Apple closed their doors

On one hand, I've gotten lots of great games from GameSTop over the years and found some great used consoles for cheap. And they are the last remaining big chain videogame retailer. Less competition is always worse for the consumer.

On the other hand, they are scummy as a company and I increasingly don't have as much use for them as I did since I've stockpiled. And their new membership is crap. I begrudgingly paid $15 for the yearly pro account, and have already used $10 between a free copy of CoD Infinite War (was $5, had a $5 monthly coupon) and $5 off Samurai Shodow and got the magazine for at least another year. But still, not as good as 10% off everything used

 

[44267547]

I think the fact that they're putting employees directly in harm's way staying open in light of the global pandemic, shows what the health is of the company.

All the Gamestops in my area are closed, none of them are open. So I don’t know which Gamestops you’re referring to, but they should be reported, because they’re considered ‘non-essential’ and I can guarantee you, They’re subject to a state mandated fine for staying open that has no reason to be open in the first place.

 

[MisterSavage]

All the Gamestops in my area are closed, none of them are open. So I don’t know which Gamestops you’re referring to, but they should be reported, because they’re considered ‘non-essential’ and I can guarantee you, They’re subject to a state mandated fine for staying open that has no reason to be open in the first place.

It was a lot of them. They eventually changed their minds.

GameStop claims it is “essential retail” to remain open amid coronavirus pandemic

Essential government services include agencies like police, fire, health care, grocery markets, and pharmacies.

www.theverge.com

 

[bbednarz]

I had one about 1000 feet from my house right before the pandemic stuff they announced they were closing down. Was too bad. I have always had really pleasant GameStop experiences. Some people just have no clue how the resale market works so they just like to crap on them about trade in values.

 

[gkarris]

I had one about 1000 feet from my house right before the pandemic stuff they announced they were closing down. Was too bad. I have always had really pleasant GameStop experiences. Some people just have no clue how the resale market works so they just like to crap on them about trade in values.

This definitely...

If Gamestop doesn't make it to this holiday, they won't be around to give customers great trade up deals to the next gen systems.

I've taken advantage of these trade ups over the years and the deals were great, the independent stores could not match these deals.

The independent stores are not doing well right now and will need holiday sales to make up for it. Maybe they'll do well with game trades but they my not have the funds to purchase next gen console stock.

Getting used at Gamestop at least you have some sort of warranty and you can trade your old system for it.

Without Gamestop you will have to sell your old system on your own and hope you get a decent price.

With many, many people trying to do that this holiday, PS4's and XBox1's will almost be worthless.

Right now (I don't think they're taking stuff right now):
Gamestop PS4 Slim 500mb, $130 trade credit.
Gamestop Xbox One 500 OG, $70 trade credit.

With no Gamestop, I guess you can try Best Buy:
PS4 slim 500, $90 Gift Card
Xbox One 500 OG, $55 Gift Card

You're clearly not getting as much with Best Buy, closer to the next gen launches, expect these Best Buy trade-ins to go down (especially if they have no competition)...

 

[tshrimp]

I see them similar to Blockbuster. They didn't change with the times fast enough. By the time Blockbuster started providing online movie streaming, it was too late. Gamestop should have become something similar to Green Man Gaming IMO. Although I like physical copies, I know at some point we will probably be without them. If they survive, I am guessing they will be more like a classic game store selling the Sega Genesis, NES, etc.

 

[44267547]

I see them similar to Blockbuster. They didn't change with the times fast enough. By the time Blockbuster started providing online movie streaming, it was too late. Gamestop should have become something similar to Green Man Gaming IMO. Although I like physical copies, I know at some point we will probably be without them. If they survive, I am guessing they will be more like a classic game store selling the Sega Genesis, NES, etc.

Blockbuster also tried the whole ‘Redbox DVD’ rental, which also crashed very quickly due to a few locations and they’re renting process was cumbersome.

Anyways, I have four Gamestops within a 10 mile radius, three of which I don’t suspect will make the recession, one in which is incorporated into a shopping mall that’s always been quite busy, so it should be interesting to see what happens when the stores actually reopen.

 

[SegNerd]

Check out the YouTube videos by Camelot331 (no personal affiliation). GameStop treats employees like dirt, and under the pandemic, the mistreatment has gone berserk.

I don’t want GameStop to survive anymore. I buy most games from Amazon anyway.

I know Amazon mistreats its employees too, but it is seemingly “less evil” than other options.

 

[Bluetoot-]

I don’t want GameStop to survive anymore. I buy most games from Amazon anyway.

GameStop the company is donezo. My main concern are all the mom and pop/small company game resellers. Call me crazy, but I still think physical retail/presence is hugely important. There can be a very good social aspect to it. The pandemic might be the death of them all I’m afraid.

 

[DoubleDragon1987]

Games are going to go digital at some point in the 2020s I assume. Everything will be pretty much download only outside of limited/special editions that are really just for display. This is going to kill gaming retail outside of toys, knick knacks, and things like Lego Super Mario and so on. I do not see video games as a physical medium lasting for decades beyond the 2020s.

With that, GameStop will also go the way of the dinosaur and horse buggy. The only market I see will be for used games and GS cannot live off that.

Worst thing about downloaded games is they have no value. You don't own them and cannot display them nor trade them or resell them. You are just licensing code to use and on top of that, once the system stops working and you cannot download the game again on that new system, it is over. This happened to Double Dragon the arcade game on XBLA in the 2000s. Now, I play this on the Switch but I wish I had a hard copy but that cannot exist.

 

[44267547]

I just want to add, the fact that GameStop is trying to remain open during an ‘essential business only’ mandate amongst the majority of North American states, says it all (Which Gamestop is NOT essential). It’s obvious they are struggling, but the reality is, even after driving by multiple locations, they still have no cars in the parking lot. At what point do you stop feeling bad for them, and realize that desperation attempts won’t change your ‘business model’. Again, it comes down to they failed to remain with the competition by being more Creative and innovative.

And I’m not trying to be negative against GameStop, because I don’t want to see any one specific business fail, but for years, other retailers and online distributors have become increasingly competitive, and what did GameStop do? (Feel free to answer this if anyone has a logical answer). The only advantage they have, is physical locations with physical media, otherwise 90% of what they sell in their stores with dust collecting cheap garbage.

I will say, (and I think it was already mentioned), Smart phone trade-ins, which I think was a good idea initially, but that’s still not what GameStop is truly about. They’re about the ‘gaming’ industry, and it seems they just never strived to be competitive enough, which is what their main focus should have been over the course of time.

Plus, I also want to say some of the stores look really ‘outdated’. And some of them are in desperate need of remodeling/renovation work, which I think the detracts away from they care about keeping things looking refreshed (I do gather some stores are smaller with little space to work with). All of this plays into the fact of how this company kind of has become.

 

[thadoggfather]

I already stockpiled what I needed from them over the past couple years, so kinda indifferent

I think they're a bad company you can find some good stuff from if you hunt, but their new Pro membership that gives $5 a month 'use it or lose it' perks is garbage.

The only thing that has me thinking maybe they should stay around, is they're like the last remaining video game centric B&M chain.

Plus there are some good and chill employees. They're not all terrible

 

[compwiz1202]

All the Gamestops in my area are closed, none of them are open. So I don’t know which Gamestops you’re referring to, but they should be reported, because they’re considered ‘non-essential’ and I can guarantee you, They’re subject to a state mandated fine for staying open that has no reason to be open in the first place.

I believe at one point, one in PA had their business license revoked for not closing after the order went out.

 

[gkarris]

From Gamestop.com:

- Suspending temporarily our video game and consumer electronics trade-in practices until further notice.
- Postponing all gaming events and midnight launch activities until further notice.
- Disabling temporarily all interactive gaming stations in our stores.

These are the reasons they exist, not being able to trade in is gonna hurt them. They would have to wait until there's a vacccine becuase the virus will always be out there...

IMHO: I don't think they're gonna make it - their holidays will be dismal if they don't go back to normal...

 

[JayMysterio]

I know this is wrong, but...

https://twitter.com/i/web/status/1274953991047114752

? ? ? ? ? ? ?

Someone was raging on Twitter because they tried to trade in PS4, and supposedly Gamestop offered then $17 & change. Which set off a thread on Gamestop.

 

[gkarris]

I know this is wrong, but...

https://twitter.com/i/web/status/1274953991047114752

? ? ? ? ? ? ?

Someone was raging on Twitter because they tried to trade in PS4, and supposedly Gamestop offered then $17 & change. Which set off a thread on Gamestop.

was probably missing all the accessories and maybe even the controller...if this was true...

 

[44267547]

was probably missing all the accessories and maybe even the controller...if this was true...

Not exactly. Keep in mind, it depends how much stock that specific store has, if one GameStop has {10} PS4’s and they’re not selling frequently, that severely will limit the demand in terms of how much they will offer the customer. (That’s how they’ve always been in business). -Supply/demand- However, if the Customer travels to the Gamestop across town, they may be selling PS4s at higher rate, that’s transitioning into a higher offer.

Years ago before the PS4 Pro released, I traded in my original PS4 at Gamestop, and I was surprised how much they actually offered me, and it was because they were selling Consoles at a higher volume. Now, the store I visited is a ‘high traffic’ volume store located in a mall and it was around the Holiday time frame, Which contributed to a number of other factors.

Also, wasn’t it like two months ago that PS4’s were selling like crazy due to the pandemic? Given the economy has primarily re-openEd, and it’s summertime, I think that the demand has severely dropped.

[Oh, and I also highly question that post/tweet that member posted above, I don’t buy at all. Specifically that console may have been damaged or other contributing factors that we’re not aware of.]

 

[gkarris]

not looking good, at all...

 

[trevpimp]

I would say GameStop definitely has their oven full

but who knows we’re still here to buy those brownies.. lol

Ps I love GameStop I know they will make it

Midnight launch FTW