Gamestop to become less "game" focused

[Kyanbu The Legend]

http://www.ign.com/articles/2014/04/24/gamestop-closing-120-stores-focusing-on-mobile?utm_campaign=fbposts&utm_source=facebook


Famous games retailer GameStop is looking to expand its reach in what it deems more viable markets while shedding some weight from its traditional brick-and-mortar GameStop stores.

GameStop CEO Paul Raines gave a presentation at GameStop's 2014 Investor Day -- as reported by Games Industry International -- and revealed his plan for what he's calling GameStop 3.0, "a new phase of the company's lifespan that will see it aggressively expand its footprint into gaming-adjacent tech fields," according to the article.

As such, GameStop has its collective eyes set on mobile, and specifically on Apple-branded devices, like iPhone and iPad. GameStop-owned brands -- like Spring Mobile and Simply Mac -- will expand at a significant rate in the fiscal year to fulfill Raines' goals for the company.

At the same time, GameStop will close between 120 and 130 of its nearly 6,500 global brick-and-mortar locations.



Game stop is shifting it's focus towards a broader picture, but this looks like it's another part of the shift to digital only and the edible future of DRM. A small step that while at first may not seem threatening, is the beginning of an end of an era.

[Aerozord]

the game market as we know it is not sustainable.

Though I will say I noticed something. Gamestop is basically a pawn shop that only gives you store credit

[Bard The 5th LW]

I once talked to a Gamestop manager who basically predicted that they'd become the next Blockbuster what with digital distribution, so I suppose the decision isn't particularly out of left field.

[RawBot]

the game market as we know it is not sustainable.
Could you elaborate on why ?

[Krylo]

Could you elaborate on why ?

Digital distribution is much more convenient and often cheaper for the consumer, with lower overheads for the developers. It also allows for easier updating through digital distribution channels, opportunities for microtransitions, easier/realistic distribution of indie games, control of used game sales, and various other advantages to both producer and consumer.

Thus, as access to digital distribution increases, so will consumer and developer use of it until the point where retail outlets are simply economically unfeasible. Gamestop, therefore, needs to branch out to survive.

Or die.

I'd prefer they die.

[RawBot]

Oh! Right. That's what he meant.

I thought he said the whole game market was not sustainable, not just retail. I'm not American so I didn't know that Gamestop was retail :)

NVM then! :)

[Magus]

Much like Best Buy and Barnes & Noble I think they'll stick around for a while because they really have no competition--despite being brick-and-mortar the vacuum they fill provides enough business to keep them in existence.

[Krylo]

Much like Best Buy and Barnes & Noble I think they'll stick around for a while because they really have no competition--despite being brick-and-mortar the vacuum they fill provides enough business to keep them in existence.

Shhhhhhh

Let me keep my dreams of a dead Gamestop.

[BitVyper]

Wait, what's happening to Best Buy? Did people stop buying electronics?

[Grandmaster_Skweeb]

Basically Best Buy cut off a lot of bloat that it was losing money on in addition to closing down a lot of their less profitable locations. On the retail end they've somewhat changed a lot of the stores in the sense that they're 'kiosk' stores now. Kiosk stores maintain a modest selection of inventory, mostly new product releases and impulse buy product 'n shit, but the main focus is ordering product online in store. Less expense on employees, less theft, less product damaged, generally a lot less overhead than before.

There's other factors that I'm not aware of, due to mostly not caring, but that's rough of it.

[PyrosNine]

I think the most important thing about the future buying and selling in the real world for places like Best Buy will be the return of the General Store catalog, with Ship to Store and the like, where we can order our goods, have them shipped to a nearby location for cheap/free with purchase, and then delivered to our homes, possibly installed as well.

Store remains a presence, savings and convenience are passed onto the customer, and of course, if they have it in stock you can simply drive over there and pick it up yourself and bring it home with no hassle.

[Aerozord]

Best Buy had a strong shift to mobile devices, a good move in this market but I suspect what really keeps them around are the employees. Online stores are relatively blind purchases. While reviews might help access quality they dont inform you of the product itself or answer specific questions. Most people don't walk into electronics stores knowing what they want. Not to mention a chance to try out the product itself.

Gamestop intends to survive by making a similar move. Focusing less on the games and more on the hardware to play them