GameStop is one of the game companies that several early gamers must have had a business relationship with either directly or indirectly. At its peak, which was around 2017, the company had more than 7,200 stores across the world. Their stores were majorly located in the USA, Canada, New Zealand, Australia, and all over Europe. However, in recent times, they are starting to close down a lot of stores and had about 5,509 stores.
The company has a rich history since it was founded in 1984 and named after Charles Babbage. The history included mergers and outright purchases until it got its current name in 2005 when it was acquired as EB Games by GameStop, an Electronics Boutique. This article will discuss some of the challenges that GameStop is facing and what the future entails for GameStop.
Challenges facing GameStop
Within 2008 and 2020, GameStop has closed over 1,700 stores. If it was just the closing of stores that was the problem, this might not have been a problem if their profit was not affected. However, GameStop has also recorded a significant drop in profit. The closing of stores, combined with the drop in profit implies that there is a cause for concern.
A major problem GameStop is facing is the fact that the advent of the Internet has provided various platforms for people to download and purchase games on the Internet. You can read reviews related to gaming stores in the US on us-reviews.com to know more about any of the various platforms you intend to download or purchase a game from. You will get to know those that are affordable, reliable, and safe to use based on the experience of other customers.
The several options now available have not only made physical stores unattractive, considering it is easier and faster to make payments online, download, install and start to use as opposed to locating the nearest GameStop retail store to buy a game. Perhaps, the fear of change made GameStop delay in fully deploying the Internet platform for download and sales of games, thereby making it possible for other companies who took the initiative much earlier and pursued it properly to take advantage.
There is also the fact that most game makers now have websites where people can directly purchase and download games. Most people feel safer going to the official website of the game developer than the website of retail stores. All of these have led to a situation where GameStop sales are dropping and they are closing their stores to minimize payment.
The future of GameStop
If things continue to decline, GameStop will in the long run become one of the several Internet retailers of games with sales that will be a shadow of what they were making in 2017 or even as of 2020 when they are already posting losses. However, it might be possible for GameStop to overturn its fortune and strive to become a leader in the gaming industry once again. Hence, the future of GameStop will be directly linked to their actions and inactions.
The first option will be for GameStop to partner with game development companies across the world based on their former reputation, worth, and connections. With that, they might be able to get games to resell at cheaper prices that will endear customers to them once again.
The other alternative will be to become a game developer by employing game programmers or buying up a company that produces the game. They can subsequently have exclusive interesting games that will make customers start patronizing them once again.