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The Gaming World Without GameStop

Added 05 December 2019, 10:55 PM

GameStop is the world’s largest gaming retailer and it has around 5,700 stores around the world. While that huge number of retail stores may have made sense in the last decade, they have become a liability to the store as people now prefer to buy digital games and play casino slots online. Hence, the gaming giant is planning to close over 200 retail stores by the end of the year.
Initial closures are opportunistic

The closing of the stores might sound like bad news, but it’s actually an important part of GameStop’s effort to survive in the market. The company is cutting down operating expenses and other needless expenditures to stay afloat. According to Business Insider, Wedbush Analyst Michael Pachter said that if GameStop closes 200 stores this year, the operating expenses should drop by $20 million next year. The company is expecting to close a much larger group of stores, according to CFO Jim Bell. The initial closures are opportunistic he said, while the decision of next closures will be based on the location of the stores.

The decision-makers of the company are applying a more definitive and analytic approach, including profit level and transferability. This, in turn, will yield a much larger tranche of closures over the next 24 months. The first step of the reboot involves lowering the cost of salaries, advertising, taxes and nonproduction costs.

Users will miss the browsing of alleys

Most users want GameStopto stick around because it is a convenient place just to browse alleys full of physical games. Having a shop dedicated to gaming is something that most gamers want because stores like Target, Best Buy and Walmart offer a limited collection of games. Online retailers might have a better selection of the latest games, but looking through the physical alleys of GameStop allows for more surprising discoveries. The retail store can also be a gaming bargain hunter’s paradise if you’re not too picky. You can easily find a used game in the store that is cheap and totally working. Users will also miss the stores because these are the places where they go to explore new stuff and talk with other people about their favourite hobbies.

Besides losing the retail shop themselves, some gamers are worried about the knock-on effect of a world without GameStop. For a lot of users, though, they will miss the promise of GameStop more than the state of its stores as they currently exist.

GameStop won’t be totally out

With new consoles that still play game discs, GameStop’s business model isn’t completely out of the door just yet. In 2019, you can either buy digital games or game discs from stores to enjoy your favourite games. “I definitely think it’s a melting cube,” says Patcher. “For sure it’s going to go away eventually and for sure their future will be eliminated the day that gaming discs stop being manufactured.”
But this doesn’t mean that GameStop is going away just yet. With Microsoft and Sony’s 2020 gaming consoles that play discs, GameStop just got a seven-year reprieve.

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