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Ky's Korner #12: GameStop Closings...for real? Presented by Saljack Enterprises. Gaming. Media. Entertainment.

Hey there Friends!

So what is this about GameStop losing business?

So much that they are looking to close roughly 150 stores this year??

How did this happen?

Most of us can remember when GameStop was our only place to go for great games and good deals… For me it still is. I mean…I know I can head over to GameStop and find pretty much anything I need. I know that’s where to find the best selection of games and accessories. Ordering online with GameStop is even better, there you can find even more merchandise and even more deals.

So when I heard this news… it really made me sad. It’s certainly a day I thought would never happen. I actually heard this a few months back and I was hoping it was just a rumor but, in fact, I thought it had to be.

Not GameStop?? Really!?

Unfortunately, the numbers do not lie. I just thought they were too big… had the market cornered kind of situation.

Sadly, my friends…. It has been reported that GameStop certainly is closing 150 store locations… which calculates to somewhere around 3 percent of its business total. Not huge numbers but still surprising.

Between 2009-2015, retail sales for the store dropped from 80% down to only 44%. All thought to be due to very low holiday sales. Meanwhile, digital sales were through the roof from 20% to 56% of the industry. Will GameStop be an online only store in the near future? Makes you wonder, though, doesn’t it?

GameStop has 75,000 shops globally so losing 150 stores may not seem like that much but it could be just the beginning and as a long time loyal customer, I truly hope not. Slive.com was reported as saying that the dramatic drop in sales was mainly due to increased competition from online retailers, causing a $3.05 billion dollar loss during GameStop’s fourth quarter in 2016.

You guys… this just really blows my mind. GameStop set the standard for gaming stores… and let’s face it our options are slim except for shopping online right now as it is. My concern is that eventually, we won’t get the same GameStop experience.

How many of you feel right at home walking through the doors of your local GameStop. I certainly do… it almost creates its own sense of community. A place where we can always go for advice… a place where we can go to with all our gaming needs. I may be old school but, I don’t want to lose that.

Paul Raines, CEO of GameStop says, “The video game category has been weak, especially in the later half of 2016, as the console cycle ages. Looking into 2017 technology brands and collectibles are expected to generate another year of strong growth and new hardware innovation in the video gaming category looks promising.” This gives me hope. It seems they have a plan in place to work with consumers so that they can save their sales.

Smart move GameStop!

According to Raines, additional gaming sales also struggled as Sony’s PlayStation and Microsoft’s Xbox have not been updating their consoles nearly as much. Game creators have been focusing a lot more on mobile products, streaming and as we talked about recently virtual reality development. As we know this is the hotspot of the gaming industry right now.

The retailer is definitely betting on the new Nintendo Switch… they are hoping for it be as big as the Wii, hoping the sales will be as big too.  “The switch has provided a dramatic lift in traffic among stores and has real potential to be very Wii-like in its abilities to expand the gaming category from core to broad audiences.” Raines acknowledged recently.

Despite the decrease in sales, GameStop, the Texas-based store, has plans to open new stores in 2017 as well. This may have you a bit confused, as it did me… at first…

The company says it plans to open up but, with a different selling point. They plan to open 35 collectible stores and 65 new technology brand stores. The company states that the closing of these 150 GameStop stores is all part of its annual strategy to weed out the locations that are not turning a profit anymore.

Back in 2008 most of GameStop’s profits came from in store sales. Since then shopping online has become more mainstream, this is what I believe to be the main cause of the decline in sales. As far as my research goes anyway.

Well… all I can say my friends is this… let’s get out there again and support our local GameStop’s! For all you die-hard online shoppers… The next time your shopping for a new game, think about this blog. Get out there! Make some connections… or just grace your local store with your awesome presence, they will be more than happy to have you!

As always… I SOOOO appreciate you stopping by Ky’s Korner!

Until next time friends!


To read more from Ky Lynn click here

DISCLAIMER: THE VIEWS AND OPINIONS EXPRESSED IN THIS POST ARE SOLELY THOSE OF THE AUTHOR. THESE VIEWS AND OPINIONS DO NOT NECESSARILY REPRESENT THOSE OF SALJACK ENTERPRISES, IT’S STAFF, AND/OR ANY/ALL CONTRIBUTORS TO THE SALJACK ENTERPRISES WEBSITES. SALJACK ENTERPRISES MAKES NO WARRANTY OR REPRESENTATION REGARDING, DOES NOT ENDORSE, IS NOT AFFILIATED WITH AND IS NOT IN ANY WAY RESPONSIBLE FOR THE LINKED WEBSITES OR ANY CONTENT THAT APPEARS ON IT. IF YOU DECIDE TO VISIT ANY LINKED WEBSITE, YOU DO SO AT YOUR OWN RISK, AND IT IS YOUR RESPONSIBILITY TO REVIEW THE TERMS OF USE OF THE RELEVANT LINKED WEBSITE.

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23 thoughts on “Ky’s Korner #12: GameStop Closings…for real??

  1. Marc Paolo says:

    Well sad truth is the new generation prefers convenience so they want to get things done at its easiest. But GameStop might not be really closing, just upgrading.

    Liked by 1 person

  2. Charles says:

    This is heartbreaking! I still want to go and shop at stores than online. Online they tend to mix up stuff. Well, I still hope for the best, GameStop!

    Liked by 1 person

  3. Mau says:

    I could hardly say I’m a GameStop customer but this just made me sad! Unfortunately, products evolve, how people buy stuff changes and companies close branches all the time. I’m wishing Gamestop the best and I hope they could turn the business around!

    Liked by 1 person

  4. Dark Vader says:

    Hardly any knowledge about it but I think it’s a sad news that this didnt work now.

    Liked by 1 person

  5. Rebi says:

    I hope they could still find other ways to make things work for their company, like new innovations that are gonna contribute in the game industry.

    Liked by 1 person

  6. kaka135 says:

    I did not know about this. Though 150 over 75,000 shop does not seem a lot, 150 stores closing down is still a big thing. I hope GameStop will find its ways out of this struggling time.

    Liked by 1 person

  7. Antony says:

    wow gamestop has closed 150 of its stores ? Looks like they have difficulty competing with steam.

    Liked by 1 person

  8. Oswald says:

    Well, this is rather inevitable. I mean, everything seems to be going online nowadays. I believe the GameStop’s rival went out earlier. Blockbuster was the name I think. Used to rent out games from there before buying my own copy.

    Liked by 1 person

  9. carelesskimjangre says:

    They are closing 150 stores? How many stores they have? For sure they will retain some branches? Or they do have 150 stores all in all. This is a sad news to game enthusiasts. I wonder if they have competition, like a really tough competitor out there.

    Like

  10. Virgilio Jaclopan Jr. says:

    It’s a business move. It’s not like they’re totally closing the company. And yes, what is 150 to 75,000 right? The landscape of the gaming industry has changed, and much of it has to do with the internet. GameStop has to adapt to the changes in order to survive.

    Liked by 1 person

  11. Audreyna says:

    I feel you, Ky Lynn. It’s sad if it’s the only GameStop in your city. So many memories, eh?

    Liked by 1 person

  12. Gray Fullbuster says:

    AS technology advances work becomes less, In effect a decrease in physical things. It is sad but a true sense of reality.

    Liked by 1 person

  13. Erza Scarlet says:

    While we all can relate to this. It is also worth mentioning that it evolves in time too. It all depends on human creativity. I Mean here it is so hot in summer but people use it for business. Take that as an example.

    Liked by 1 person

  14. Danny Luei says:

    I know nothing about GameStop, but what I heard from other people, they have said that GameStop deserve it just because they have offered a terrible service … No idea what they mean cos no GameStop in my country, lol.

    Liked by 1 person

  15. Lisa Nataliany says:

    So, this is good news or bad news … I’m sure there will be pros and cons of all of this. 150 of 75,000 stores only 0.2% not even reach 1%. They might just have closed it which can not produce the maximum profit, and nothing else …

    Liked by 1 person

  16. Phineas says:

    Say it ain’t so! I love GameStop! At least, the one nearest to my apartment. They always met my gaming needs… Plus, there’s is this cute girl that works there that I intend to ask out… But if they are closing already… Nooo!!!

    Liked by 1 person

    1. Ky Lynn says:

      Haha I know right! I doubt if they are closing the one by your house lol but either way get in that store and ask that girl out!! Life is short… Just do it friend!! Oh and let me know how it goes!! 😉

      Like

  17. Quinn says:

    They would probably stay afloat if they switch to mainly an online store. Not as tangible as most gotten used to but the business may go on. Competition is just gonna be really tough though!

    Liked by 1 person

    1. Ky Lynn says:

      Yes, I agree they need to expand their online business but that’s a fine line to walk. Don’t want to over due it and cause the stores to lose business. Maybe I’m just concerned by it because I frequent my GameStop often lol. I just like the in store experience for some reason. But yes its a tough market and they have to find a way to keep up. I’m confident they have a great plan going to do just that!

      Like

  18. Celine says:

    I agree Ky Lynn…nothing can replace that in-store experience. Sad that it has become a rarity nowadays due to these closures and online shopping. I guess we all have to move on too.

    Liked by 1 person

  19. Doreen says:

    I reckon they will be just an online store in the near future. It’s the trend nowadays. Having no physical store the maintain means very big savings for them.

    Liked by 1 person

  20. Alex Summers says:

    I do not have Game stop here so I do not know what the deal is. However I can relate to this because it is happening all over game stop or not.

    Liked by 1 person

  21. Scott Summers says:

    Going online is a trend but the problem is it takes the human factor out of the equation. This will cause people to loose jobs, A sad but true reality.

    Liked by 1 person

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