The Failing of GameStops Sale Model

The Failing of GameStops Sales modlehttp://fortune.com/2018/06/19/gamestop-seeking-buyer/

As seen in the chart and article link GameStop has been plummeting in value lately and even have been trying to sell itself to gain financial stability from there rapidly declining popularity and sales. GameStop seems to be in great trouble do to losing close it $105.9 million dollars in the year if 2017 during the period which they were trying to get backers this all but dried up there market for buyers who now see them as a risk.

At first this seem especially strange due to the GameStop being the number one physical game retailer in the world beating out companies like Target and Best Buy. However, It all come into perspective when you realize that physical games are quickly being less and less desirable even for console gamers due to digital game stores streamlining the process. Companies like Steam, Epic Games, Microsoft and more have been eating into the market greatly. Couple this reality with the fact that GameStop’s customer service is renowned atrocious not to mention there anti-consumer policies like the terrible retuinse and high prices for preorder games. Mix this all together and the result is a volatile mess of and unnecessary and unliked story trying to stay relevant in a market that nobody need.

Using the photograph above we can the true decline started in September of 2018. However this is unsurprising due to september being the time when students go back to school and during that time a large portion of the Gamestop demographic is not focused on recreational activities, in this case video games. But, the truly damning thing we realize is that instead of being a flat drop like most stores would experience in various point if the year it seems to be a decline. This leads me to believe it’s more than just an off-season for the company but more of a fet up consumer base leaving. Even more proof of this is show in the period between late December of 2018 and late January of 2019 when a spike appeared. This sale spike secured solely because January is always the period where the most game release at once so it was almost a guarantee that anyone who sold game would make money during this time. But the most notable part is that we see an immediate drop right back back to negative slope as if the spike have never happened indicating that people really are done with this company Because if the only time you can make money is the time when you were guaranteed to make money then you are not a good business.

It not all bad though GameStop’s quite liked for there gaming accessories in there ThinkGeek branch. So the question is there do they go from here? Is this sustainable? Would it be more beneficial to rebrand as ThinkGeek and make their main income from game related accessories? Can they even sell? Or will they be delved doom to join the countless casualties of time in the Ather?

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