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[Lo-Volt]

Shares of GameStop fell more than 12 percent Friday morning after the company reported sales declines in almost all of its segments during the fourth quarter.

GameStop reported Thursday that hardware sales declined 29.1 percent, and new software sales fell by 19.3 percent for the quarter — two categories that were once key in boosting revenue for the retailer.

The Texas-based company said fiscal fourth-quarter global sales decreased 13.6 percent to $3.05 billion, while consolidated comparable sales — a metric monitored closely for retail companies by Wall Street — declined 16.3 percent, falling in line with analysts' estimates, according to FactSet.

Not only is the company warning that it'll close stores, but it won't offer quarterly or same stores sales guidance. Will GameStop be able to diversify its remaining stores in time to arrest whatever's going on?

Via CNBC.

(Sell me back to the store if old - searched for GameStop and GameStop plummets via Google before posting.)

 

[Living the Dream]

I wonder if this is why they are pushing the Switch so hard.

 

[hydrophilic attack]

close the store and sell it to someone else

 

[Ouren]

Bring in the Funkos!

 

[Seik]

Oof, that's a hard pill to swallow for them.

They must be happy that people buy a shitload of accessories with their Switch.

 

[TheOnlyMook]

"We gotta sell more Funko Pops!"

 

[Admodieus]

GCU and Amazon Prime have to be destroying GameStop's pre-order business.

 

[malfcn]

They're not competitive. The only thing they have is pre order bonus items.

 

[Danthrax]

I'm sure the Switch will have given it a Q1 boost.

It's odd that they won't give future guidance, though. I thought they were required to do that.

 

[Sapiens]

Over two decades of taking on a very anti-customer position is finally paying off for them. I will stick to amazon for the time being for physical purchases. It's so much better to not have to deal with the depressing smell and lighting of a Gamestop location.

 

[KojiKnight]

No wonder they are holding switch systems hostage to 500 dollar bundles....

 

[hydrophilic attack]

I wonder if this is why they are pushing the Switch so hard.

yeah and they'll push the scorpio too

 

[Peltz]

Is the fall of Gamestop good for gaming or bad for gaming? I really can't tell.

 

[JayEH]

They should just take the hit on new games like Amazon and Best Buy and offer a discount with their paid membership. They make most of their money on used games anyway so they just need a loss leader to get people in the store.

 

[jacobeid]

GCU and Amazon Prime have to be destroying GameStop's pre-order business.

This. There is no reason for anyone to go to GameStop for anything in today's market.

 

[FleetingFlowAir]

I wonder if this is why they are pushing the Switch so hard.

I think they've always done bundles for previous limited-stock consoles in the past, but it does seem like they're being very aggressive about making people drive all the way and get roped in for a Switch bundle.

 

[MegaManTrigger]

The mix of competition (better service offered by Best Buy/GCU and Amazon) and the PR shitstorm from exposing their cancerous circle of life program is what's killing Gamestop.

 

[BigBeauford]

They should start selling board games.

 

[DomsPlaying]

Yep, its stock is down a lot today. After hours trading last night predicted it.

Has lost more than $400 million in market valuation this year so far.

But I will say, it's attempting to diversify with Tech Brands, Collectibles, GameTrust publishing etc. It's just going to take some time for it to have more of an impact on revenue.

 

[BNGames]

"We gotta sell more Funko Pops!"

Am I the only person that genuinely hates the way all of these things look? Like who really liked these enough to make that business last as long as it has? Im sure there has to be someone.

 

[Cert.in.Death]

Don't the investors know that Switch is killing it? /s

The digital future cometh.

 

[moltonasty]

 

[Ridley327]

Bring in the Funkos!

I don't think they could possibly have more Funko Pops at this point.

Gamestop rested on its laurels for far too long and allowed for Best Buy and Amazon to get away with better deals and better service, without any of the hassle of being pestered by employees to sign up for twenty things before they even scan the damn game that they came in for. They brought this upon themselves.

 

[Trojita]

The linegraph of life.

 

[Unknown?]

Bring back FunCoLand! XD

Anyway if they go out it will kinda suck because they get niche titles Best Buy doesn't. Best Buy didn't have Guilty Gear, Yakuza, or Gravity Rush.

 

[smurfx]

This. There is no reason for anyone to go to GameStop for anything in today's market.

hell even for used games i rather take my chances with second hand amazon sellers than try gamestop.

 

[arigato]

Will never forgive them for selling an unplayable broken copy of Bully: Scholarship edition to me. Glad they're finally going out of business.

 

[Gator86]

GCU and Amazon Prime have to be destroying GameStop's pre-order business.

Yup. GameStop serves no purpose in the modern industry aside from trying to shill garbage accessories.

 

[Weebos]

Is the fall of Gamestop good for gaming or bad for gaming? I really can't tell.

Both.

 

[RealityPales]

I swear when I walk into GameStop these days, there's always a customer either buying or selling a phone.

And good lord, are there a lot of toys!

And colorful socks. Lots and lots of colorful socks.

I don't know what the fuck this place is anymore...

It's like the Neverland Ranch of retail.

 

[GOOCHY]

It couldn't happen to a "nicer" company. Their customer service is absolutely abysmal.

 

[kennyamr]

Amazon strikes again.

 

[Sephzilla]

I don't hate Gamestop as much as others do around here, but I'm not surprised by this at all. Their competition is just better at this point. Almost all of my game purchases go through Amazon Prime now and I only go to Gamestop for impulse purchases now.

 

[t26]

This. There is no reason for anyone to go to GameStop for anything in today's market.

Good luck getting collector's edition game from amazon without any damage.

 

[Deleted member 284]

No wonder they are holding switch systems hostage to 500 dollar bundles....

It's a shame because even though I pre-ordered from them my first switch, they are telling me to go online to purchase another system. What a smart thing to do.(/s) Tell me to go to an alternative storefront that is conviently next to other storefronts. Oh well, guess I'll just wait for Target/BB/Amazon or who every is going to beat Gamestop for my $$$

 

[spookyfish]

Don't the investors know that Switch is killing it? /s

The digital future cometh.

Digital future and Best Buy GCU and Amazon Prime.

Honestly, I have a preorder for Fire Emblem Echoes SE at GameStop, but ... I also secured an Amazon one with Prime 20 % off and free shipping. Guess which one's getting canceled?

Spoiler

Probably Amazon, because that's how they seem to roll.

 

[Deleted member 20415]

GCU and Amazon Prime have to be destroying GameStop's pre-order business.

I used to spend between $600-$1,000 a year at GameStop, easily a super buyer, and bought all the major games there.

Then GCU hit, and I realized I was an idiot to be loyal to GameStop. I've moved everything over to Best Buy, and In the last 18 months, I think I've spent MAYBE $12 at GameStop.

Absolutely no reason to go there anymore if they aren't going to try to be more competitive.

 

[Lo-Volt]

I also feel like it's dangerous for a retail store to become so... monocultural; if that business weakens or gets disrupted, what do you do? Never mind the fact that retail is just a hard business, we've seen these stores get grimy and smelly and offer bad service and expensive bundles and get tied to malls, which aren't so healthy in general these days!

Now they're selling T-shirts and mugs and used cell phones, and there's the Thinkgeek-branded store in Manhattan. Okay, but that's stuff we could get anywhere else too. So I guess Wall Street is asking the same question a lot of hardcore customers are: why do we need GameStop?

 

[Trojita]

GCU and Amazon Prime have to be destroying GameStop's pre-order business.

Here's your full price game, let's just add on shipping on top of that in this day and age because why not, and we'll get the game to you late.

You're welcome!

 

[sixteen-bit]

It's the circle of life.

 

[Admodieus]

Good luck getting collector's edition game from amazon without any damage.

Well I don't care about collector's editions filled with useless trinkets that clutter the house and get thrown out the next time I move, so sounds good to me!

Here's your full price game, let's just add on shipping on top of that in this day and age because why not, and we'll get the game to you late.

You're welcome!

Amazon Prime pays for itself with all of the items I buy from them, especially with their credit card that gives me 5% cash back. And I've always gotten my games ordered from them on release day. But even if it did come a day late - so what? I'm a grown man, I can wait 24 hours for a video game.

 

[BiggNife]

Am I the only person that genuinely hates the way all of these things look? Like who really liked these enough to make that business last as long as it has? Im sure there has to be someone.

No, you're absolutely not. There have been threads on gaf about Funko hatred.

Nendoroids make them look like trash in comparison.

 

[Quonny]

Is the fall of Gamestop good for gaming or bad for gaming? I really can't tell.

Net? Bad.

People complained about being able to sell their used games to places like Gamestop and thus Microsoft backed off their plans for the Xbox One. A centralized game store in theory is a good thing for the industry, it allows for things like gaming specific events, demo stations, promotions, and so on. Did Gamestop get a little scummy? Sure. But I think having a popular, powerful used game marketplace is a good thing for the industry. In theory it provides jobs for people who are passionate about games.

If Gamestop went away I think we'd see being able to sell/gift games go away faster than it likely already is.

 

[pokeystaples]

GCU and Amazon Prime have to be destroying GameStop's pre-order business.

Yup! Why go in store when I can get a prime discount and have it delivered straight to my door?

 

[Curler]

Less competition is NEVER a good thing. That's why Amazon and BB have those discounts.

 

[ironcreed]

I'm just going to drop this here:

https://www.youtube.com/watch?v=q-nQwVUKR1o

 

[Gai Murakumo]

"We gotta sell more Funko Pops!"

Yeah half of some of their stores are just filled with them. I am not surprised the latest PR scandal and the increasing of better competition as well as digital distribution is bound to take its toll on GameStop.

 

[always crazy bacon]

I wonder if this is why they are pushing the Switch so hard.

That 1st post again!

Yes, absolutely, they knew this was coming to preempted it with that Switch attach rate release.

 

[Strangelove77]

I honestly can't imagine what they could do to recover.

 

[Sectorseven]

Time for Gamestop to move into Barnes & Noble.