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[StreetsofBeige]

UPDATE 1-GameStop cuts full-year profit forecast, shares slump 21%

GameStop Corp reported a plunge in quarterly sales and slashed its full-year profit forecast on Tuesday, as the company struggles with consumers delaying purchases ahead of the launch of new consoles, sending its shares plunging 21%. Latest versions of Sony Corp's PlayStation and Microsoft...

finance.yahoo.com

UPDATE 1-GameStop cuts full-year profit forecast, shares slump 21%
ReutersDecember 10, 2019


GameStop reports disappointing Q3 results


Dec 10 (Reuters) - GameStop Corp reported a plunge in quarterly sales and slashed its full-year profit forecast on Tuesday, as the company struggles with consumers delaying purchases ahead of the launch of new consoles, sending its shares plunging 21%.

Latest versions of Sony Corp's PlayStation and Microsoft Corp's Xbox are due to be unveiled next year, with video game and console retailers also hit by the shift to downloadable or streamable games and away from physical versions.
GameStop now sees full-year earnings per share in the range of 10 cents to 20 cents, down from an earlier forecast of $1.15 to $1.30.

Comparable store sales slumped 23.2% in the third quarter, with both hardware and software sales tumbling.
Analysts had expected the company to report a 13.8% fall in same-store sales, according to IBES data from Refinitiv.
Excluding items, the company lost 49 cents per share, compared with analysts' average expectation of a profit of 11 cents.
Net loss narrowed to $83.4 million, or $1.02 per share, from $488.6 million, or $4.78 per share, from a year earlier.
The year-ago period included an impairment charge of $587.5 million.

Net sales fell about 26% to $1.44 billion, missing analysts' average estimate of $1.62 billion. (Reporting by Amal S in Bengaluru; Editing by Shailesh Kuber)

 

[CyberPanda]

RIP Gamestop

 

[StreetsofBeige]

RIP Gamestop

Don't think anything can be done.

When they started to struggle, they've tried branching out:

- Toys and merchandise (Funko and trinkets)
- Non-electronic games (like card and board games)
- Cell phones
- Tablets
- I've never seen it in stores, but online they even have tabs for other electronics and clothing

 

[TacosNSalsa]

One of the biggest factors imo was having multiple stores so damned close to one another , some in the same mall and even in line of sight of each other . I know buying EBgames probably doubled their real estate come the f*ck on , it's ridiculous . When a town has more gamestop's than McDonald's you know something is wrong

 

[Solarstrike]

 

[McRazzle]

GameStop Q3-19 Earnings Plunge (worse than analyst estimates)

Analyst didn't take into account $50 for new games at Walmart.

 

[CyberPanda]

Don't think anything can be done.

When they started to struggle, they've tried branching out:

- Toys and merchandise (Funko and trinkets)
- Non-electronic games (like card and board games)
- Cell phones
- Tablets
- I've never seen it in stores, but online they even have tabs for other electronics and clothing

Yep. They are screwed.

 

[BacklashWave534]

With the way they treat their employees and customers i can't think of a company that deserves this more. I only hope that the employees find better jobs where they are treated with respect.

 

[OmegaSupreme]

And that's why I'm glad to see them going. I'm not glad for people losing their jobs but this shit was stupid bad.

 

[OGay]

Fuck GameStop.

 

[Max_Po]

pretty sad for a retailer to go out of business and a ton of people might loose their job.

 

[Guileless]

I'll miss you when you're gone and I want a physical copy of an Atlus game I guess.

 

[Gexxy1]

With the way they treat their employees and customers i can't think of a company that deserves this more. I only hope that the employees find better jobs where they are treated with respect.

Like Mcdonalds or Walmart?

 

[WouldYouKindly]

One of the biggest factors imo was having multiple stores so damned close to one another , some in the same mall and even in line of sight of each other . I know buying EBgames probably doubled their real estate come the f*ck on , it's ridiculous . When a town has more gamestop's than McDonald's you know something is wrong

I shit you not by my mall there are two on the same road and one in the actual mall its self

 

[DunDunDunpachi]

The timing could not be better. As the old generation fades and the new generation arrives, Gamestop will have to resort to increasingly desperate coupons, deals, discounts, etc

As for Gamestop itself...

This will make it even cheaper to scoop up the PS4 games from this past gen that I haven't yet pulled the trigger on.

 

[UltimateUnknown]

I don't know about others but there is literally no reason to go to Gamestop anymore.

I have most major retailers at my local mall, including Gamestop and you can buy brand new games at Walmart for $50, and even find good deals at Target, while the prices for games are always jacked at Gamestop - the place where you're actually meant to be buying games.

Plus with digital being an ever increasing presence, there just isn't any reason to use Gamestop anymore, unless they choose to actually compete.

 

[Pagusas]

It’s good to see poorly managed, bad businesses disappear. There stores are always dirty, there policies always trash, and there corporate management is insane. The only people i feel sorry for are the employees who are just trying to make a wage.

 

[angelic]

Playing out almost identically to the death of games mags. The slow, tortured, spiralling, painful removal of the oxygen that keeps Game shops alive, like someone in the squeezing kill grip of a giant boa constrictor. In fact, I did a picture.

 

[mckmas8808]

One of the biggest factors imo was having multiple stores so damned close to one another , some in the same mall and even in line of sight of each other . I know buying EBgames probably doubled their real estate come the f*ck on , it's ridiculous . When a town has more gamestop's than McDonald's you know something is wrong

This 100 times over.

 

[Zephir]

I don't know about others but there is literally no reason to go to Gamestop anymore.

The positive thing about a retailer like Gamestop is that, no matter how rare a game is, his value will never be higher than his launch price. I was able to find and buy a couple of old rare games that online, by privates or small online stores, were sold at triple that price. The only exception was when they raised the price of Zelda Twilight Princess and Smash Brawl due to the Wii homebrew glitch of whatever that was.

Indeed, some of their business moves regarding pre-owned games are not good at all: my local indie game store has better prices and selection and, most importantly, it doesn't obey to the rule that preowned Nintendo games can be selled at just 5€ less than base price.

It's a matter of "finding a good deal by looking everywhere" and I can honestly say that Gamestop provided me with good deals sometimes (it may help that i'm not in America, so i don't have your big store chains with their gaming promotions)

 

[Ten_Fold]

Too many gamestop locations, I have 3 near me and it's about a mile apart from each other. I'm not sure what can they do, online shopping is huge, and alot of people go to walmart or even target if they wanna since they have a lot more than just games. I think the best bet is to really decrease the number of stores that and offer better shit for being a pro member.

 

[NickFire]

Don't think anything can be done.

When they started to struggle, they've tried branching out:

- Toys and merchandise (Funko and trinkets)
- Non-electronic games (like card and board games)
- Cell phones
- Tablets
- I've never seen it in stores, but online they even have tabs for other electronics and clothing

My understanding is they also took on serious debt on some endeavors. Absolutely crazy to me that no one in that company ever stopped and said, before we try all these different things (than selling video games), why don't we just try dropping the price of used games and selling new games a few bucks cheaper than MSRP to drive gamers to our stores.

Honestly, what's the real point in going there unless you got a giftcard for a present, want something used, or need hardware that Best Buy /Walmart are out of stock on (and you don't want to wait 0-2 days for by buying it from Amazon)?

 

[Slings and Arrows]

Shut down 90% of Gamestop's

Turn it into a niche shop for games at a reasonable price

Drop the toys, phones, tablets etc

Add in nostalgia items

earn revenue from having an 'arcade' section where people can pay to play the latest games, including VR or LAN with one-another.

 

[ESPOMAN]

Not too surprising when people can just get everything at Amazon. I hate going to Gamestop because I know they are supposed to be having the people keep asking for the card is annoying.

 

[Ban Puncher]

There are rumblings that EB Games Australia and New Zealand are growing increasingly frustrated with their American parent GameStop as the business is still profitable down here in the 'backwater boonies' but all of the money is being taken out of the respective local economies and being used to prop up a struggling corporate back in America. With generally slower internet infrastructure, digital hasn't caught on down here in both countries for games the same as it has elsewhere around the world. Couple this with physical copies of games usually being available at launch in stores at considerably cheaper prices because of retail competition (eg $100 AUD for digital versus $70 AUD physical), EB Games still sees a robust trade - especially since you can trade a disc/cartridge in at your leisure (admittedly, for a pittance) but are unable to see any kinds of return on your digital purchases. They also appear quicker and more willing to adapt to market changes and diversify into other areas such as the 'EB Expo' gaming convention. But having all your hard work being siphoned off overseas to try and plug the rapidly appearing holes in a sinking ship has led to the local operations becoming disenchanted and even out-right hostility to GameStop Corp. which may possibly lead to the AU and NZ subsidiaries breaking away and becoming independent from the US company.

 

[cucuchu]

Better use all your gamestop gift cards soon then.

I have over $200 in gift cards that I was hoping to use to reserve a PS5 or XBOX next but I legit do not know if GS will be around when they release. I imagine I'm not the only one thinking this and it will only hurt their bottom line when potential customers go elsewhere because they don't want their preorders to disappear.

 

[ExpandKong]

Anybody here with real business savvy? I get that it doesn't look good but I'm wondering what exactly this means and when I should start looking for liquidation sales

 

[Antwix]

Shut down 90% of Gamestop's

Turn it into a niche shop for games at a reasonable price

Drop the toys, phones, tablets etc

Add in nostalgia items

earn revenue from having an 'arcade' section where people can pay to play the latest games, including VR or LAN with one-another.

I'm not sure if they are still doing it, but I remember seeing an article of sorts that showed their plan to have just that. I'm not sure the details behind it, but there were like couches with TVs and shit.

 

[ChadDaddyWarden]

Just look at their prices. Who in their right mind would spend $55 for a preowned game? Not to mention they sell gutted copies of games as "new" and have annoying employees who would drop to their knees to get you to preorder something.

I don't know why anyone still shops there when you can find games cheaper literally anywhere else and you can sell your games for 2-3x more on offerup, letgo or CL and get cash instead of trade credit.

 

[NickFire]

Better use all your gamestop gift cards soon then.

I have over $200 in gift cards that I was hoping to use to reserve a PS5 or XBOX next but I legit do not know if GS will be around when they release. I imagine I'm not the only one thinking this and it will only hurt their bottom line when potential customers go elsewhere because they don't want their preorders to disappear.

I certainly will not be pre-ordering my next console there unless its like $5. Even then though, I'm more concerned about getting it at launch than $5, so probably somewhere else no matter what. And smart move on cashing out gift cards IMO.

 

[ArthriticZombie]

I have a collector's edition of Cyberpunk 2077 Preordered on their website. Please stay in business until I have that. Thank you.

 

[mave198]

Like another poster stated already. Too many stores too close to each other.

In downtown Brooklyn there used to be 3 within about A mile of each other, with 2 within minutes of each other on Fulton Street until one closed down recently.

 

[Afro Republican]

I lost $30,000 on Gamespot when that happened and it's only going to get worse, we need to show that we aren't fools guys! SELL ALL YOUR SHARES IMMEDIATELY, SELL!! SELL!!

DON'T STOP selling your shares until Gamespot is only .009 cents per share, that will teach them a lesson. Trust me, this is the only way and there is no ulterior motive whatsoever in this highly hyperbolic post.

THEY ARE DOOMED!!! SELL ALL YOUR SHARES!!! DOOMED!!! BANKRUPTCY BY CHRISTMAS? POSSIBLE, RESURRECTION BY NEW YEARS? YOU'RE DELUSIONAL. SEE THAT RHYMED THAT'S WHY i AM A RAPPER.

THIS JUST IN, STADIA HAS NO USED GAMES, GAMESTOP PLUNGE ANOTHER 545% IN 4 MINUTES, SELL ALL YOUR SHARES!!!

I hope you take this warning seriously, btw don't forget to shell all your shares we need than sub 1 cent stock price for immediate relief and revenge on Gamestop. Do not be skeptical and curious at how hyperbolic this post is.

Thank you.

 

[Dane]

My country doesn't have gamestop, but i've hearing stories for years.

-Pay 10% of the used game price compared to a new copy, sells it for 90%.
-Started to sell stuff like Funko and card games to cover the losses.
-Too many stores close to each other (like a street away).
-Shitty service: Unprepared staff and annoying methods to try to convince the customer to buy something else, even magazine subscriptions.

Also, back in 08 they stated their opinion against digital games, the reason why its because developers could sell it for cheaper than physical. That's why games costs the same on both fronts.

 

[Afro Republican]

Anybody here with real business savvy? I get that it doesn't look good but I'm wondering what exactly this means and when I should start looking for liquidation sales

Despite posts on here, Gamestop still had enough cash to lose money until 2021, assuming they haven't found a new plan that sticks to the ceiling yet. Biggest issue with Gamestop is they don't really have revenue generating, uh, anything and can't offset costs. If they want to survive they need to change their format so they can start making profits without losing money or going into debt, but the track record of corporate is really bad, their margins are a disaster, they are currently stuck on several contracts based on items that don't help them that they don't know how to get out of or leverage, they keep trying to lose money to make money which they can't do anymore since they no longer have money, and they people are shocking their reserves, writing formal letters of charge against the board, and shorting the hell out of them.

So the real thing to do is sell all your stocks or tell people to sell all their stocks, that is the best way to help, as when the stock price is below 1 cent massive 90% off sales for everyone, no suspicion here, thank you.

 

[Solarstrike]

You know shit was bad when they'd ask if you wanted to buy a subscription to Game Informer with your leftover change. Pretty sure i have a subscription until 2048

 

[Rest]

Not to mention they sell gutted copies of games as "new"

I asked if they had a sealed copy of a game I wanted a while ago. Instead of just telling me no, he went on this diatribe about how they only had one copy, that was the copy on the shelf, and if they only had one copy it was open. I felt like telling him "I've been buying video games for 20 years, I understand the GameStop 'if you open it it's used, if we open it it's new' scam. Just tell me if you have a sealed one or not."

 

[Airola]

All Gamestops are going to be gone from Scandinavia and Finland by the end of 2020.

Now I understand why the guy in Gamestop asked me over and over again if I'd want to pay a bit more to get warranty to a bunch of cheap Wii U games I bought a couple of months ago. Dude was trying to say how it's great to have the warranty because if a disc breaks it's their job to find me a new one to replace it. I told him no and no and no and no and no and he still tried to press me into getting the warranty. It was super awkward.

Now I understand that of course they want the few extra euros from each game because they know they'll be gone before anyone comes to ask for a replacement

 

[octiny]

They will hold their head above water until next-gen arrives by pumping the stock, then file for bankruptcy sometime '23' but not until a lot of stock is carefully/slowly off loaded @ a much higher price due to the temporary 1-2 revenue bump they'll receive from new console generation. It won't go sky high like previous gens, but it'll be an aggressive bump nonetheless (high teens to low 20's).

 

[Solarstrike]

Toys R Us and Gamestop should merge. This newly-branded store should not offer trade-in's and focus on selling gaming related stock to include toys, games, models (Revell, MetalEarth, etc), action figures/collectables (McFarlane Toys, NECA, LEGO, etc), computer related components and displays (AMD, Nvidia, ASUS,) I think there are only two Toys R Us stores in the States left. New ownership wants to re-design and re-launch more stores in the near future.

 

[BusierDonkey]

The Canadian verison of GameStop has gone to shit to the point that the staff at local store, which has long been a good place to go to shoot the shit with other gamers, has become completely jaded. The store has become almost entirely garbage Pop toys, mugs, backpacks, and dollar store quality shit. They were quite loud about their opinion of these changes when I asked what the fuck happened "I dunno man, we used to be a fucking game store, now we sell shit". They've started turning games sideways on the shelves to free up more space meaning the remaining customers all huddle around the few shelves left for games creating the most claustrophobic shopping experience ever. They've doubled down on the stupid accessories plan it seems. Gamestop deserves it's fate. I just feel bad for the poor guys that corporate is dragging down with it.

Luckily we have a successful local chain here that's scooping up EBGames scraps.