• Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

GameStop Downsizes, Over 300 Stores to Permanently Close

btarunr

Editor & Senior Moderator
Staff member
Joined
Oct 9, 2007
Messages
46,283 (7.69/day)
Location
Hyderabad, India
System Name RBMK-1000
Processor AMD Ryzen 7 5700G
Motherboard ASUS ROG Strix B450-E Gaming
Cooling DeepCool Gammax L240 V2
Memory 2x 8GB G.Skill Sniper X
Video Card(s) Palit GeForce RTX 2080 SUPER GameRock
Storage Western Digital Black NVMe 512GB
Display(s) BenQ 1440p 60 Hz 27-inch
Case Corsair Carbide 100R
Audio Device(s) ASUS SupremeFX S1220A
Power Supply Cooler Master MWE Gold 650W
Mouse ASUS ROG Strix Impact
Keyboard Gamdias Hermes E2
Software Windows 11 Pro
GameStop announced that it will permanently close down over 300 brick-and-mortar stores in an effort to "de-diversity" its business. The company closed down 331 stores last year, bringing the store strength down to 5,500 locations. Much of GameStop's focus markets are those parts of the U.S. with sub-optimal Internet bandwidth that blunts the advantage digital retailers like Steam have over it. Besides game hard-copies and coupons for cash, GameStop also retails game consoles and accessories. The earnings call that included this announcement also had a comment about a possible delay in the release of PlayStation 5 and Xbox Series X as supply-chains around the world are severely disrupted, not to mention people's disposable incomes.



View at TechPowerUp Main Site
 

Frick

Fishfaced Nincompoop
Joined
Feb 27, 2006
Messages
18,914 (2.86/day)
Location
Piteå
System Name Black MC in Tokyo
Processor Ryzen 5 5600
Motherboard Asrock B450M-HDV
Cooling Be Quiet! Pure Rock 2
Memory 2 x 16GB Kingston Fury 3400mhz
Video Card(s) XFX 6950XT Speedster MERC 319
Storage Kingston A400 240GB | WD Black SN750 2TB |WD Blue 1TB x 2 | Toshiba P300 2TB | Seagate Expansion 8TB
Display(s) Samsung U32J590U 4K + BenQ GL2450HT 1080p
Case Fractal Design Define R4
Audio Device(s) Line6 UX1 + some headphones, Nektar SE61 keyboard
Power Supply Corsair RM850x v3
Mouse Logitech G602
Keyboard Cherry MX Board 1.0 TKL Brown
VR HMD Acer Mixed Reality Headset
Software Windows 10 Pro
Benchmark Scores Rimworld 4K ready!
Joined
Jun 28, 2016
Messages
3,595 (1.27/day)
How is this even possible, that they manage to run 5000 stores in US? :eek:

That said, market for games in US is enormous. ~$36B in 2018 on games (including subscriptions etc).
But assuming there are 50 mln active gamers (who own a console or a gaming graphics card), that's $720/person... Sick :eek:
 

newtekie1

Semi-Retired Folder
Joined
Nov 22, 2005
Messages
28,472 (4.25/day)
Location
Indiana, USA
Processor Intel Core i7 10850K@5.2GHz
Motherboard AsRock Z470 Taichi
Cooling Corsair H115i Pro w/ Noctua NF-A14 Fans
Memory 32GB DDR4-3600
Video Card(s) RTX 2070 Super
Storage 500GB SX8200 Pro + 8TB with 1TB SSD Cache
Display(s) Acer Nitro VG280K 4K 28"
Case Fractal Design Define S
Audio Device(s) Onboard is good enough for me
Power Supply eVGA SuperNOVA 1000w G3
Software Windows 10 Pro x64
How is this even possible, that they manage to run 5000 stores in US? :eek:

That said, market for games in US is enormous. ~$36B in 2018 on games (including subscriptions etc).
But assuming there are 50 mln active gamers (who own a console or a gaming graphics card), that's $720/person... Sick :eek:

$720/person isn't really that much. That's $60 a month on games, so basically one new game a month. I know people that buy something game related every single time they get paid.
 
Joined
Jun 13, 2019
Messages
474 (0.27/day)
System Name Fractal
Processor Intel Core i5 13600K
Motherboard Asus ProArt Z790 Creator WiFi
Cooling Arctic Cooling Liquid Freezer II 360
Memory 16GBx2 G.SKILL Ripjaws S5 DDR5 6000 CL30-40-40-96 (F5-6000J3040F16GX2-RS5K)
Video Card(s) PNY RTX A2000 6GB
Storage SK Hynix Platinum P41 2TB
Display(s) LG 34GK950F-B (34"/IPS/1440p/21:9/144Hz/FreeSync)
Case Fractal Design R6 Gunmetal Blackout w/ USB-C
Audio Device(s) Steelseries Arctis 7 Wireless/Klipsch Pro-Media 2.1BT
Power Supply Seasonic Prime 850w 80+ Titanium
Mouse Logitech G700S
Keyboard Corsair K68
Software Windows 11 Pro
Didn't Sony screw over GameStop not too long ago, in regards to not allowing them to sell PSN gamecards?

I would have pulled all of Sony's shit from the shelves in protest. And THEN went bankrupt.
 
Joined
Jun 28, 2016
Messages
3,595 (1.27/day)
$720/person isn't really that much. That's $60 a month on games, so basically one new game a month. I know people that buy something game related every single time they get paid.
Well exactly, that's one new game a month. On average!
I may have been buying games so often when I was 12. Nowadays I buy 2-3 games a year (probably like most gamers in their 30s).

You know... I have absolutely nothing against people gaming for few hours a day. I've been there. And if someone can afford spending $200+ per month on games, nothing wrong with that either.
But the way I see this, there just aren't that many good games...

Also, I though that nowadays most avid gamers don't play multiple single-player titles, but focus on a handful (...single...) multi-player game.

I'd love to see some Steam sales statistics. :eek:
 
Joined
Oct 18, 2013
Messages
5,415 (1.42/day)
Location
Everywhere all the time all at once
System Name The Little One
Processor i5-11320H @4.4GHZ
Motherboard AZW SEI
Cooling Fan w/heat pipes + side & rear vents
Memory 64GB Crucial DDR4-3200 (2x 32GB)
Video Card(s) Iris XE
Storage WD Black SN850X 4TB m.2, Seagate 2TB SSD + SN850 4TB x2 in an external enclosure
Display(s) 2x Samsung 43" & 2x 32"
Case Practically identical to a mac mini, just purrtier in slate blue, & with 3x usb ports on the front !
Audio Device(s) Yamaha ATS-1060 Bluetooth Soundbar & Subwoofer
Power Supply 65w brick
Mouse Logitech MX Master 2
Keyboard Logitech G613 mechanical wireless
Software Windows 10 pro 64 bit, with all the unnecessary background shitzu turned OFF !
Benchmark Scores PDQ
Much of GameStop's focus markets are those parts of the U.S. with sub-optimal Internet bandwidth

So in other words, they are just taking advantage of those who live in underserved/rural/urban areas and can least afford to pay their outrageous prices and crappy piss-ant customer service....

PS... if you have ever had the unfortunate displeasure to visit one of their stores, you will probably agree with the following:

DIE Gamestop, DIE ..:mad:..:shadedshu:..:twitch:
 
Joined
Mar 10, 2015
Messages
3,984 (1.20/day)
System Name Wut?
Processor 3900X
Motherboard ASRock Taichi X570
Cooling Water
Memory 32GB GSkill CL16 3600mhz
Video Card(s) Vega 56
Storage 2 x AData XPG 8200 Pro 1TB
Display(s) 3440 x 1440
Case Thermaltake Tower 900
Power Supply Seasonic Prime Ultra Platinum
But the way I see this, there just aren't that many good games...

We don't agree on a lot but this is one of them. Most games have been meh but there have definitely been a few gems.
 
Joined
May 11, 2016
Messages
261 (0.09/day)
Never good to hear since this will undoubtedly affect a lot of Gamestop employees, and from what I've heard a lot of them have already been going above and beyond to try to save their stores.

But Gamestop got way, way, oversaturated with stores. I live in a metro area with around 300k population within 20 miles, so decent size but definitely not a major city. And at one point there were 7 Gamestops in town. Not kidding. A couple of them closed but I think we still have 5. And that's not taking into account local Best Buys, Targets, WalMarts, and a regional videogame store chain with 2 local stores. Gamestop can survive, but we don't need one every 2 miles like Subway.
 
Joined
Mar 16, 2017
Messages
1,637 (0.64/day)
Location
Tanagra
System Name Budget Box
Processor Xeon E5-2667v2
Motherboard ASUS P9X79 Pro
Cooling Some cheap tower cooler, I dunno
Memory 32GB 1866-DDR3 ECC
Video Card(s) XFX RX 5600XT
Storage WD NVME 1GB
Display(s) ASUS Pro Art 27"
Case Antec P7 Neo
Didn't Sony screw over GameStop not too long ago, in regards to not allowing them to sell PSN gamecards?

I would have pulled all of Sony's shit from the shelves in protest. And THEN went bankrupt.
Wasn’t it GameStop that was pulling promotional items out of new packaging because it threatened their business model?
 
Joined
Jan 19, 2018
Messages
183 (0.08/day)
Processor AMD 5800X
Motherboard MSI X570 Tomahawk
Memory G.Skill 32GB
Software Windows 10
Well exactly, that's one new game a month. On average!
I may have been buying games so often when I was 12. Nowadays I buy 2-3 games a year (probably like most gamers in their 30s).

You know... I have absolutely nothing against people gaming for few hours a day. I've been there. And if someone can afford spending $200+ per month on games, nothing wrong with that either.
But the way I see this, there just aren't that many good games...

Also, I though that nowadays most avid gamers don't play multiple single-player titles, but focus on a handful (...single...) multi-player game.

I'd love to see some Steam sales statistics. :eek:
Don't take this the wrong way but you sound like an old politician who still thinks gamers are all 15 year old boys. The average gamer is in their 30's as we're the ones who grew up gaming in the 80's, 90's, 00's and kept up with the hobby (quick aside, it bothers the hell out of me that the ESA doesn't know the different generations (Gen X is 1965-1980, Millennials are 1981-1996, Gen Z are 1997-2012). Anecdotally, most of the gamers I know are in the 30's/40's and for the most part we all mostly play quality single-player games and there may be 1 or 2 multiplayer games that groups may get together to play. As we get older, there's way more of a focus on single-player titles with strong narratives. And contrary to what you said, there are many great games that fit that criteria.
 
Joined
Jun 28, 2016
Messages
3,595 (1.27/day)
Don't take this the wrong way but you sound like an old politician who still thinks gamers are all 15 year old boys.
Absolutely not. But I assume older people just don't have time for it. You disagree?
Anecdotally, most of the gamers I know are in the 30's/40's and for the most part we all mostly play quality single-player games and there may be 1 or 2 multiplayer games that groups may get together to play. As we get older, there's way more of a focus on single-player titles with strong narratives. And contrary to what you said, there are many great games that fit that criteria.
Nothing unusual about it.
First of all: I bet you're in roughly that age, so it's not surprising that most of the gamers you know are in that age. :)
Second: PC gaming was a big thing in the 90s and that group keeps playing.

Teenagers today just don't play games like we used to 20 years ago. They're more into smartphone gaming, Fortnite, LoL and things like that.
If Baldur's Gate or Civilization launched today, they would become niche and forgotten games. It just isn't interesting to kids AD 2020.
 

newtekie1

Semi-Retired Folder
Joined
Nov 22, 2005
Messages
28,472 (4.25/day)
Location
Indiana, USA
Processor Intel Core i7 10850K@5.2GHz
Motherboard AsRock Z470 Taichi
Cooling Corsair H115i Pro w/ Noctua NF-A14 Fans
Memory 32GB DDR4-3600
Video Card(s) RTX 2070 Super
Storage 500GB SX8200 Pro + 8TB with 1TB SSD Cache
Display(s) Acer Nitro VG280K 4K 28"
Case Fractal Design Define S
Audio Device(s) Onboard is good enough for me
Power Supply eVGA SuperNOVA 1000w G3
Software Windows 10 Pro x64
Absolutely not. But I assume older people just don't have time for it. You disagree?
Yes, I very much disagree. Adults still have free time, and my generation, that grew up gaming, still game in their free time as entertainment. Older generations golfed, or went to baseball games, or went to the movies, etc. Younger generations play games, even if they are in their 30s and 40s now. And we also tend to have more disposable income too.
 
Joined
May 24, 2007
Messages
5,401 (0.88/day)
Location
Tennessee
System Name AM5
Processor AMD Ryzen R9 7950X
Motherboard Asrock X670E Taichi
Cooling EK AIO Basic 360
Memory Corsair Vengeance DDR5 5600 64 Gb - XMP1 Profile
Video Card(s) AMD Reference 7900 XTX 24 Gb
Storage Samsung Gen 4 980 1 TB / Samsung 8TB SSD
Display(s) Samsung 34" 240hz 4K
Case Fractal Define R7
Power Supply Seasonic PRIME PX-1300, 1300W 80+ Platinum, Full Modular
GameStop is of gaming as Blockbuster is of movies.
 
Joined
May 24, 2007
Messages
5,401 (0.88/day)
Location
Tennessee
System Name AM5
Processor AMD Ryzen R9 7950X
Motherboard Asrock X670E Taichi
Cooling EK AIO Basic 360
Memory Corsair Vengeance DDR5 5600 64 Gb - XMP1 Profile
Video Card(s) AMD Reference 7900 XTX 24 Gb
Storage Samsung Gen 4 980 1 TB / Samsung 8TB SSD
Display(s) Samsung 34" 240hz 4K
Case Fractal Define R7
Power Supply Seasonic PRIME PX-1300, 1300W 80+ Platinum, Full Modular
Not quite. However, your perspective is understandable.

Their revenue is slowly fading due to digital subscriptions and purchases. As technology advances, games will move to the cloud via streaming and distribution. Physical copies of games really won't make sense. Further, games are simply becoming too large for physical media.

Physical copies of music have essentially collapsed to a 5-10% market share. Movies are following suit.

I don't think there is any reading between lines.
 
Last edited:
Joined
Jul 5, 2013
Messages
25,559 (6.52/day)
Their revenue is slowly fading due to digital subscriptions and purchases.
True, but there is still a demand for physical media that is unlikely to completely fade away. Then there is systems and accessories, not everyone wants to buy them online or from wally world.
 
Joined
Aug 20, 2007
Messages
20,713 (3.41/day)
System Name Pioneer
Processor Ryzen R9 7950X
Motherboard GIGABYTE Aorus Elite X670 AX
Cooling Noctua NH-D15 + A whole lotta Sunon and Corsair Maglev blower fans...
Memory 64GB (4x 16GB) G.Skill Flare X5 @ DDR5-6000 CL30
Video Card(s) XFX RX 7900 XTX Speedster Merc 310
Storage 2x Crucial P5 Plus 2TB PCIe 4.0 NVMe SSDs
Display(s) 55" LG 55" B9 OLED 4K Display
Case Thermaltake Core X31
Audio Device(s) TOSLINK->Schiit Modi MB->Asgard 2 DAC Amp->AKG Pro K712 Headphones or HDMI->B9 OLED
Power Supply FSP Hydro Ti Pro 850W
Mouse Logitech G305 Lightspeed Wireless
Keyboard WASD Code v3 with Cherry Green keyswitches
Software Windows 11 Enterprise (legit), Gentoo Linux x64
True, but there is still a demand for physical media that is unlikely to completely fade away. Then there is systems and accessories, not everyone wants to buy them online or from wally world.

There is, but that demand can't sustain a chain.

Case in point: There is still one blockbuster open in Bend, Oregon. It's a fully functional blockbuster, and is run mostly for then novelty value, but they do rentals too. There is just that much demand, but no more.

 
Joined
May 24, 2007
Messages
5,401 (0.88/day)
Location
Tennessee
System Name AM5
Processor AMD Ryzen R9 7950X
Motherboard Asrock X670E Taichi
Cooling EK AIO Basic 360
Memory Corsair Vengeance DDR5 5600 64 Gb - XMP1 Profile
Video Card(s) AMD Reference 7900 XTX 24 Gb
Storage Samsung Gen 4 980 1 TB / Samsung 8TB SSD
Display(s) Samsung 34" 240hz 4K
Case Fractal Define R7
Power Supply Seasonic PRIME PX-1300, 1300W 80+ Platinum, Full Modular
They were literally a sub $400 million publicly traded company prior to them being forced to close the doors due to COVID-19. They were so cash strapped they couldn't afford to go private. The writing was on the wall, and the investors and board knew it. This is just the beginning. Chapter 11 will come at some point, probably mid to late April. There will be an attempt to garner stimulus money.
 
Joined
Aug 20, 2007
Messages
20,713 (3.41/day)
System Name Pioneer
Processor Ryzen R9 7950X
Motherboard GIGABYTE Aorus Elite X670 AX
Cooling Noctua NH-D15 + A whole lotta Sunon and Corsair Maglev blower fans...
Memory 64GB (4x 16GB) G.Skill Flare X5 @ DDR5-6000 CL30
Video Card(s) XFX RX 7900 XTX Speedster Merc 310
Storage 2x Crucial P5 Plus 2TB PCIe 4.0 NVMe SSDs
Display(s) 55" LG 55" B9 OLED 4K Display
Case Thermaltake Core X31
Audio Device(s) TOSLINK->Schiit Modi MB->Asgard 2 DAC Amp->AKG Pro K712 Headphones or HDMI->B9 OLED
Power Supply FSP Hydro Ti Pro 850W
Mouse Logitech G305 Lightspeed Wireless
Keyboard WASD Code v3 with Cherry Green keyswitches
Software Windows 11 Enterprise (legit), Gentoo Linux x64
Sure it can. It has and likely will continue to. They will need to restructure and strategically downsize.

I'm not sure I agree. As the above poster, I see this going the way of blockbuster. One-store operations only.
 
Joined
Jul 7, 2019
Messages
821 (0.48/day)
I have a long history with Gamestop, when they were still Electronics Boutique (then EB Games, then Gamestop). The managers at the two mall locations I visited regularly used to know me as a regular who'd go there, read up some strategy guides and gaming mags, and eventually walk out with at least one game. Both still remain in business, and both of them still have a manager or worker who've I've become friendly enough with to get some early deals or info.

That said and in a way, the brand and the handling at many of their other stores have really gone downhill from those days. The way they handled trade-ins and resale have gotten considerably worse, and the way they treat their employees is complete and utter shit.

As far as their business goes, I expect they will still remain in business for the foreseeable future. The main thing stopping them from dying outright is the fact that many parts of the US still have real crappy internet speeds, or have capped internet limits, both of which prohibit streaming, decent online play, and downloading games. Also, there is the fact that they've steadily shifted toward catering to the anime and comic crowds, which is the last real niche left in the US. At this point, they should just merge with their sister company ThinkGeek and consolidate all stores towards general "nerd-dom"; games, comics, anime, cosplay, etc. since they haven't been entirely about games in a long time.
 
Top