GameStop is in discussions for a potential buyout

Greg S

Posts: 1,607   +442

One of the few tech-related brick-and-mortar stores remaining is now discussing potential offers to buy the company. GameStop's niche in buying and selling video games and consoles has worked to keep it afloat even in the age of digital distribution.

Private equity firms have been meeting with GameStop to hash out the details of what an acquisition could look like. Interest from new investors of the Grapevine, Texas-based company have caused stock prices to rise. GameStop's shares were up by 11 percent hitting a high of $15.50 for the day on Monday following the news.

It can be frustrating to walk into a GameStop store with arms full of games and old consoles only to be offered a ridiculously low amount for everything you have. That is, assuming the store will even make an offer on everything you brought in. Nonetheless, this practice has been precisely what keeps the doors open.

The rise of digital distribution has made it unnecessary to go to retail stores to buy games for PC and consoles alike. It can be more of an inconvenience to make a quick detour to a GameStop to pickup a game or two than it is to just buy a game through an online marketplace. There is no resale value for games purchased digitally, which is what has kept GameStop afloat with the help of used games.

An acquisition of GameStop would not mean that it is shutting down, rather that new ownership could look at different ways of doing business. How GameStop will continue to try and remain relevant over the coming years could be a great challenge.

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ShagnWagn

Posts: 1,297   +1,083
Even with gamestop shafting people, buying used games is still cheaper for customers than buying full retail for them online. I don't believe there is a way to sell a used digital download. There should though, because the "license" is tied to only one account. There are several games tied to my steam account I would like to dump.
 

texasrattler

Posts: 1,033   +466
Gamestop shafting ppl is what killed them not digital games.
Ppl still buy from them but higher prices n low trade value will eventually kill you. It has been hurting them for awhile, its not new.

Only time I have bought from them was months after a item has come out or after xmas when a lot of things go on clearance.
They sell items aka toys higher than most. In some cases $5-$10 higher, thats just crazy.
Finding exclusive items in stores, forget about it.
All of this is a recipe for disaster and it has now finally stuck. IMO, its a long time coming.
 

Danny101

Posts: 1,425   +570
Sounds like a sale that will end the physical media era. They buy it out to close it down.
 

Misagt

Posts: 314   +232
I remember about 15 years ago I went and traded in about 50 games. I was offered 80 bucks, I took it at the time but never traded in games since. There is no point, even if you don't play it again its probably more value sitting on a shelf and you remembering playing it then the buck or two they offer you for your games.
 

mailpup

Posts: 7,618   +733
TS Special Forces
I remember about 15 years ago I went and traded in about 50 games. I was offered 80 bucks, I took it at the time but never traded in games since. There is no point, even if you don't play it again its probably more value sitting on a shelf and you remembering playing it then the buck or two they offer you for your games.
Oh, I don't know. If you are not going to play them anyway and are satisfied with the memories of playing, might as well have the $80 instead of zip, IMHO.
 

LeroN

Posts: 107   +50
Bad news. You can't return a digital game even for one dollar. Also MS and Sony sell digital games absolutelly overpriced. In almost cases you can find a phisical copy significantly cheaper. And it's one place only where you can trade in an old console towards new one for not very low price.
 

Danny101

Posts: 1,425   +570
There is now enough saturation that if goes all digital and the games cost too much, then people will just hold out longer before buying new games. Especially if they can't sell or trade them in. With physical media, people are more willing to pay more as long as they sell and trade value remains. There are a few directions this can go.