GameStop to focus on gaming-adjacent tech fields moving forward

Shawn Knight

Posts: 12,999   +130
Staff member
It was only a matter of time before shifting market trends forced games retailer GameStop to modify its strategy. During at recent presentation at GameStop's 2014 Investor Day, CEO Paul Raines outlined a new strategy that will see the company...

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davislane1

The writing has been on the wall for at least the past 5 years. I'm surprised they've waited until now to start changing gears.
 

tipstir

Posts: 2,854   +200
The killed all the other stores like themselves the last one was Media Something they were the last to get killed out! This company the only one around so I am sure they have other business ventures they own. Like this all over.
 

theBest11778

Posts: 298   +127
They're going after a market who's current leader is ready to be taken out, Best Buy. Gamestop has waited until market conditions were at a point where there will be little to no competition. Walmart will be around for the foreseeable future, but most tech savvy people don't buy electronics there. Best Buy's the only major electronics retailer left, but their financial situation, and business model, have pushed them to the edge.
 

GhostRyder

Posts: 2,151   +588
They're going after a market who's current leader is ready to be taken out, Best Buy. Gamestop has waited until market conditions were at a point where there will be little to no competition. Walmart will be around for the foreseeable future, but most tech savvy people don't buy electronics there. Best Buy's the only major electronics retailer left, but their financial situation, and business model, have pushed them to the edge.
Your forgetting another major retailer, Fry's electronics which is probably my favorite store on the whole planet. Going inside one of those sets off the nerd inside me and its so fun to just be able to see such a vast assortment of motherboards, processors, GPU's, etc sitting all waiting there for me to examine.

In all honesty, Gamestop will have to start evolving as the used game market is starting to tone down a bit. They do not want to be caught with their pants down like Blockbuster was.
 

MilwaukeeMike

Posts: 3,214   +1,467
They're going after a market who's current leader is ready to be taken out, Best Buy. Gamestop has waited until market conditions were at a point where there will be little to no competition. Walmart will be around for the foreseeable future, but most tech savvy people don't buy electronics there. Best Buy's the only major electronics retailer left, but their financial situation, and business model, have pushed them to the edge.

I don't think it really sounds like they're going after best buy. Best Buy sells computers and TV's and the like too, Game Stop is moving into mobile, which more the gap that Radio Shack is leaving behind. Best Buy actually made money two out of the last 3 years, and while they're still a big victim of showrooming, I think they're doing OK. At least in my town, they're wiping the floor with HH Gregg, and poor circuit city.... remember them?

Best Buy however, does have the problem of sales people who have a reputation for being a little light on the product knowledge, so perhaps they plan on focusing on customer service. I wonder if Game Stop will be turning locations into mobile sellers that have a best buy mobile store near by. Or will they only modify stores where they are the only electronics spot in the mall?
 

theBest11778

Posts: 298   +127
I don't think it really sounds like they're going after best buy. Best Buy sells computers and TV's and the like too, Game Stop is moving into mobile, which more the gap that Radio Shack is leaving behind. Best Buy actually made money two out of the last 3 years, and while they're still a big victim of showrooming, I think they're doing OK. At least in my town, they're wiping the floor with HH Gregg, and poor circuit city.... remember them?

Best Buy however, does have the problem of sales people who have a reputation for being a little light on the product knowledge, so perhaps they plan on focusing on customer service. I wonder if Game Stop will be turning locations into mobile sellers that have a best buy mobile store near by. Or will they only modify stores where they are the only electronics spot in the mall?

Best Buy sells TVs, and a bunch of other things true, but they're only profitable in Appliance sales (a little bit,) and Best Buy Mobile (Phones/Tablets.) Their Mobile Dept is the only thing keeping them a float at the moment. If Gamestop snags that market the rest will crumble. I worked for the local store for about 10 years, and keep up with some friends that still work there. Thing's are getting bad internally. Many positions removed, and my team and myself were fired for being there so long we were all over salary cap after they suddenly decided to drop the cap from $25/hr to $13/hr.

I doubt Gamestop will get in to TVs and such, but probably some computer supplies. High margin gaming gear and monitors I can see being a thing.