Why GameStop Might Fail in the Digital Age

gamestop

GameStop has grown due to controversy caused by a number of former employees coming forward to share their stories.

The sting of the digital age slowly encroaching on the business has also been felt. People have been converting to downloads and getting their games straight from the distributor for years. Why leave your couch to go to a store when you can simply download a game?

Top Reasons GameStop Could Go Out Of Business

Lacking Content

Hal ini dikarenakan setiap agen 139 slot mesin mempunyai nilai keuntungan yang berbeda. Untuk meraih hadiah jackpot tentunya anda harus menentukan mesin dengan tepat, maka pendapatan dapat anda peroleh dengan maksimal.

The years have only gotten worse because GameStop’s stores have never had any kind of content. Sony made the decision to remove all digital products from GameStop’s stores in 2019. That was a significant setback that aided in the transition to digital. Because of promotional offerings or Powerup Rewards points, a lot of customers were visiting the stores to download products. It would have been wiser to stay home and save the gas without those bonuses. Prior to that, it was difficult to find other digital goods like PC games, and some games offered incentives like discounts if you preordered them from a digital retailer.

gamestop games

Although the growth of digital gaming is not surprising, are consumers aware of how much of a rise it has experienced? Physical games accounted for 80% of the gaming market in 2009, when GameStop was financially successful and digital gaming didn’t have the same market as it does now.

In 2018, the market has undergone a significant change. Physical games made up 17% of the market just two years ago. Digital games accounted for 83 percent of the total. As time passes and internet speeds rise, that change will only intensify.

digital games

GameStop’s Market Is Shrinking

By the end of 2020, GameStop intends to close even more locations than the 321 stores it closed in 2019. Sales data for the company indicate that they are no longer nearly as profitable as they once were, and this is beginning to become apparent. It is now simpler to switch to an online platform because fewer people have access to local stores. GameStop is making an effort to rebrand some of its locations, with some emphasizing collectibles over video games. If some gamers are unable to locate a nearby retailer of video games, this could be detrimental to them.

See also  Top Best Android Games With Controller Support In 2021

Read More: How to Cancel the Amazon Gift Card | Three Ways

A Growing Digital Marketplace

Digital gaming is becoming more accessible and affordable than it once was. Thanks in part to Microsoft’s Game Pass. Players can use this system, which is expanding to include new games, to pay a monthly fee in order to play any game that has been added to the Game Pass. Future games like Halo Infinite will be available on Day 1 of Game Pass.

It has evolved into the more affordable choice for gamers who want the newest titles, with a monthly fee of $15 USD. Other subscriptions, such as PlayStation Pro and Xbox Live Gold, let users download things for free each month. This increases the number of games that are purchased from the respective console stores. Future updates to these services for the PS5 and Xbox Series X are also anticipated.

digital games

Streaming Services

Games are available for streaming, just like movies. Gamers can access some of their favorite titles to stream or download through services like PlayStation Now. GameStop doesn’t currently have access to this kind of market. To play both newer and older games, PlayStation Now costs $60 USD per year, or $5 per month. Microsoft has announced Project Xcloud, which will be available later this year and be free for anyone with a Game Pass Ultimate subscription. Another service that will let users stream their games rather than wait for annoying downloads is this one.

online streaming games

World Events

Games are streamable just like movies are. Gamers can download or stream some of their favorite games thanks to services like PlayStation Now. GameStop is currently not able to access this kind of market. PlayStation Now costs $60 USD per year, or $5 per month, to play both newer and older games. Microsoft has revealed Project Xcloud for later this year, which will be available for free to anyone with a Game Pass Ultimate subscription. Players can stream their games using this additional service rather than waiting for annoying downloads.

See also  [2020 Updated] Top Best Multiplayer Wii Games

game events

A New Business Model

GameStop needs a new business strategy that places more of an emphasis on online gaming. In some cases, test stores have changed to emphasize being more of a gaming café style of store. The business model, however, has a flaw. GameStop makes extensive use of trade-ins. On average, they make 46% of the price of each used game they sell. There are fewer trades because fewer physical games are being purchased. In the increasingly digital era, this mode of doing business seems destined to fail.

GameStop’s Crazy Stock Prices

A group of day traders recently joined forces to drive GameStop’s stock price to levels it hasn’t experienced in a very long time. The stock price increased by more than $400 over night. Numerous media outlets were interested in this increase, but just because the stock price increased doesn’t guarantee the company will remain in business. If the brick and mortar portion of the store doesn’t change to reflect the higher stock value, the stock price fluctuation might even be detrimental to the business. Additionally, raising the stock price is not a substitute for the store making money. In the end, GameStop’s stock price might decline once more.

Conclusion

The sting of the digital age slowly encroaching on the business has also been felt. People have been converting to downloads and getting their games straight from the distributor for years. The years have only gotten worse because GameStop’s stores have never had any kind of content. Sony made the decision to remove all digital products from GameStop’s stores in 2019. In 2018, the market has undergone a significant change. Digital games accounted for 83 percent of the total. By the end of 2020, GameStop intends to close even more locations than the 321 stores it closed in 2019. Digital gaming is becoming more accessible and affordable than it once was.  I hope you found the article interesting, and if you want to learn how to use a GameStop reward certificate online, read on.

Leave a Reply

Your email address will not be published.

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.