6 hours ago
6 hours ago
6 hours ago
GameStop to Close Nearly 500 Stores
By: Nadeeja Wick
February 03, 2013 - 12:56 CST
Resulting from a decline in revenue over the past years, GameStop is going to close a huge number of their stores.
According to GameStop's fiscal year 2012 earnings, their business is suffering. They're year-over-year revenue has fallen by 4.6%. Moreover, when compared with their competitors, a decrease of 4.4% was shown. In order to restore to order - yes, pun sort of intended there - they are planning on closing down nearly 500 stores nationwide.
I'm surprisingly not surprised at this news. GameStop hadn't got much of a chance now with how fast the modern gaming industry is moving. With mobile games, and downloadable games being available almost instantly, going to a store presents a waste of time and, not to mention, the valuable and overpriced gas we are forced to use. Services like GameFly are available also, and they have a huge impact on stores like GameStop. In addition, more stores have adapted the whole "used games" idea. Best Buy, and even some Targets are taking part, adding to the increased competition GameStop is forced to encounter.
Don't fret yet as they aren't implementing this closure instantly. Some time and thought will have to be given on which stores are going to close and which will remain open. I'm sure sales analysis and earnings will play a massive role. There are three GameStop stores equidistant to my house. I think that is a bit much. All three are not more than 10 minutes away. And yes, all three of them are overpriced and present poor customer service. Most GameStop employees aren't even truly into games. Often times I've asked about games - games that I own or have played - and they have given me such fake reviews regarding the games just to make a sale. Gamers, or at least true gamers, are a rare breed. Most GameStop employees are just that: employees. I have come across one or two that knew their stuff, but for the most part, I can't happily say so.
So, what do you guys think about this fall of GameStop? Will you be effected? I personally don't care. The only guilt I feel are for the massive number of innocent employees losing their jobs.
Nadeeja Wick is a games reporter for NextGenUpdate.