GAMESTOP IS HERE TO STAY WITH NEW BUSINESS MODEL
If you’re a gamer and have grown up with any of the major console platforms in the last 20ish years, you know GameStop, and you know them well. Whether you have a good relationship with the gaming retail giant or not, we’ve all (mostly) been inside a GameStop and know what they’re about; new and used video games, accessories, consoles, and as of late, gaming paraphernalia and nerdy tsotchkes. But all of that is (hopefully) about to change.
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GameStop has been having a rough go at it in recent years. What was once a beacon of light for gamers and nerds of all kinds, has fallen off it’s pedestal amiss a smattering of hate from those that once graced it’s holy grounds. The cultural shift from physical media to digital has hurt the games retail and reselling business in a major way. Coupled with questionable (and sometimes downright bad) business practices, treating their employees like crap, and pushy customer sales tactics; GameStop has driven away their once loyal customer base, resulting in dwindling sales figures and in September, GameStop announced it would be closing almost 200 physical stores across the country, leaving many people without a job and some senior management surprised by being let go in one fell swoop. But amongst all the doom and gloom, GameStop has remained somewhat vigilant and refuses to go quietly into the night.
GameStop has made it known that the store closures and staffing cut backs are a necessary evil in order to stay afloat and all part of a re branding scheme, citing that they’ll be revamping their old model to stay relevant in the coming years.
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In Tulsa, Oklahoma and a few surrounding cities, GameStop has been testing that new model of “social concept” stores. Rather than just going to GameStop to buy or pre-order a new Call of Duty, these new concept stores will allow you to PLAY the new Call of Duty, among other fan favorites, in what is basically a glorified LAN center; a concept made popular in Europe and Asia. GameStop’s versions (of which there are currently 12 being tested), are themed around Retro Games, Pop Culture, and are very community focused, with weekly events, tournaments, and even tabletop gaming areas!
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Store leaders are encouraged and allowed to make choices about their specific stores. One of the 12 stores being tested has a more Retro-Gaming focus. Whilst still selling the usual GameStop stuff (toys, new games, etc), this particular store also has used games dating back to the NES in stock, with plenty of CRT TVs and retro consoles to play on and relive the days of yore. Meanwhile, the next store may have a more LAN Center focus, with weekly tournaments and events for it’s customers to play in on the many PCs and Consoles within it’s walls. Each gaming station containing a game-spec PC, Xbox One, PS4, and Switch. Managers are encouraged to run their stores and curate these various events and themes as they see fit. A level of freedom unheard of in the GameStop Corporate culture.
“Transactions are always good, we always want transactions, but we're trying to get away from the 'transaction first' mentality,” says Zach Shor, head of innovation for the company.
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Not only are the Store Leads given more freedom to run their store, employees in these stores are also feeling the difference in culture. They are now being encouraged to come out from behind the counter and engage with the customers more. Gone are the days of high pressure pre order selling and subscription based models. Each store has sales goals to meet of course, but they’re more relaxed about it now, with the main focus being the customer experience and getting them to come to the store (and keep coming back) to enjoy the social atmosphere. A drastic difference from the previous high pressure transactional model with harsh sales goals.
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GameStop’s new model isn’t being rushed out anytime soon. They’re taking their time with it to see how it develops and evolves. A good action to take, and not one of desperation. GameStop wants their new stores and image to work, and to be honest, they need it to in order for their company to last long term.
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Having been a regular at my once local LAN Center (GLHF Game Bar) before the senseless tragedy that befell them and forced them to close, I’m a big fan of the concept that GameStop is exploring. So much so in fact, that I once laid out and entire business plan that is almost exactly what GameStop’s new model is. LAN Center with new and old games, weekly gaming tournaments and events, table top and TCG gaming, snacks and drinks, and some retail mixed in there. It honestly surprises me that something like this hasn’t taken off completely across the country. While there are some spots opening up in larger cities here and there, they’re mostly larger eSports type facilities. A lot of them seem to either be all-in on eSports titles and PC gaming, or all console and sports games like Madden and FIFA. What a lot of them seem to miss is the community aspect.
Gamers love to socialize when it comes to gaming. And with the blatant removal of any kind of Couch Co-Op on modern day consoles save a few Nintendo Switch titles, there isn’t that sense of community anymore. Sure there are Facebook groups dedicated to specific games and genres, Twitch communities revolving around particular streamers, and hell, this website and Podcast. But what is missing from all of those things is the real life face-to-face interactions.
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Gaming used to be a very social activity. People used to frequent arcades to challenge each other to the latest games like Mario Bros, Donkey Kong, Pong, and Joust. When the home-console market started to flourish in the 90s and 2000s, people used to go over to their friend’s house to play co-op games like Mario Party, Need For Speed, and Halo. But within the last generation or two of major consoles, that social aspect has been stripped away, and we’ve been given a pay-play-together subscription service that put the proverbial nail in the coffin of couch co-op.
There’s something special about physically being with your buddies in a room together while playing a game. There’s a reason why professional eSports tournaments are selling out stadiums. Gamers, despite negative stereotypes, love to be social. Especially when in a situation where they can commiserate around their favorite hobby.
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And this is why the new GameStop stores will win. GameStop now understands their place in this new age world of digital downloads, cloud gaming, and subscription services like GamePass, Origin, and PSNow. Physical media and used copies of games can no longer sustain an entire chain of retail stores and their employees. Thus, they’ve changed. They’re shifting from a 100% retail and transactional model and moving to a service and customer experience model. Game developers in a way have done this exact thing. “Gaming as a Service” has expanded into almost every genre in the last few years. Game Devs are pushing out updates to their games. They’re (some) listening to their player base and implementing balance changes, quality of life changes, and making the game experience better. Compared to the early days of video games where you’d get what you got and if there was a game-breaking bug that didn’t get found before release, you can bet it’d be exploited from that day forward. So it makes sense that GameStop would do something similar with brick and mortar stores. Move from a transaction “you get what you get” model and more towards a service and experience one. Even comic shops and TCG stores have moved to this model. Give people a reason to keep coming back to the store besides just selling them products.
GameStop gets it. GameStop will win, and GameStop is here to stay. The culture within the company is being founded as we speak, and the gamers will once again grace it’s walls. Those that refuse to see and enjoy the new GameStop for what it is today and will be in the future are clinging to past ideals and are still salty that their 5 year old game with a broken up box didn’t get as much in-store credit as they falsely assumed. They can either have fun with us, or they can be edge lords on the internet and make, yet another, tired and unfunny GameStop meme.
The choice is yours.
