The Once Massive Video Game Retailer Could Soon Be Done For
GameStop was once a massive force in the video game industry. Particularly during the last generation of consoles. The Xbox 360 and PS3 did have options to download games, but it was somewhat tedious and took up too much storage space. This has of course changed since the release of the Xbox One and PS4. Both consoles have very capable online stores that can deliver a game onto your console with the touch of a button. And with more storage room available, downloading a game from the comfort of your own home without it taking up 80% of your hard drive.
With the rise of online stores and “digital gaming,” GameStop’s stocks have plummeted due to the loss of business. The report which suggests a bleak future for GameStop comes from Business Insider. According to Business Insider, GameStop doesn’t have very long left. Another analyst, Michael Pachter, also agreed with this assessment.
The writing on the wall has been quite apparent to the video game retailer for some time. In 2013, in an effort to branch out to other sectors, GameStop purchased Spring Mobile stores. However, this just exacerbated the issues that GameStop was facing financially. Spring Mobile generated an estimated 800 million dollars in debt.
There was an attempt to sell GameStop in February of 2019, but there was no one interested in buying the company. This could be due to the fact that it has not been confirmed whether or not the Project Scarlett or PS5 will even have disc ports. Micheal Pachter thinks that it is possible that the next generation of consoles might keep them afloat for another ten years at best. But anything after that would be nothing short of a miracle. Only time will tell.