Basically, the answer is yes. Every generation they get a boost.
It’s easy to understand why it happens. People want to trade in their current hardware and software. Gamestop offers that service. They also sell all that stuff at rather high margins, especially around the time of new console releases because there are plenty of people who won’t buy the new console for awhile who are still in the old system’s eco-system.
As noted by @Misguided, there are also all the new games and accessory sales that do have ok to really good margins on them. Gamestop is one of the primary places people still go to buy videogames and systems. Not everyone has migrated to buying online, especially since physical still offers discounts where the discounts on AAA games digitally often take much longer to arrive if they do at all.
Gamestop basically goes as the industry goes. Right now we’re at that point where a lot of people aren’t buying as many games because the generation is played out. Arguably it’s gone on too long again… which is why Switch, along with its portability being a selling feature, really helped keep all of gaming “up”. Without Switch, everything would be way down right now. You can see it in the monthly numbers that get released.
I’m not convinced home consoles will ever move away from physical media. I have said many times that if/when that happens, gaming as we know and love it will be gone. It’ll all migrate to something approximating the Apple store where everything is free or costs a couple bucks because right now the physical games are what’s driving the value of the online purchases.
You see that when certain games launch at $59.99 and people say, “That should only cost $29.99”. If you released that at $29.99 on digital only, it would be a failure for the developer/publisher. They need to have that first run price to start, which makes discounting more valuable. Also, having all these stores around keeps people engaged with gaming on a local level. You take all those stores away and I really think people aren’t as aware of gaming in general… these are the regular joes, not people on this board.
I somewhat agree too. Maybe it is a bit of hope, because I prefer physical media. But at the very least, the next round will be something Gamestop can sell/service/make money off of.
Except that very predictable events tend to be baked into the stock price, too. Big stock value jumps only occurs when a stock outperforms projections/have an unexpected positive event.
From what you’re saying, we can expect to see a revenue bump (maybe a serious one) but that it is essentially of the more of same type. If anything, I suspect that this round of new consoles may see either less brick and mortar sales or less physical media purchases—nothing is pointing to it potentially being unexpectedly stronger than the last round of launch, with the possible exception of it having gone too long since the last launch, per your post.
I think it’s too soon to know how big the next launches will be, but one thing we sort of do know is they’re going to happen in the same year and at roughly the same time and we haven’t seen that in a LONG time. If the machines themselves dazzle, next year is going to be completely apeshit bonkers for sales of gaming devices.
Long lines of people waiting everywhere will be a thing. Consider also… competition has disappeared. Toys R Us is gone since the last round of system launches. There is only Best Buy and the likes of Target and Walmart left. Amazon can never handle the load of system launches. Gamestop is going to be one of the primary locations to get a PS5 or Xbox Scarlett. It will also be the only one that takes your PS4 or Xbox One as trade-ins.
360 and ps3, kinda. I mean, not technically, but 360 stock was so limited for the first 6 months, it didn’t really matter.
At any rate, I feel like this current console generation has been quite strong. I think it will have legs for a good long time for many people, even moreso than usual. Will be interesting to see what kind of launch exclusives there might be to drag people into the new systems.
They are obviously overbuilt so that number is really not that big. I expect one to close near me since there are four of them in town. Unfortunately the one I worked at in the mall (when it was Electronics Boutique) may be the one. I’m pretty sure that was in the first thirty stores EB built too.
…which made sense before some contraction of the physical games market. They were likely making reasonable bank at all those locations. We did lose one store here about a year ago. At one time there were five!
Yeah, the store I used to manage is long gone, but the mall it was in was on life support a decade ago. I’m sure there are plenty of locations that make good sense to close. I don’t see it as a sign of weakness, but of efficiency (which can be overdone, certainly).
This mall is still doing ok-ish, but it lost two anchors because of the Sears debacle and The Bon Ton closing down for good. The only thing left anchoring is the company I work for (Boscov’s) and a lot of smaller mall stores. The Gap just closed up though. It just seems like Gamestop’s model has moved them out of the enclosed malls and into the strip center locations.
As you say though, this is probably right sizing things. They just don’t need as many locations and it will help in the long run. People should realize they have 5,830 stores. This is a tiny fraction they are closing.
They’re going to do gangbusters business with the next round of consoles. No Toys R Us anymore is going to have a huge positive effect on their sales and presales IMO.
