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GameStop Says It's Moving Beyond Games, "Evolving" To Become A Technology Company

The gaming retailer says it's transitioning to become a more general technology company.

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GameStop has laid out its future ambitions, and it's not all about selling video games. The retailer said as part of its latest earnings release that it is taking steps to evolve to become a more general technology company. This won't come as much of a surprise to anyone who has been to a GameStop store or visited the retailer's website in the past few years, as the physical and virtual shelves are populated by plenty of non-gaming items like Funko Pops, clothing, general merchandise, electronics, and other products not strictly tied to gaming.

Still, GameStop is now putting it in writing that it no longer wants to position itself as a video game company first and foremost.

"GameStop has two long-term goals: delighting customers and delivering value for stockholders. We are evolving from a video game retailer to a technology company that connects customers with games, entertainment and a wide assortment of products," the retailer said in a filing with the SEC (via Yahoo! Finance). "We are focused on offering vast product selection, competitive pricing and fast shipping--supported by high-touch customer service and a frictionless ecommerce and in-store experience."

To realize its vision, GameStop is aiming to increase the size of its addressable market by "growing [its] product catalog" in areas like consumer electronics, collectibles, toys, and "other categories" that make sense for the business. GameStop is also looking to expand its fulfillment operations to help speed up delivery. It recently opened a massive facility in Pennsylvania and will open one in Nevada next year to support this plan.

What's more, GameStop is looking to flesh out its technology capabilities by "investing in new systems, modernized ecommerce assets and an expanded, experienced talent base." The retailer said it also plans to improve its US-based custom service capabilities.

GameStop has for years been moving beyond gaming. It was once a big player in the mobile phone space through its subsidiary Spring Mobile, which it sold in 2018 for $700 million. GameStop also sold off its Simply Mac division back in 2019.

Recently, GameStop has made headlines for its "meme stock" drama. Earlier this years, members of the WallStreetBets subreddit bought up stock as part of a short squeeze that propelled the stock price to new heights, and the stock continues to trade at around $200 per share, which is up from about $5 per share this time last year. GameStop's leadership team is now changed significantly, too, with billionaire investor Ryan Cohen assembling a team of former Amazon executives and other key players from the technology world to run GameStop.

For the latest quarter, GameStop lost $63 million, but this was a big improvement over the deeper losses it suffered during the same period last year. And although GameStop is in the red on a profit basis, the company is making more money in revenue than before.

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UnderSeven

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The reinvention is a very common attempt by a company going under. Usually it doesn't work and the company goes under anyway, as I'm pretty sure is the case here.

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Dave1927p

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They show pure incompetence providing any sort of customer service for people buying video games…doesn’t get simpler than that and they still are awful. Yet they think they can expand into tech…good luck with that.

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JMLEGO88

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Goodbye Gamestop Hello Techstop

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SystemOverload

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I don’t see how this is going to save the company…

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DETfaninATL

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Yay! I've been missing Radio Schack......... LOL

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malachi_27

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I'm imagining FYE circa 2005.

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BloodborneLore

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I was really struggling to get off to sleep last night so I went to Google “How to get off to sleep” and the top research result as I was typing said “how to get off gamestop.” As someone who knows very little about gamestop, I found it quite interesting and funny.

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naomha1

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Gamestop USED to be a decent gaming stop back in the early 2000s. Nowadays they're just another company with an overpaid CEO and underpaid employees. Sure, running a huge corporation takes money, people and product but Gamestop has continually dropped the ball with trade in offers, actual games in stock a lot of times and almost ZERO support for the pc gaming market any longer unless you buy online or digital through them. Which, let's be honest here, I can't imagine their digital market makes a boatload of money. I may be wrong though. You never know. Still, EB was the BETTER store and it totally sucks that Gamestop erased what EB brought to the table in the form of better service, more product and an avid pc support section. RIP. I traded in 2 games in 20 years and the trade in value was never worth the problem again.

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WarGreymon77

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@naomha1: Yeah, EB was a a lot better in the 90s. Big box PC games. No non-gaming knick-knacks or cell phone accesories. Instead there were strategy guides and Voodoo Graphics cards. They had several copies of a new game in stock. And their "new" games were actually unopened, unlike GameStop.

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ReaperEzekial

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RIP, GameStop. I’m not sure your new strategy will be the winning strategy you’re hoping for.

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MigGui

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Will it be called Stop from now on?

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DoctorTanaka

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Maybe "The Stop" like when Radio Shack tried to rebrand itself as "The Shack"?

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xHOJUx

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In the Seattle area there are so many mom and pop game shops around there is zero reason to go into a Gamestop.

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Avatar image for WarGreymon77
WarGreymon77

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@xHOJUx: Seattle is a gaming haven, or so I hear. Where I live though, the only "game store" around is Walmart. Oh and the occasional GameStop, but they still have their customer-unfriendly policies like opening a game and keeping the disc in a drawer and selling it as "new".

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Thanatos2k

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Best Buy ain't doing too hot either, Gamestop.

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bababooey12

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Stores thrive here...not sure everyone's issue with them. I usually go to them before anybody else game wise. I sold both my old consoles and grabbed my second Series X console from them. The Xbox headset that launched a couple of months ago was in stock there while out everywhere else. Also, their warranty is awesome. I had an Xbox controller stick drift issue bought a brand new controller with $10 warranty, controller had bumper issue from being dropped...went back given a brand new one for nothing just paid $10 for warranty again...rinse and repeat.

I've never had and issue with them and customer service is always good. I guess it depends on where you're from.

My only issue is I don't buy physical copies now usually just digital.

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Avatar image for Xylymphydyte
Xylymphydyte

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Was sure nice of them to kill off every other game store before turning the gun on themselves...

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Avatar image for PrpleTrtleBuBum
PrpleTrtleBuBum

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@Xylymphydyte: it happens with everything. a big parasite appears, leeches everyone to death and then the food runs out and the parasite dies itself.

it happens with shops, medical centers, daycare, schools, sports groups etc.etc.

but frankly if the business is viable, one of those former owners could just kickstart the business again. some do but most also feel video game store just isnt a viable thing anymore. i know a couple of local game stores here and when i go there its almost always just me and 1 shopkeeper. and even i leave with empty hands usually even though the stores have 500-1000 games and peripherals for nes-ps5 eras.

i wouldnt start a store like that either. it would have to be more like theme park where you can also play games for a price and get food and drinks and so. but even that doesnt sound so appealing when stuff like gamepass lets you try and play 100s of games for a rent price, and food and drinks are cheaper at home, and most people now shun the idea of sharing an arcade with strangers using their sticky hands and covidfilled noses near the games.

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Avatar image for WarGreymon77
WarGreymon77

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Continuing to move in the wrong direction.

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brightamethyst

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Please tell me they're going to rebranding themselves as just "Stop".

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Xylymphydyte

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@brightamethyst: Underrated comment.

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BloodborneLore

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@Xylymphydyte: Yeah, I don’t even have the store in my country and have never been inside one and I still think his comment is underrated. I gave it a Like because I thought it was quite funny and a little bit clever. It’s definitely worth more Likes.

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deactivated-64efdf49333c4

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@Xylymphydyte: And Suikoden 2 reference. Win win.

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Avatar image for Xylymphydyte
Xylymphydyte

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Going the Gamespot route I see.

Though I can't say I'm surprised, I haven't purchased a game from Gamestop in so very long. I think I got a bundle of cheap stuff on sale like 3 years ago and before that it was probably 5+ years because the local store has no games, the website has no games, it's incredible how poor their inventory is. I mean, it SAYS they have stuff but it always is "not available online" and then "not available for pickup at local store".

At one point this was only a problem if you wanted something older or more obscure but recently I got Call of Duty: Black Ops Cold War (my first CoD purchase since World at War) to play Outbreak with some mates and the local Gamestop didn't even that. The place must be dealing drugs on the side to stay afloat or something, God knows no one wants those awful Funko Pop things they build forts out of in their stores.

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Thanatos2k

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Edited By Thanatos2k

@Xylymphydyte: That's what stopped me from shopping at Gamestop. A new game comes out, you go to the store, you ask for the game, and the response:

"Did you preorder?"

"No?"

"Well we only have copies for people who preordered"

Excuse me, are you a store that sells video games, or a store that sells preorders for video games? And you make no effort to stock copies to sell? This is over a decade ago and started happening with every game I went to buy. Amazon wasn't sold out. That's when I knew Gamestop was doomed.

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Avatar image for WarGreymon77
WarGreymon77

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@Xylymphydyte said:
the local store has no games, the website has no games, it's incredible how poor their inventory is. I mean, it SAYS they have stuff but it always is "not available online" and then "not available for pickup at local store".

This, this annoys me to no end.

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bababooey12

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@WarGreymon77: Guess it depends on your location....

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Avatar image for jenovaschilld
jenovaschilld

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Gamestop is dying out and the company knows it as well, this is all spin and it will go no where. I am not saying this as a hater, I loved gamestop and the different versions of it past and present around the world, and while a lot of gamers are jaded toward GS now, let us remember the incredible influence on the gaming industry it had for the last 35yrs and to the hobby we love called gaming.

But for more then a decade now, every time GS tries to branch out into used computers/ laptops, used phones, niche items, online features, and it became the least bit successful.... GS would just sell off that division for immediate funds to shore up its stock or as kickbacks. This has cut off vast directions of what and where GS brand can exist. To be clear about this, SEARS and Blockbuster, and JC Penny have done the same thing as many other businesses in history have also. This is a controlled crash in the business world, as it were, just trying to milk as much profit out of the ship before it sinks.

Their management has purposely guided GS into history, which is sad, as one of my dreams was to own a franchise where I would work in the hospitals during the day, and finish my day closing the shop at night.

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deactivated-64efdf49333c4

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I actually haven't been into a GameStop recently.

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Avatar image for dwbtd
dwbtd

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Sounds like they want to become more of an.... Electronics Boutique?

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Thanatos2k

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@dwbtd: Next they'll sell toys and become some kind of Fun-co-land.

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edargnwod

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Sounds like they want to go back to what they were when they were called "Babbage's".

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videogameninja

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So, they might be going the way of the digital route?

Perhaps an Amazon gamestop type set up?

Something like that shouldn't come as a surprise to anyone; especially anyone who had visited a store recently.

I went into one a few days ago and was like "Um, where is the game section?" LOL.

No joke, at least half of everything there was memorabilia type stuff or kids toys. For goodness sake, they were selling "pop it" stuff.

EBgames/Gamestop will always have a special place in my heart but at this point in time I think we are all just waiting for the inevitable.

-WAY OF THE DODO NINJA APPROVED-

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