Is Gamestop Going Out of Business – why they close down?

Noah Mitchell
By Noah Mitchell 10 Min Read
10 Min Read

Is GameStop Going to Close Down?

Hey there! You might have heard some rumors about GameStop possibly shutting down in 2023, but nothing official has been said by the company yet. They did close some stores in the past, and they’re still working hard to turn things around.

The CEO of GameStop is really focused on making the company profitable and making sure it grows for a long time. So, it’s not a sure thing that GameStop is going out of business anytime soon.

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But let’s dig a bit deeper into what’s been going on. GameStop has been around since 1984, and it’s seen a lot of changes in the world of video games over the years. But one big challenge they’ve been facing is the rise of digital game downloads. Nowadays, lots of gamers prefer downloading games right to their consoles or computers instead of buying the physical discs.

This digital trend has been growing, especially as internet speeds have gotten faster and more people have high-speed internet. In fact, in 2020, a whopping 83% of all game sales were digital, according to SuperData Research. This has made things tough for GameStop because they mainly sell physical games.

So, as you can imagine, GameStop’s revenue has been going down for a while, and they’ve been losing money. And then, the COVID-19 pandemic came along, making everything even trickier. GameStop had to temporarily close some of its stores and limit how many customers could be inside at one time.

But don’t worry, GameStop is trying hard to stay in the game! They’re making changes to their business to try and survive. For example, they’re getting into selling collectibles, cool stuff that gamers like, and they’re trying to make their in-store shopping experience even better.

So, to sum it up, GameStop isn’t closing down for sure, at least not in the near future. But they’re definitely facing some big challenges, like digital gaming and the pandemic. We’ll have to see how they adapt and whether their changes help them stay in business in the long run.

How Many GameStop Stores Have Closed Recently?

Okay, let’s dive into the numbers. GameStop, as you might know, has been dealing with some pretty big challenges lately, like fewer people buying games in their physical stores and more folks getting games online.

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To help deal with these issues and make the business better, GameStop started something called a “de-densification strategy.” Fancy name, right? What it means is that they decided to close down some of their stores that weren’t doing so well. By doing this, they hoped to make more money and focus on the stores that were doing great.

Now, here’s the important part: GameStop closed quite a few stores in the past year. As of October 31, 2020, they had shut down 462 stores. And if we look at the last two years, that’s a total of 783 stores that went bye-bye.

But wait, there’s more! In 2020, GameStop actually closed even more stores than they originally planned. They had said they’d close about 320 stores back in March, but it turned out to be closer to 400 to 450 stores worldwide. That’s quite a few!

In 2019, they closed 321 stores, and they were planning to close 300 more in 2020. But, as we saw, they closed even more than that.

So, depending on where you get your info, the exact number of closed stores might vary a bit. But one thing’s for sure: GameStop has been closing down quite a few stores as part of their plan to do better in the long run.

Now, they’re not just sitting around. GameStop is trying some new stuff to stay in the game. They’re not just selling games anymore. Nope! They’re into selling gaming gear, cool stuff related to games, and even things from pop culture.

Plus, they’re getting all tech-savvy with their website and doing things like curbside pickup and super-fast delivery.

And guess what? GameStop still has a bunch of loyal fans who love hanging out at their stores and talking about games. These gamers are ready to pay a little more for physical games because they enjoy the social aspect of gaming in person.

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So, in a nutshell, GameStop is working hard to stick around, but it’s not a guarantee. The gaming world is changing fast, and GameStop needs to keep up. Streaming services like Google Stadia and Microsoft’s xCloud might shake things up even more.

So, the future of GameStop is still a mystery. They’ve got to keep being creative and staying ahead of the game to make it in the long run. If they don’t, they could end up going out of business. Fingers crossed they find a way to keep on playing!

In Conclusion: GameStop’s Future

Think of GameStop like the main character in a choose-your-own-adventure book. Its future is a bit like a mystery story. What happens next depends on what GameStop does and things happening outside of its control.

Just like a hero in a story, GameStop will have to deal with tough stuff and problems. But what really matters is how it adapts, changes, and makes smart choices.

So, the big question is, will GameStop have to close its doors forever? Well, that’s a question for the future. We’ll have to see what happens in the next few years. It’ll depend on lots of things, like what GameStop decides to do, the competition, what’s hot in the market, and how the economy is doing. It’s a real mystery whether GameStop’s story will end with a big win or a sad ending.

To sum it up, GameStop’s future is up in the air, and it’ll depend on how they handle changes in the market and what people like. The rise of digital gaming and online stores has made things tricky, but GameStop is trying to change and make money in new ways. Hopefully, we’ve answered all the questions that brought you to this article!

Frequently Asked Questions

1. Is Gamestop going out of business?

At this time, Gamestop has not officially announced any plans to go out of business.

2. Why are so many Gamestop stores closing down?

Gamestop is closing down stores as part of a plan to restructure their business and focus more on digital sales and gaming experiences.

3. Will Gamestop still sell physical games?

Yes, Gamestop will continue to sell physical games, but they are also expanding their offerings to include digital game sales and other gaming-related experiences.

4. How can Gamestop survive in an age where digital gaming is becoming more popular?

Gamestop is taking steps to stay relevant and adapt to the changing market, including offering exclusive in-store experiences and rewards programs for customers, as well as expanding their offerings to include digital game sales and other services.

5. Will Gamestop continue to offer trade-ins and used game sales?

Yes, Gamestop will continue to offer trade-ins and used game sales, which have been a core part of their business model for many years.

6. What can customers expect from Gamestop in the future?

Gamestop is exploring new opportunities to enhance the gaming experience for customers, including offering virtual reality gaming experiences and expanding their digital sales offerings. They are also continuing to adapt to changing consumer trends and preferences to ensure that they remain a leader in the gaming industry.
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Hey, I'm Noah, a tech blog author specializing in writing articles on various Tech-related topics. With a strong background in digital marketing, I've witnessed firsthand how the age of the internet has revolutionized the way we consume and share information. Technology journaling allows me to explore and document these exciting advancements, keeping readers informed and inspired. Let's embark on this tech journey together!
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