GameStop in buyout talks.

[Daikun]

Video game retailer GameStop confirmed Tuesday that it is in discussions with third parties for a potential buyout.

This followed a report from Reuters on Monday that New York-based private equity firm Sycamore Partners and possibly others are interested in the company, though GameStop did not mention any interested parties by name. Sycamore holds investments in retailers like Hot Topic and Staples.

Full article.

 

[Mandouga]

Predictably, the article refers to online shopping and digital games as reasons for Gamestop being in trouble, when most people already know the real reasons: among them, the whole "quality of life" thing* (which they have since changed so that it's only the store as a whole, and now also includes games that are bought new). At any rate, I knew the company was in trouble, and this now confirms it. Whatever happens, though, in the end, Gamestop will only have themselves to blame.

*For a while I boycotted them because of it, but after thinking it over for while, I (very reluctantly) decided to give them another chance.

 

[Daikun]

They could be sold next month.

 

[Light Lucario]

I'm not too surprised. For quite some time, there have been less games in GameStop. They have a large section devoted to toys and other merchandise. It does make sense in a way to possibly attract more people to buy more stuff in their stores, but it also showed that they weren't making enough money just off of video games. Online retailers and buying games digitally could be factors for their situation, but I still have three or four GameStop stores within easy driving distances in my area, so I'm not sure if those are the biggest factors here. I've never been a fan of buying video games digitally either. It can be a good way to release older games for new systems, but aside from that, I still prefer getting a physical copy. I don't have to worry about losing hours of game play if my system is broken/lost and I like the box art too.

If they are bought out, I just hope that they don't shut down completely. That would be terrible for all of the employees.

 

[Oscar Preciado]

I think Netflix might buy Gamestop, so they can open their own gaming streaming service like Xbox Game Pass.

 

[jaylop97]

Good thing they are doing something over this, GameStop is basically a modern day Blockbuster at this point, unfortunately, thanks to the rise of Online preference. For their sake they still have possibilities of continuing on at the very least, unless if the parent company just decides to put down the brand.

 

[Mandouga]

So basically you're saying that anything bought at Gamestop new is just a glorified rental? Yeah, as much as I don't like many of the things they've done, I still think that's not a fair comparison, even for them. "Online preference"? That just sounds like more blame being placed on online shopping, let alone online video game shopping. Brick and mortar stores are not going to be replaced entirely, but I go on. If anything does happen to Gamestop, whether they get bought out, or if they go out of business completely, it won't be because of online shopping, it will be because of how they tried to treat us customers, and their employees (the "circle of life" thing affected/affects customers just as much as it affected/affects their employees), among other things they tried to do (including offering more and more video game related stuff, as opposed to just video games). As I said in my previous post in this thread, whatever happens, they will only have themselves to blame, regardless of whether they are a chain of b&m stores, or an online only store like Amazon.

FYI: Gamestop started in 1984 as a store called Babbages. I don't know if they, Software, Etc., and Electronics Boutique (later "EB Games") originally sold used games (which they eventually started doing, if they originally didn't), but I do know that another store called FuncoLand did. "GameStop" is the result of a merger between Babbages, Software, Etc, and FuncoLand, with EB being bought later.

I sometimes wonder of buying FuncoLand was really what started this whole thing...

 

[Light Lucario]

I don't think that the Blockbuster comparison is fitting myself. While you can order games digitally right on your system, I'm not sure if that is the dominant way people are buying video games now, especially compared to buying/renting movies on YouTube or iTunes. I still prefer getting physical copies of games since I don't want to risk losing hours of gameplay through losing my system or having it break down. Plus, I just like having a physical collection of video games. Whenever I go to GameStop to pick up my pre-ordered Pokemon games, there are usually a good amount of people there and they still have midnight release events for certain titles.

They're still not clearly doing well financially given the buyout talks and how a good chuck of their store is full of merchandise instead of video games, but I don't think that they're exactly a modern day Blockbuster. Blockbusters were closing left and right before they went under, while I haven't heard GameStop being in that position just yet.

 

[Daikun]

I think Netflix might buy Gamestop, so they can open their own gaming streaming service like Xbox Game Pass.

I don't think so. The gaming streaming market is already pretty crowded as it is. Steam and GOG are the dominant players and a few developers (i.e. EA) already have their own service. Besides, we already have a Netflix-like service for video games called GameFly.

Netflix succeeded because it tapped into a niche that didn't yet exist. They would struggle if they went into an already crowded market.

 

[wonderfly]

If it's a mainstream game, I tend to just buy the game at Walmart anymore. For lesser known current games (or retro games) I prefer to go to the local "mom and pop" video game store in my area. They have a great selection of retro game consoles on display and I enjoy the nostalgia experience.

I don't hate Gamestop like some others out there...but i just see no reason to go there anymore.

 

[jaylop97]

I go on occasion to GameStop and more often than not I never buy a thing. Prices aren't the reason, it's mostly the selection, I can never seem to find anything worth getting, I also avoid getting used games because you are risking either a working game or one that doesn't work, (at least that's what happened during my Xbox 360 days).

 

[Daikun]

 

[Fone Bone]

What a bunch of dumbasses.