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GameStop’s failing and Lara Croft can’t save it

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gamestop lara croft
If you’ve ever stopped by GameStop’s corporate site, you may notice something “clever.” In an attempt to prove the company is super cool and hip to the young kids, Lara Croft is listed on the Executive Leadership page as Executive Vice President of Tomb Raiding and Relic Discovery. Which means if you count up the number of people in charge at GameStop, factoring in the executives and Board of Directors, there are 14 men and 3 women, one of whom is “digitally challenged.”

Which actually makes sense, in an ironic kind of way, because GameStop itself is “digitally challenged.” All we keep hearing is that the future is digital, which will naturally cut into GameStop’s business. Back on January 7, 2014, GameStop shares plunged almost 9% after Sony made its PlayStation Now announcement that would bring classic PS2 and PS3 games to the PS4 via the cloud. The company has attempted damage control by selling eShop, PlayStation Store and Xbox Live cards, PlayStation Plus and Xbox Live Gold subscriptions, and even digital copies of games, but they’re last ditch efforts. I mean really, who’s going to walk into a store to buy a code to download a game, when they can just turn on their handheld or console and do the same thing in their home?

Though, that isn’t the only thing hurting the retailer. It’s unchallenged position as the one major location anyone can trade in and buy used games is facing competition. Amazon, Best Buy, Target, and now even Walmart buy back used games, and I know from experience that Best Buy and Target often offer more money. That isn’t even taking into account smaller chains like Half Price Books and independently owned retailers like Disc Replay. We know GameStop doesn’t have our best interests at heart.

The smell of desperation is in the air. It isn’t just about GameStop’s attempts to be clever by featuring Lara Croft and hoping people will see that, smile, and think about stopping by their local store. It’s also about the recent decision to close as many as 130 GameStop stores in the 2014 fiscal year and open 300-400 Cricket Wireless, Simply Mac, and Spring Mobile stores in their place.

Let’s be honest. Diversification isn’t going to save GameStop, and Lara Croft isn’t either. The company has dug itself into a hole with its business practices, and it won’t be able to dig itself out. Other retailers are doing everything they do, only better, and the PlayStation Store, Xbox Live Arcade, and Nintendo eShop are there to pick up the slack. The funeral dirge may not be playing yet, but we’ll probably hear it sometime in the next five years.

Site [GameStop]

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  • Nonameneeded

    Another trash article by a trash author with no statistical facts. Go home gamestop hater, you’re drunk.

    • Jenni Lada

      As I said in the article, GameStop stock dropped almost 9% when PlayStation Now was announced and over 100 GameStop stores will be closing in the 2014 fiscal year. Those are both facts.

      (Insert “XX% of statistics are made up XX% of the time” quote here)

  • Refugez

    Everything said in this article it true. I use to work for Gamestop as a store Mgr. and it is with out a doubt the worst company I have ever worked for. With that being said I have worked for thae past 20 years for a couple of companies all in leadership positions, and I can say I have never worked for a company that functions / dysfunctional like GAMESTOP before. The MANAGEMENT staff in my district and in other regions I have supervised in act more like high school students.

  • Refugez

    Everything said in this article is true. I use to work for Gamestop as a store Mgr. and it is with out a doubt the worst company I have ever worked for. With that being said I have worked for the past 20 years for a couple of companies all in leadership positions, and I can say I have never worked for a company that functions / dysfunctional like GAMESTOP before. The MANAGEMENT staff in my district and in other regions I have supervised in act more like high school students then paid professionals. Always trying to one up each other to upper management as opposed to working together to meet a comman goals. A District Manager thats in charge of training for the WHOLE region, but you would be lucky to see him once a month and this is comman of the whole company not just my former district / region. Gamestop host a conference once a year either in TX, or Las Vages and every year that was more of an education in how f’ed up company wide Gamestop is. What other company has the opportunity they had to basically be telegraphed what diriction the videogame industry is moving in for over 6 years (digital distrbution) and still can’t manage that transition with a six year headstart? The reason is they felt like they had a monopoly on the retail videogames industry. They felt that their “brand” was stronger then any other retailer out there when it comes to games / used games. Statements like those don’t come from me; statements like those come from Gamestop upper management during our weekly conference calls. I don’t feel sorry for Gamestop I feel sorry for the scores of workers they employ that have lost their jobs and future workers that will lose their jobs due to store closures as a result of GAMESTOP management’s gross incompetence.

  • Jordan

    They all (gamestop) thought they had us and got way too greedy.

    I used to shop there in the 90s before they got really big and i noticed how they tried to gouge everyone. Once they ran the other two stores that were here before them, it wasnt long before used games were a ripoff.

    Theres no way a used game is worth only 5 bucks less than a brand new game. Used games always used to be at or near half price of a new copy. Now if i go in there and see some crap game thats brand new for 20 bucks they will charge 15 even if its almost ten years old.

    They are a complete joke.