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GameStop: new consoles could kill the channel

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The chain of troubled games GameStop appears to be heading towards its ultimate demise. With the next generation of consoles to come, management is throwing up slogans of perseverance, but they’re pretty dubious.

GameStop has already had to close a number of game stores and saw sales decline 26.7% in the spring. However, the corona crisis only contributed to part of the problems. It is mainly the change in sales channels that is causing more and more difficulties for the company. Because the number of players who buy their games for download on the Internet continues to grow.

“First of all: the new consoles have a motor,” said company boss George Sherman, after speaking on a conference call with analysts how to get the huge problems under control. Over the next seven years, new systems from Sony and Microsoft would help ensure continued digital and physical sales, according to a report from Ars Technica.

Hope in the second-hand market

However, this only partially corresponds to the facts. With the Xbox Series S and PlayStation 5 Digital Edition models, the two vendors will also bring to market devices that do not have a player and that only deliver content over the network. And there’s a good chance that’s a pretty big chunk of sales since they’re cheaper to buy.

However, there will also be a target group for the more expensive console variants with drives. GameStop is likely to be primarily of interest to users who would prefer to go for such a variant and accept the higher investments, as they can also buy second-hand games and then save. This in turn would be a very good thing for GameStops’ second hand business with its high margins. However, it is doubtful that this will contain the negative effects of download sales for long.

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Games, games, commerce, gamestop
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#GameStop #consoles #kill #channel

I am Robert C. James. A student of MSc in Computing (Applied) from Technological University Dublin (Dublin). I am a Computer Research Technologist, a Journalist and a Writer. I am mainly a Blogger Vlogger and a Creative Writer of all fields.

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