Dive Brief:
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Video-game retailer GameStop isn’t reporting its earnings until later this week, but shares have fallen on analysis from NPD Group that physical video game sales are falling.
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New consoles are taking a chunk away from its used-game sales, and kids are increasingly moving to mobile, a whole different game even from when they downloaded games from the web.
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The retailer has fought back — moving to also sell devices like smartphones and tablets, and bidding for a number of RadioShack stores at that retailer’s bankruptcy auction. GameStop also topped Hot Topic’s $17 per share offer with $20 per share, or $140 million in cash and equivalents to acquire GeekNet earlier this summer.
Dive Insight:
GameStop has fought the good fight when it comes to holding steady against online and digital sales, but things may be finally slipping out of its grasp. New consoles are taking a chunk away from its quite lucrative used-game sales, and kids are increasingly moving to mobile.
Used game sales could rebound as those current consoles age, unless digital sales continue to take over as the major pipeline for games. In any case, GameStop so far has moved to diversify its retail offerings. Perhaps the retailer won’t be so much a seller of video gamers but a more well-rounded seller of pop-culture goodies that also happens to sell games.