Things are not looking good for the video game retailer: Gamestop. As we’re approaching the holiday season, it’s not a good sign when Gamestop announces store closures. We’re about to start a holiday season full of sales for the next-generation consoles with the Xbox Series S, Xbox Series X, and PlayStation 5.
Not only will there be sales for the next-generation consoles and their games, but there’s also most likely going to be an influx of trade-ins for people dumping their current-generation Xbox Ones and PlayStation 4s in order to offset the cost of the next-generation consoles.
Unfortunately, this year hasn’t been great for brick-and-mortar retailers. While GameStop does offer online retailing, it’s nowhere near where it could potentially be when it comes to dedicated online retailers like Amazon. It looks like Gamestop is going the way of Blockbuster after announcing the closure of over 320 stores in 2020. That’s 320 stores that won’t offer the next-generation consoles as gamers scramble to look elsewhere for the Xbox Series S, Xbox Series X, and PlayStation 5.
The news doesn’t get any better for Gamestop employees as their company has announced even more store closures bringing the total to almost half a thousand in 2020 alone with more planned closures in 2021. Could this mean GameStop is headed for bankruptcy?
Gamestop can’t exactly blame the current global pandemic for their issues. Gamestop had been struggling for some time even before the Coronavirus came around. It doesn’t help that GameStop doesn’t have as strong of a digital presence as they should have. Many wonder why they’re not trying to compete with online retailers such as Amazon when it comes to improving their online presence. It also doesn’t help that the next-generation consoles will release digital-only versions that remove GameStop as the middle-man. It also removed pre-owned sales and trade-ins, one of GameStop’s biggest pulls. What does GameStop need to do differently in order to keep itself from its downward spiral?