Tom Dougherty, CEO – Stealing Share
30 January 2019
No buyers for the GameStop brand. Why?
The GameStop brand is desperately looking for someone to buy it. Just come with an offer, it’s saying. Yesterday, the video game retailer announced that it had failed to find that buyer.
With that news, GameStop’s stock fell more than 25%.
Would you want to buy the GameStop brand? A brand that time has passed by? The video game industry continues its irreversible move toward downloaded content. There is really no need to have a physical copy of a game on any platform anymore. Yet the GameStop brand hinges on the idea of selling physical copies of video games.
I wrote that the GameStop brand was facing serious danger of becoming Blockbuster back in 2013. The writing was on the wall then and now it’s a gigantic neon billboard.
But, for whatever reason, the folks running GameStop don’t care or can’t see it. They are like a sad record store that thinks it can make a business selling J-Cole’s new album on CD.
“The main problem facing the GameStop brand is that it’s being viewed as old fashioned.”
The GameStop brand means old technology
The main problem facing the GameStop brand is that it’s being viewed as old fashioned. It’s at the point in which any new business model will fail unless there’s a serious rebrand. The current brand feels much like RadioShack or Kodak.
Granted, GameStop sells a bunch of consoles and used games. But I wonder if selling consoles and used games is a business model that can support 6,600 stores globally. Especially because there has been little innovation in consoles lately outside of the Nintendo Switch.
However, I’m pretty sure I can buy that device at Costco for less money.
It’s clear investors see the GameStop brand dying on the vine. No one wants to buy it because no one sees a way it can make money.
I’m sorry, GameStop, it might be time to throw in the towel.
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