Current Events > Gamestop on the verge of being the next Blockbuster?

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this_is_wow_huh
06/02/17 10:30:45 PM
#1:


https://seekingalpha.com/article/4078014-gamestop-bankrupt-without-model-change

interesting article, a few excerpts


Today's GameStop shares many similarities with the now bankrupt Blockbuster.

GameStop's reliance on anti-consumer marketing and price-gauging tactics will ultimately backfire.

The churn-and-burn business model will bring the company down faster than the macro environment keeps it up.

What was previously a smooth-flowing stock in GameStop (NYSE:GME) is now a mess of gaps and interday jumps:

Patterns like this imply investor indecision - a tug-of-war between the bulls and bears. And in many such cases, when one side finally prevails, the stock begins an equally victorious rally (or selloff). Technicals can help us determine which way the stock will move in the short term.

It is tempting to start with the technicals to make sense of what the stock is telling us. However, I think the short-term movements of GameStop are not only going to be insignificant but also should be excluded from our analysis so we can focus on the more important issue, which is a long-term issue. Several long-term issues, actually, but I think in this article, I will be able to convince you that these issues are easily summarized as "not optimistic."

All you need to predict GameStop's future is a time machine. Actually, scratch that: You merely need to have a memory that spans roughly five years. Do you remember Blockbuster?

GameStop Is Blockbuster

Well Blockbuster is GameStop. Or GameStop is Blockbuster. You get the picture.

At least I hope you get the picture. Better business models, such as direct-via-mail and on-demand ousted the Blockbuster business model. Perhaps there was a chance for the company to adapt, but it never seized the opportunity, and the rest is history.

I want to make a direct comparison and say that just as Blockbuster was ousted by Netflix (NASDAQ:NFLX), GameStop is soon to be ousted by Steam - or Valve, more appropriately, the company that owns Steam. The company is private but certainly worth tens of billions of dollars, considering their annual revenue is already in the billions. But the comparison, which I will continue, does have one major flaw, which I will mention after the comparison.

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gamer_boy997
06/02/17 10:32:11 PM
#2:


I miss Blockbuster and Hollywood Video...

Netflix is the present and future though.
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Zack_Attackv1
06/02/17 10:33:25 PM
#3:


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PrinceDBF
06/02/17 10:34:06 PM
#4:


gamestop has seen the market change coming for years. it's why they started stocking their store with more toys, merchandise, used tablets/phones and started investing in other businesses. blockbuster never saw it coming. i think they'll be fine.
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apocalyptic_4
06/02/17 10:35:25 PM
#5:


Good
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NOM
06/02/17 10:36:02 PM
#6:


Hopefully.
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TheDarkCircle
06/02/17 10:36:28 PM
#7:


There is still a place for GS, the problem is as stated in the article is the non-consumer friendly tactics and other things. T

he fact that the employees 9 outta 10 times just completely lie and make arbitrary statements about video games. I get that they try to peddle protection plans or whatever, they're trained to do that. I have zero desire to engage with the neckbeard behind the counter about his opinion on what I'm purchasing. It's repelled me from buying anything there.

Lastly, all the stores are so uninviting and ugly, it only heightens the fact that I feel like a fucking loser walking into gamestop. They need to update their stores, and train their employees better. Do that and they'll be fine.
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this_is_wow_huh
06/02/17 10:37:01 PM
#8:


PrinceDBF posted...
gamestop has seen the market change coming for years. it's why they started stocking their store with more toys, merchandise, used tablets/phones and started investing in other businesses. blockbuster never saw it coming. i think they'll be fine.

good point, last 2 times I was in Gamestop I purchased merch and no games....the merch continues to increase, am def fine with that
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Typhon
06/02/17 10:41:03 PM
#9:


I stopped going there after the third time in a row that I had requested cash and was handed a card for store credit instead.

I wouldn't have sold the games if I didn't need cash, but now I can't get cash or get my games back.

First time they did it could have been a mistake, second time maybe, three times and I have to wonder if they've been instructed to do that.
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TheDarkCircle
06/02/17 10:43:57 PM
#10:


Typhon posted...
I stopped going there after the third time in a row that I had requested cash and was handed a card for store credit instead.

I wouldn't have sold the games if I didn't need cash, but now I can't get cash or get my games back.

First time they did it could have been a mistake, second time maybe, three times and I have to wonder if they've been instructed to do that.


Wait what? Why would you let them keep the games if they didn't give u cash? Just say forget it I don't want to sell it to you now
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GOATSLAYER
06/02/17 10:44:34 PM
#12:


TheDarkCircle posted...
There is still a place for GS, the problem is as stated in the article is the non-consumer friendly tactics and other things. T

he fact that the employees 9 outta 10 times just completely lie and make arbitrary statements about video games. I get that they try to peddle protection plans or whatever, they're trained to do that. I have zero desire to engage with the neckbeard behind the counter about his opinion on what I'm purchasing. It's repelled me from buying anything there.

Lastly, all the stores are so uninviting and ugly, it only heightens the fact that I feel like a fucking loser walking into gamestop. They need to update their stores, and train their employees better. Do that and they'll be fine.

That's never happened to me when I've gone to GameStop
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sylverlolol
06/02/17 10:44:39 PM
#13:


TheDarkCircle posted...
There is still a place for GS, the problem is as stated in the article is the non-consumer friendly tactics and other things. T

he fact that the employees 9 outta 10 times just completely lie and make arbitrary statements about video games. I get that they try to peddle protection plans or whatever, they're trained to do that. I have zero desire to engage with the neckbeard behind the counter about his opinion on what I'm purchasing. It's repelled me from buying anything there.

Lastly, all the stores are so uninviting and ugly, it only heightens the fact that I feel like a fucking loser walking into gamestop. They need to update their stores, and train their employees better. Do that and they'll be fine.

Yep. They need to actually invest in their employees. They need to pay them a bit better, make it so it isn't just the manager and assistant manager that get all of the hours, stop insisting they push the preorders, subs, etc. on people, yaddya yaddya.
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dummy420
06/02/17 10:45:29 PM
#14:


TheDarkCircle posted...
Typhon posted...
I stopped going there after the third time in a row that I had requested cash and was handed a card for store credit instead.

I wouldn't have sold the games if I didn't need cash, but now I can't get cash or get my games back.

First time they did it could have been a mistake, second time maybe, three times and I have to wonder if they've been instructed to do that.


Wait what? Why would you let them keep the games if they didn't give u cash? Just say forget it I don't want to sell it to you now

Yeah that one's kind of on you. Better the eBay or Craigslist it.
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darkdragoonflame
06/02/17 10:46:53 PM
#15:


I only go to gamestop for three reasons:
1. Preorder a collectors edition that's either exclusive or sold out at Bestbuy(and when Amazon Prime discount was still in effect).
2. Clearance items.
3. Cashing out Gamestop giftcards/trade credit for other giftcards. Good thing they have amazon giftcards.
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Capn Circus
06/02/17 10:46:57 PM
#16:


I hope not. I'm not much of a gamer anymore, but I enjoy the concept of walking into a store and buying new/used games.

Maybe I'm also behind the times, but for the big release titles, where else can you get them besides Gamestop? The moment they're legally allowed to be released, that is.

I know sometimes Walmart and Bestbuy have midnight releases, but Gamestop is essentially just games.
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__aCEr__
06/02/17 10:50:26 PM
#17:


I think it's going to be a while before they disappear completely but surely they're going to be shuttering A LOT of stores within the next console generation or so.

Years ago they were popping up all over the place. There's no way they can maintain all those stores with the way video game and retail distribution has changed.
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voldothegr8
06/02/17 10:57:24 PM
#18:


I compare Gamestops business model to Radio Shack more than Blockbuster. Aggressive counter tactics, stores every god damn where, peddling junk. Either way I don't give them much longer than the early 20's.
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Typhon
06/02/17 10:57:24 PM
#19:


TheDarkCircle posted...
Typhon posted...
I stopped going there after the third time in a row that I had requested cash and was handed a card for store credit instead.

I wouldn't have sold the games if I didn't need cash, but now I can't get cash or get my games back.

First time they did it could have been a mistake, second time maybe, three times and I have to wonder if they've been instructed to do that.


Wait what? Why would you let them keep the games if they didn't give u cash? Just say forget it I don't want to sell it to you now


They told me "it can't be undone" and "you signed the agreement". The second is definitely true, but it's kind of a dirty trick.

They (sometimes) ask "cash or store credit". I say cash. They tell me I need to sign the little computer screen thing. I do. They hand me a card.

The first time was no big deal, mistakes happen. Second time I complained, they said they couldn't do anything.

Third time I emphasised that I wanted cash, dude tried handing me a card and I got pissed. Asked for manager, who I asked to undo transaction. She threatened to call the cops if I wouldn't leave.

Same store, three different cashiers, within six months or so of each other.
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Capn Circus
06/02/17 10:57:58 PM
#20:


__aCEr__ posted...
I think it's going to be a while before they disappear completely but surely they're going to be shuttering A LOT of stores within the next console generation or so.

Years ago they were popping up all over the place. There's no way they can maintain all those stores with the way video game and retail distribution has changed.


I think you're right. The company will either have to adapt or eventually shutter. But I think for them to shutter (without adapting) would also have to mean physical copies of games becoming more and more obsolete.
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__aCEr__
06/02/17 11:02:33 PM
#21:


Physical copies will become obsolete. Surely by the time of the PS6.
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Zikten
06/02/17 11:03:46 PM
#22:


Fun fact: Blockbuster Video still exists in Alaska. It's the only state that has it
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Elmdor043
06/02/17 11:19:50 PM
#23:


GOATSLAYER posted...
TheDarkCircle posted...

he fact that the employees 9 outta 10 times just completely lie and make arbitrary statements about video games. I get that they try to peddle protection plans or whatever, they're trained to do that. I have zero desire to engage with the neckbeard behind the counter about his opinion on what I'm purchasing. It's repelled me from buying anything there.


That's never happened to me when I've gone to GameStop


Other than plans and the gamestop card, this doesn't really happen to me either, but it does happen. I recently went with a friend who was purchasing Fallout 4 and the guy almost got her to waste 50/60 bucks on the season pass before I told her she can wait and doesn't have to buy the dlc at that exact moment in time like he made it out to be. There was another time where she started checking out before I did and I still finished my transaction because my guy was cool and just chatted with me about my megaman decals and checked me out while hers tried to sell her a magazine, call of duty shit and whatever else they have to push so it's definitely a thing.
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Terra-enforcer
06/02/17 11:23:29 PM
#24:


Elmdor043 posted...
GOATSLAYER posted...
TheDarkCircle posted...

he fact that the employees 9 outta 10 times just completely lie and make arbitrary statements about video games. I get that they try to peddle protection plans or whatever, they're trained to do that. I have zero desire to engage with the neckbeard behind the counter about his opinion on what I'm purchasing. It's repelled me from buying anything there.


That's never happened to me when I've gone to GameStop


Other than plans and the gamestop card, this doesn't really happen to me either, but it does happen. I recently went with a friend who was purchasing Fallout 4 and the guy almost got her to waste 50/60 bucks on the season pass before I told her she can wait and doesn't have to buy the dlc at that exact moment in time like he made it out to be. There was another time where she started checking out before I did and I still finished my transaction because my guy was cool and just chatted with me about my megaman decals and checked me out while hers tried to sell her a magazine, call of duty shit and whatever else they have to push so it's definitely a thing.

It happens a lot less frequently than people claim. I've been to well over two dozen game stops across multiple states and even different countries, and I honestly don't recall having many problems with them. Definitely not with them hassling me. If they ask me something I say no thanks and keep moving. It's not like they're trying to badger you into signing a contract.

Though I will admit I hate what they sell as "new games." Several "new" games I've purchased there were nearly as bad as the pre owned units.
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kinetika_
06/02/17 11:25:26 PM
#25:


Didn't Netflix want to partner up or be backed by Blockbuster in the beginning?
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voldothegr8
06/02/17 11:26:30 PM
#26:


Terra-enforcer posted...
Elmdor043 posted...
GOATSLAYER posted...
TheDarkCircle posted...

he fact that the employees 9 outta 10 times just completely lie and make arbitrary statements about video games. I get that they try to peddle protection plans or whatever, they're trained to do that. I have zero desire to engage with the neckbeard behind the counter about his opinion on what I'm purchasing. It's repelled me from buying anything there.


That's never happened to me when I've gone to GameStop


Other than plans and the gamestop card, this doesn't really happen to me either, but it does happen. I recently went with a friend who was purchasing Fallout 4 and the guy almost got her to waste 50/60 bucks on the season pass before I told her she can wait and doesn't have to buy the dlc at that exact moment in time like he made it out to be. There was another time where she started checking out before I did and I still finished my transaction because my guy was cool and just chatted with me about my megaman decals and checked me out while hers tried to sell her a magazine, call of duty shit and whatever else they have to push so it's definitely a thing.

It happens a lot less frequently than people claim. I've been to well over two dozen game stops across multiple states and even different countries, and I honestly don't recall having many problems with them. Definitely not with them hassling me. If they ask me something I say no thanks and keep moving. It's not like they're trying to badger you into signing a contract.

Though I will admit I hate what they sell as "new games." Several "new" games I've purchased there were nearly as bad as the pre owned units.

Every store around here is like playing 20 questions, got tired of that shit. It all depends on management probably. There's 4-5 locations I've been to around the area and they all fucking suck.
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Elmdor043
06/02/17 11:27:47 PM
#27:


Terra-enforcer posted...

It happens a lot less frequently than people claim. I've been to well over two dozen game stops across multiple states and even different countries, and I honestly don't recall having many problems with them. Definitely not with them hassling me. If they ask me something I say no thanks and keep moving. It's not like they're trying to badger you into signing a contract.

Though I will admit I hate what they sell as "new games." Several "new" games I've purchased there were nearly as bad as the pre owned units.


In my experience, they do badger the fuck out of you when it comes to the gamestop card though. I usually get through a transaction fine by just saying no (I don't go often enough to care about it), but half the time they attempt to hook me up with a new one or look for a phone number anyway before finally getting what no means. That guy I was talking about who pushed the Fallout season pass (good guy by the way, don't get me wrong) did that very thing and when my number that was found the last time I went didn't come up he still insisted and used my friends number to get a discount. I appreciate the gesture, but damn, just let me check out and leave. I wouldn't pay if I wasn't comfortable with the price, you know what I mean?
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EyeWontBeFooled
06/02/17 11:31:23 PM
#28:


PrinceDBF posted...
gamestop has seen the market change coming for years. it's why they started stocking their store with more toys, merchandise, used tablets/phones and started investing in other businesses. blockbuster never saw it coming. i think they'll be fine.

Going back a little bit to their origins as an electronics boutique...
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Terra-enforcer
06/02/17 11:32:57 PM
#29:


voldothegr8 posted...
Every store around here is like playing 20 questions, got tired of that shit. It all depends on management probably. There's 4-5 locations I've been to around the area and they all fucking suck.

Yeah you must have the worst luck. I'm probably low balling it when I say two dozen. Never been a major issue at any of the places I've lived. Generally if you tell them "no thanks" or "that's all" you want they'll leave you alone. Frequently I don't even have to say that much.
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Joeydollaz
06/02/17 11:38:59 PM
#30:


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