Current Events > GameStop enters Mult-year partnership with... Microsoft?

(+) Yeah! (+)

Uhh.... Interesting?

https://wccftech.com/gamestop-partners-with-microsoft-to-bolster-its-digital-ecosystem/

With the ever-growing importance of the digital market in the gaming industry, GameStop has been seen as less and less relevant going forward by analysts and investors in the past couple of years, as its shares tumbled down.
The company needed something big to turn the tide and today, it made an announcementthat could certainly fit the bill: a multi-year partnership with Microsoft to expand physical and digital game offerings as well as enhancing GameStop's infrastructure when it comes to technology.

Essentially, the company's business operations will now take place on Microsoft's cloud through Dynamics 365, Microsoft 365, and Teams, while associates will be equipped with Microsoft Surface hardware, too.
On the gaming front, GameStop stores will now sell the Xbox All Access subscription service and will therefore benefit alongside Microsoft from the 'customer acquisition and lifetime revenue of each gamer brought into the Xbox ecosystem'.
The press release includes prepared statements from four of the companies' chief executives, including Phil Spencer from Microsoft's gaming side.
George Sherman, GameStops Chief Executive Officer:
This is an exciting day at GameStop as we announce the advancement of an important partnership that capitalizes on the power of our operating platform and significant market share in gaming to accelerate our digital transformation; drive incremental revenue streams; and over time, further monetize the digital world of gaming. Since joining the Company last April, we have been on a mission to evolve our strategy to take advantage of our undisputed leadership position in gaming. Clearly, GameStop is a top destination for an entire spectrum of gaming products, and we are excited about the opportunity to leverage our capabilities in support of the launch of the next generation of gaming consoles and expand our reach and connection to the worldwide gamer community through this partnership.
Jim Bell, GameStops Chief Financial Officer:
We believe Microsofts integrated retail technology platform will enable the continued development of our frictionless omni-channel digital environment, providing customers with an exceptional cross-channel experience for all things video gaming. By standardizing on Microsoft 365 and Dynamics 365, all accessed with Microsoft Surface devices at our fingertips, we will be able to create a better connection with our associates and provide them with powerful new tools to deliver rich engaging experiences to our customers while significantly enhancing our cross-channel view of inventory ensuring the most efficient delivery of products to our customers.
Phil Spencer, Microsoft's Executive Vice President of Gaming:
For many years GameStop has been a strong go-to-market partner for our gaming products, and we are excited about continuing and evolving that relationship for the launch of the Xbox Series X|S. GameStops extensive store base, focus on digital transformation in an omni-channel environment and expert gamer associates remain an important part of our gaming ecosystem, and were pleased to elevate our partnership.
Matt Renner, Microsoft's President of US Enterprise Commercial:
GameStop has become a popular destination for gamers to find their favorite video games, hardware and accessories, socialize with others in the community, try out new games, and get educated on the latest tips and trends. By harnessing the power of Dynamics 365 and Microsoft 365, GameStop will be able to modernize its technology infrastructure and support store associates and fans in new and exciting ways. This partnership also provides GameStop with advanced retail management technologies that will drive operational efficiencies throughout its omni-channel platform.

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All-access is probably more valuable than paying upfront for MS right now.
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Next step: Microsoft just buys GameStop

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So... Do you guys think Microsoft will fully purchase GameStop in the future?

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Can you imagine if they expand Gamepass to be a hybrid digital/physical model where you could walk into a GameStop and just grab a game as a member and bring it back whenever? I know GameStop was playing around with this model a few years back and they never pulled the trigger, so maybe now is the time.

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Gamestop selling Xbox All Access is actually a very smart move. This could be a game changer for both of them.
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Gamestop has some real survival instincts, this is probably one of the smartest decisions they have ever made.

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DepreceV2 posted...

So... Do you guys think Microsoft will fully purchase GameStop in the future?

I haven't went to GameStop since 2011.
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This probably explains why EB Games is the only retailer offering Xbox All-Access in Canada.

s0nicfan posted...

Can you imagine if they expand Gamepass to be a hybrid digital/physical model where you could walk into a GameStop and just grab a game as a member and bring it back whenever? I know GameStop was playing around with this model a few years back and they never pulled the trigger, so maybe now is the time.

I never understood why they didn't do this in the first place. If they actually implemented some kind of rental service they could even increase TIVs because the earning potential of each game is much higher.
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Does Microsoft need to unload some of its cash on hand or something?

Failed Mixer deals, Zenimax, Gamestop. Microsoft is making some odd moves lol

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I read that as GameSpot and game in to post gamefaqs.gamespot.microsoft.com

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Offworlder1 posted...

Gamestop has some real survival instincts, this is probably one of the smartest decisions they have ever made.

This

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Jiggy101011 posted...

Does Microsoft need to unload some of its cash on hand or something?

Failed Mixer deals, Zenimax, Gamestop. Microsoft is making some odd moves lol

I may be using the wrong terminology, but what you're seeing is vertical vs horizontal market expansion.

Sony practices horizontal expansion - they want to make more money by having more exclusive games and thus more console sales.

Microsoft is practicing vertical expansion - if they can't beat Sony in game sales, they'll own the servers sony uses, the streaming services people use to talk about sony games, and the places where people go to buy sony games.

It'd be like if two paper mills were in competition where one decided to make more paper and the other decided to buy the lumber mill.

Both have their advantages and disadvantages, but in this case it's smart of Microsoft to go this route because they're so far behind in games.

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s0nicfan posted...

I may be using the wrong terminology, but what you're seeing is vertical vs horizontal market expansion.

Sony practices horizontal expansion - they want to make more money by having more exclusive games and thus more console sales.

Microsoft is practicing vertical expansion - if they can't beat Sony in game sales, they'll own the servers sony uses, the streaming services people use to talk about sony games, and the places where people go to buy sony games.

It'd be like if two paper mills were in competition where one decided to make more paper and the other decided to buy the lumber mill.

Both have their advantages and disadvantages, but in this case it's smart of Microsoft to go this route because they're so far behind in games.

Yeah it's like how Sony still makes money on every Xbone/XSX console and physical game sold because they have an ownership stake in the blu ray license.
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MS will eventually buy everyone

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DepreceV2 posted...

So... Do you guys think Microsoft will fully purchase GameStop in the future?

They are just going to buy the land and make them Microsoft stores.

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Tyranthraxus posted...

They are just going to buy the land and make them Microsoft stores.

But they already announced in June they're closing all their existing ones lol
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Bio1590 posted...

But they already announced in June they're closing all their existing ones lol

That was a covid-19 thing I thought. They'll open again eventually.

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Tyranthraxus posted...

That was a covid-19 thing I thought. They'll open again eventually.

Nah I thought they did it cause they are just going full digital as far as the stores

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Tyranthraxus posted...

That was a covid-19 thing I thought. They'll open again eventually.

No it was a full, permanent closure. They had to pay like half a billion to break the leases.
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yeah Gamestop needs to embrace digital in order to survive. Microsoft getting Xbox All Access in the biggest game retailer is a very smart move for them too.

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Reggie Fils Amie gonna gut Microsoft from the inside.

Returning_CEmen posted...

Reggie Fils Amie gonna gut Microsoft from the inside.

Lol more like he gets swallowed up and winds up working for Microsoft.

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If Gamestop plays this right they could be on to something.

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Their stock has been recovering. This bodes well for Microsoft too

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Good guy Microsoft just out there lending a hand to a friend on hard times.

Thinking about it I wonder if GameStop will start selling more Microsoft products like Surfaces and even Office 365 subscriptions and shit like that that they would have sold in Microsoft stores.

Imagine flipping games for a Surface lmao
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gamefaqs.microsoft.com

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Bio1590 posted...

Thinking about it I wonder if GameStop will start selling more Microsoft products like Surfaces and even Office 365 subscriptions and shit like that that they would have sold in Microsoft stores.

Imagine flipping games for a Surface lmao

They already sell used tablets and phones. Given that the natural evolution of a tech retailer seems to be from products to cell phone contracts, it wouldn't be shocking if they started not only selling NEW Microsoft products, but also acted as a contracting middleman for anyone interested in a windows phone. The fact that Microsoft is closing all their "Microsoft Stores" at least implies this is a reasonable path for them to take.

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s0nicfan posted...

They already sell used tablets and phones. Given that the natural evolution of a tech retailer seems to be from products to cell phone contracts, it wouldn't be shocking if they started not only selling NEW Microsoft products, but also acted as a contracting middleman for anyone interested in a windows phone. The fact that Microsoft is closing all their "Microsoft Stores" at least implies this is a reasonable path for them to take.

This is the path that resulted in the ultimate death of Radio Shack.

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Tyranthraxus posted...

This is the path that resulted in the ultimate death of Radio Shack.

but also the one that's kept Best Buy afloat.

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There are no more Windows Phones. They actually sell Samsung phones through their web store.

Any phones they're releasing use Android. The Surface Duo is Android-based.
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Bump

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