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  1. #1
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    Gamestop to reduce it's focus on selling video games...

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    GameStop to increase focus on phones & tablets instead of video games

    by Andrew Yoon, Apr 23, 2014 3:30pm PDT Related Topics GameStop
    It may have "game" in its name, but retailer GameStop has announced plans to start increasing its focus on "gaming-adjacent" fields while lessening its reliance on video games. CEO Paul Raines dubbed the initiative "GameStop 3.0," saying that it plans on closing about 2 percent of its retail locations, while opening Spring Mobile and Simply Mac stores instead.
    The two GameStop-owned retail brands focus on selling AT&T-branded phones and Apple products. According to GI.biz, GameStop plans on opening over 200 Spring Mobile stores and 20 Simply Mac stores--essentially doubling the footprint of both franchises.
    By transitioning away from video games, the company hopes to be like other companies that have made similar leaps. Williams-Sonoma, for example, began as a kitchen equipment retailer that now owns Pottery Barn and West Elm. Perhaps the "stop" in their name meant that they were planning to stop selling games one day?



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    GameStop moving beyond games, preparing for the future

    CEO Paul Raines says company looking to markets like the Apple ecosystem and the wireless field for growth opportunities as part of "GameStop 3.0" initiative.



    by Eddie Makuch on April 24, 2014





    GameStop may be most commonly associated with video games, but it may not always be that way. During GameStop's Investor Day 2014 event this week, the retailer spoke at length about the next evolution of the retailer, which it is calling "GameStop 3.0."
    Games are already big business for GameStop, and CEO Paul Raines said this sector is expected to grow on the backs of the Xbox One, PlayStation 4, and Wii U. But at the same time, the retailer is setting its sights on much larger markets. Some of the "addressable markets" that GameStop is eyeing for future growth (in addition to physical and digital games) Raines said, are the recommerce market for non-gaming tech devices, the "Apple ecosystem," and the biggest of them all, the wireless market.
    GameStop is already invested in the Apple ecosystem in that it buys, sells, and accepts trades for various iOS devices at its stores. The company also owns Simply Mac, a sales and service specialist. Raines went on to say that it plans to expand the Simply Mac brand, and with the blessing of Apple to boot.
    "We have spent a lot of time in Cupertino with Apple leadership and we have their support to grow Simply Mac," Raines said.
    "Connected devices are forecast to go from $8 billion today to $50 billion in five years...the wireless growth opportunity for GameStop is only beginning" --GameStop CEO Paul Raines
    Concerning the wireless market, GameStop owns AT&T specialist Spring Mobile, and it also operates numerous Cricket Wireless stores in the United States. Raines boasted that GameStop is in fact the third largest AT&T deal in the US.
    The "wireless market is perhaps the most exciting market in the consumer space," Raines said. He went on to note that, "connected devices are forecast to go from $8 billion today to $50 billion in five years. And many will be sold in a store and available for trade and refurbishment at GameStop. The wireless growth opportunity for GameStop is only beginning."
    Raines added that GameStop's all-important buy/sell/trade model can apply to all of these new markets.
    Also during the presentation, Raines said the GameStop executive team has looked at other businesses that have moved into new markets to help it understand how best to do the same. He said cookware retailer Williams-Sonoma is a good example, as it successfully acquired Pottery Barn in 1986, and launched Pottery Barn Kids in 1999 and furniture store West Elm in 2003.
    Raines also called out VF Corporation, which began as an underwear company before taking on brands like Lee, Jansport, Timberland, and Wrangler, among others.
    Somewhat interestingly, a slide on Raines' presentation pointed out that VF Corporation later sold its original underwear brand to Fruit of the Loom in 2007. It's too early to say if GameStop will eventually get out of gaming altogether, but it's clear that GameStop is attempting to diversify its portfolio so that if such a day comes, the company will not only survive, but thrive.
    "So we are students of extraordinary business transformation stories. Williams Sonoma and VF are great examples to us of the potential of understanding your consumers and matching that insight to your own core competencies."
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  2. #2
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    Horrible decision. They should be closing an estimated 120 stores. The guy in the YouTube video goes to the same GameStop I go to and he said it was going to be one of the stores to close. It's bull****. Yeah we have other places to go to but they don't have an emphasis on new stuff. Like if arkham knight comes out with a collectors edition I don't think I could order it at gamexchange. This just means I'm going to have to drive farther. I feel bad for some of the people that work there. They are pretty friendly and know their stuff when it comes to games. Shame. I wonder if sending emails to the CEO would make him reconsider some of the closings if a lot of people emailed and petitioned.

  3. #3
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    To be honest I have not been in a dedicated video game store since BF3 released.

  4. #4
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    Well. Gamestop to stop focusing on selling games. Hmmmm...makes sense. Just close up shop if you are just going to completely change your business.




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  5. #5
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    Dunno bout the u.s. but there's a **** load of stores that do that anyways in the u.k. game, cex exchange, etc etc

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    For me anyway it's less of a issue with Gamestop closing but more of an issue for putting the guys that work there out of a job. Some of them have been there for several years and are very knowledgeable and friendly. They don't try to do the B.S you see videos about on youtube. In any case, someone will seize the opportunity to take Gamstop's spot and open up a new chain eventually. There are other options but just not ones that specialize in newer stuff and sometimes gamestop did get the better end of the deal with early access 'exclusives' Im just wondering if I can go to a store and order any collectors editions in the future at other stores. Time will tell on that. And not all the gamestops are closing in the area it's just that now on big titles there is going to be even longer lines because there wont be as many stores to even the crowds out, And I'll probably have to drive a little further to go to a gamestop. I guess it's just store loyalty. They've treated me right in the past, so I kept going back. Just hate it for some of the guys that work there.

  7. #7
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    Phones and tablets have made a dent in the dedicated console market to a certain extent. If gamestop sees more money in the long run operating an apple store instead of a game store, shareholders would have no issues taking that route.

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