GameStop Growing Its Business Through Tech Not Gaming

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CNET is reporting that Gamestop will be opening another 300-400 stores over the next year. But these stores will be selling Apple products and other mobile devices. We all know GameStop as one of the biggest gaming retailers out there, they’re not hard to find. Well, the company is aiming for a broader growth footprint branching out from gaming products to technology products. GameStop’s “Technology Brands” division already operates 200 of these types of stores in the United States and they generate around $63 million dollars in annual revenue. And let’s face it, technology products, especially mobile, wearable and portable products, are just growing in popularity and demand so it seems a natural way to go.

But what’s going on with the gaming side of the business? CNET reports that GameStop is pulling back its gaming presence and reducing store count by 2 percent. Is the gaming business looking bleak? Seems to me gaming hasn’t lost its popularity, with the recent releases of Titanfall and the new Diablo. So that might point to digital game purchasing as the cause of GameStop’s pull back from the gaming market. Our own Justin Jelinek wrote a piece just a few weeks ago about digital game purchases you just might check out. Whatever the cause, GameStop is at least actively re-positioning itself to maintain a presence and the market is taking notice as shares are up four percent. I still believe that DGP’s are the future, physical media is going to go away sooner than later and GameStop is simply keeping ahead of the curve.

What’s do you think about GameStop moving into tech retail and stepping back from gaming retail? Has GameStop ever been relevant to you? If they offered tech products would they become relevant to you? Let us know in the comments below or on Google+, Twitter and Facebook!

Source: CNET. GameStop

Last Updated on November 27, 2018.


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