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Is The End Near For Gamestop?!?

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UPDATE: So it's come to my attention that CAMELOT331 who is the one to first report the news about Gamestop and their plans to close half their stores by the end of qrt 4 this year, also appears to be a bit of a former disgruntled employee of the Gamestop company. This doesn't automatically discredit his information, and he has demonstrated in the past having some insider insight about recent layoffs before they were officially announced, but we feel its important to note the part about being disgruntled, as that is something that might cloud ones judgment in their reporting of things about their former employee. He recently made a video where he claims people at Gamestop got him fired from his most recent employee for saying negative things about his former employee, he even acted a bit surprised about it though honestly its hard to tell if he was being sarcastic about that or not. (Yeah if your going to demonstrate a pattern of publicly talking bad about an employee, that defiantly could make it harder to get any kind of future employment). His entire channel seems to be dedicated to talking bad things about Gamestop and other retailers like Walmart.

So with that said we just want to stress once again as stated below, the part about stores closing and going in a different direction with the remaining stores is unconfirmed at this time. The parts about all the recent layoffs, and GameStop's financial struggles as they continue to deal with the recent shifts in the gaming industry towards a digital content download model have been well documented over the course of the last year through various mainstream media outlets. So regardless of how reliable CAMELOT331's info ends up being or not, the question posed about Gamestop's end being near still seems to be a viable one to me.

We will update this story once we hear more one way or the other.
 


While most people when they hear the name Gamestop think video games, in recent years they have really stepped up their game when it comes to carrying action figures and collectibles. Every time you turn around some toy company is announcing a new Gamestop exclusive. For Gamestop this in large part has seemingly been a way to try and help make up for the loss of video game sales as more and more people turned to online downloads or just ordering their games from places like Amazon. For the toy companies, Gamestop has become one of the places they turned to after the collapse of Toys R' Us for new retail shelf space to sell their products.

Despite this newfound partnership between Gamestop and the toy industy, things have not been going well for the once giant game retailer, at least if you've been reading the financial reports this past year they haven't. In efforts to restructure the company, back in early August they laid off around 200 employees across multiple divisions followed by second round of layoffs a few weeks ago which focused on 120 corporate staff positions.

Last week the company held it's annual manager's conference where apparently even more bad news was relayed to employees, news that over half their retail stores in the US will be closed by the end of Qrt 4. Stores making less than $800k will likely be on the chopping block. The remaining stores are said to become primarily retro and tabletop gaming stores where people can play vintage arcade games as well as things like D&D and HeroClix, which to me sounds like they want to be new the local comic book store without the comics.

Now we should note that this latest news about the store closures and going a different direction comes via Youtuber CAMELOT331, who has demonstrated having fairly reliable inside sources at Gamestop in the past when it comes to this type of news, but by know means do we consider this anything officially confirmed. You can see his video were he lays out everything he has heard about what is going on with Gamestop below.
 



So assuming this all turns out to be true, what does that mean for the future??? Well first of all, sadly it means a lot of people have or are going to be without jobs similar to what we saw when Toys R' Us went under. Hopefully most who have worked there for any period of time saw the writing on the wall well before this and already started to make other arrangements for their future.

As for the toy collecting community and all the yet-to-be-released exclusives, well for the most part there is likely still enough time for most or all of them to be released as planned. For those that might not get released, they likely would end up going to another retailer or be released online like we saw with many of the unreleased Toys R' Us exclusives.

Also according to CAMELOT arround 2k+ stores here in the US will be remaining open for the foreseeable future and even under the new rumored model for those stores, action figures and collectibles could very likely remain an important part of the inventory they sell, assuming those stores manage to stay open for any significant period of time.

Let us know in the COMMENTS SECTION, how often do you check Gamestop these days for your action figure needs?

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Since I don't live in the US I've never been to a GameStop, however, I do believe this is a general problem, and somewhat a natural thing since Blockbuster closed, and their business model was quite similar. With many videogame companies pushing for digital, Xbox even releasing a console without disk tray, the end of stores likes this seems to be inevitable.

Here in Mexico we have Gameplanet, but they don't really carry action figures other than the occasional Neca and SH Figuarts, so I don't think we rely that much on this kind of stores for our action figures. As for the US, my only reference are toy hunting videos, especially the ones from Esos Hunters, and they seem to regularly visit GameStop. 

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14 minutes ago, DylanRaven055 said:

Here in Mexico we have Gameplanet, but they don't really carry action figures other than the occasional Neca and SH Figuarts

Yeah, and other than the plushies and memorabilia, and obviously Pops there's not much to get there. I understand the need to up the cost at retail because of rent and stuff, but Game Planet is bound to the same fate if they don't start making changes. For starters, their preorders are more expensive, less exclusive, and not available on day 1. That can't compete against Amazon.

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UPDATE: So it's come to my attention that CAMELOT331 who is the one to first report the news about Gamestop and their plans to close half their stores by the end of qrt 4 this year, also appears to be a bit of a former disgruntled employee of the Gamestop company. This doesn't automatically discredit his information, and he has demonstrated in the past having some insider insight about recent layoffs before they were officially announced, but we feel its important to note the part about being disgruntled, as that is something that might cloud ones judgment in their reporting of things about their former employee. He recently made a video where he claims people at Gamestop got him fired from his most recent employee for saying negative things about his former employee, he even acted a bit surprised about it though honestly its hard to tell if he was being sarcastic about that or not. (Yeah if your going to demonstrate a pattern of publicly talking bad about an employee, that defiantly could make it harder to get any kind of future employment). His entire channel seems to be dedicated to talking bad things about Gamestop and other retailers like Walmart.

So with that said we just want to stress once again as stated before, the part about stores closing and going in a different direction with the remaining stores is unconfirmed at this time. The parts about all the recent layoffs, and GameStop's financial struggles as they continue to deal with the recent shifts in the gaming industry towards a digital content download model have been well documented over the course of the last year through various mainstream media outlets. So regardless of how reliable CAMELOT331's info ends up being or not, the question posed about Gamestop's end being near still seems to be a viable one to me.

We will update this story once we hear more one way or the other.

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The writing was on the wall here for quite some time now. Even though he was a disgruntled employee and Im aware of his channel, I could see him being right here in this instance.

GameStop has recently had that $5 action figure sale going on which indicates they want to move stock quick, thats a tell tale sign there but also with the current climate in retail in general right now this would not surprise me if this in fact happens.

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Interested to see how this plays out. The GameStop in my area is a reliable NECA distributer. Hopefully it’s not one of the stores on the chopping block.

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5 hours ago, memocromatico said:

Yeah, and other than the plushies and memorabilia, and obviously Pops there's not much to get there. I understand the need to up the cost at retail because of rent and stuff, but Game Planet is bound to the same fate if they don't start making changes. For starters, their preorders are more expensive, less exclusive, and not available on day 1. That can't compete against Amazon.

You can recall that when blockbuster closed in the US it took a couple years for the Mexican Stores to close as well, but if we go by that example its only a matter of time before Game Planet starts being in trouble (the Gamers stores have already announced they are closing) and seeing how Game Planet hasnt changed in any way for the better since Blockbuster closed its most likely going to go under just like Gamestop and the rest of videogame retailers.

In the end Its sad for the people who work for Gamestop but there have been so many comments from both consumers and ex-employees of abussing their workers, not fulfilling costumers preorders, and just overall bad business practices that its a wonder they havent gotten in financial trouble earlier, as a collector its always sad to see places where one can buy figure close but when it comes to Gamestop I cant help but think that its their own fault where they are headed because it seemed like they knew what the economic landscape was and knew what would happen if they stayed the same and never really cared to do anything about it. In the end it will also mean their exclusives will hopefully go somewhere that they will be easier to get.

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It seems more people want to do digital these days or shop online. Whether it's games, comic books or action figures. Personally I like going to my local stores to pick these things up, but that's just me. It's sad though that this is costing people their jobs.

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2 minutes ago, Dewonscott89 said:

It seems more people want to do digital these days or shop online. Whether it's games, comic books or action figures. Personally I like going to my local stores to pick these things up, but that's just me. It's sad though that this is costing people their jobs.

I would enjoy going into a Gamestop to look at stuff if their stores weren't always a jumbled mess. I can't stand it and often walk out feeling frustrated wondering if what I was looking for was actually there but just couldn't find it because it was buried in some odd place in the store. Some have tried to tell me that is done deliberately so you look around more but I say thats BS and makes me only want to go there if I absolutely have to. If they do manage to continue to operate they really should work on reorganizing their stores especially if they are going to be phasing out traditional video games.

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2 minutes ago, JayC said:

I would enjoy going into a Gamestop to look at stuff if their stores weren't always a jumbled mess. I can't stand it and often walk out feeling frustrated wondering if what I was looking for was actually there but just couldn't find it because it was buried in some odd place in the store. Some have tried to tell me that is done deliberately so you look around more but I say thats BS and makes me only want to go there if I absolutely have to. If they do manage to continue to operate they really should work on reorganizing their stores especially if they are going to be phasing out traditional video games.

So far I seen two stores like that. It is frustrating to look for something but can't find it because the store is a mess. If alot of these stores are a jumbled mess like this then they need to seriously get their act together. Especially if they're trying to stay open.

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There are not any GameStops near me. The last time I went to one was on a road trip about 4 months ago and it looked like they had not stocked much of anything new in the last decade.

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I really hope they don't. The GameStop nearest to me has really started increasing the amount of figures they sell the past year or so. Lots of Legends and Black Series. I have better luck finding new figures there than at Walmart. They also have some very nice sales from time to time. I just got a Figma figure there for $20 that's originally $80. 

The imports they offer is also another reason I hope they stay open. They started carrying Figma, Nendoroid, FIguarts, along with the Banpresto statues they usually carry, and my store is just this week starting to carry Gunpla model kits! 

I think a refocusing of the store to be a bit more like a Thinkgeek type of store would be cool and it looks like that's the way they are trying to go. Heck, at least hold out until the new consoles drop! I love the internet and online shopping, but with Blockbuster gone and Gamestop barely holding on, it feels like the end of an era and it's kinda sad. I always buy physical copies of games and movies, but I guess that mindset is pretty old fashioned. I hope Gamestop stays open. 



 

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2 hours ago, Thinwheat said:

feels like the end of an era and it's kinda sad. I always buy physical copies of games and movies, but I guess that mindset is pretty old fashioned.

I would say it IS the end of an era, and for those of us who are very used to getting everything in a store can be quite sad as you said. There's not much we can do about it thou, I mean, it's better for companies to sell digital versions of games and movies since they would save a ton of money and wouldn't have to worry about product staying in the shelves. It's just a new sales scheme that turns out to be more profitable, and "eco friendly". I'm not sure if buying physical is, like you say, an old mind set, or more like the choice we are slowly being forced to take due to market availability.

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Im ok with them going, Ive always been tired of going into their stores and being constantly greeted like they are selling me a car. I came here to look and usually I know what Im looking for. It got to the point of just belligerent. I also hated that they treated their new releases worse than their used. I had times where I would preorder my NEW games and they would already be opened yet the ones on the shelf are sealed and they would give me some hokey excuse why. Why do you have to open my new copy 'for me'? I just always hated how they handled things but most of the time they were my only way of getting those games at the time. I wont miss them when they are rubble. Their prices on figures are also always more expensive. Only thing I will miss is the idea of having any kind of physical games and collectors editions. They were pretty much the only company that did that and kept it alive with their trade in scam. Always looked at them as a necessary evil but I think of all the negative points and they just outweigh the positive ones. 

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9 hours ago, DylanRaven055 said:

I would say it IS the end of an era, and for those of us who are very used to getting everything in a store can be quite sad as you said. There's not much we can do about it thou, I mean, it's better for companies to sell digital versions of games and movies since they would save a ton of money and wouldn't have to worry about product staying in the shelves. It's just a new sales scheme that turns out to be more profitable, and "eco friendly". I'm not sure if buying physical is, like you say, an old mind set, or more like the choice we are slowly being forced to take due to market availability.

What sucks about being digital only tho is now games are more interconnected with the internet so some require a constant net connection, the companies have full control over those 'licenses' now so you dont even own your games and they can be pulled at a moments notice. Or if you arent informed they can be pulled from storefronts and you can never buy those games again due to license restrictions/expirations. The digital gaming age has its pros and cons alike so i guess we have to accept what we get i guess. Going digital also allows them to keep games at the price point and still make a profit since printing costs so much to do they are skipping that entirely now. Its definitely not as much a choice going digital and is more forced then ever before but there are still some avenues where you can buy physical but they are alot more rare and alot harder to obtain as some are limited releases. 

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Hmmm, everything shall fall I suposse, less stores to me to buy online. I just ordered once there and the experience wasn't that good and the costumer support (or lack of) was frustrating...oh yeah, the modern videogame industry sucks IMO, not only the games themselves, the experience is getting ruined too, but that's the future of that industry I guess, I'm sticking with the 6th gen and anything previous for that reason.

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On 9/6/2019 at 1:04 PM, JayC said:

UPDATE: So it's come to my attention that CAMELOT331 who is the one to first report the news about Gamestop and their plans to close half their stores by the end of qrt 4 this year, also appears to be a bit of a former disgruntled employee of the Gamestop company. This doesn't automatically discredit his information, and he has demonstrated in the past having some insider insight about recent layoffs before they were officially announced, but we feel its important to note the part about being disgruntled, as that is something that might cloud ones judgment in their reporting of things about their former employee. He recently made a video where he claims people at Gamestop got him fired from his most recent employee for saying negative things about his former employee, he even acted a bit surprised about it though honestly its hard to tell if he was being sarcastic about that or not. (Yeah if your going to demonstrate a pattern of publicly talking bad about an employee, that defiantly could make it harder to get any kind of future employment). His entire channel seems to be dedicated to talking bad things about Gamestop and other retailers like Walmart.

So with that said we just want to stress once again as stated before, the part about stores closing and going in a different direction with the remaining stores is unconfirmed at this time. The parts about all the recent layoffs, and GameStop's financial struggles as they continue to deal with the recent shifts in the gaming industry towards a digital content download model have been well documented over the course of the last year through various mainstream media outlets. So regardless of how reliable CAMELOT331's info ends up being or not, the question posed about Gamestop's end being near still seems to be a viable one to me.

We will update this story once we hear more one way or the other.

It's disappointing to see what looks like a reliable source of information distributing the propaganda of a ex-employee who is clearly bitter about being fired. First of all it's ridiculous to even consider a company closing any of it's stores that still have time left on their lease when said company hasn't filed and isn't anywhere close to filing for bankruptcy. Don't get too caught up in the stock price either. The fact that it's low make it easier/cheaper for the company to repurchase. And the next wave of consoles will clearly buy the company a few more years. Oh and if something like this was to happen there wouldn't be a lot of people in the loop on it either. Executives and Board of Directors probably, not anyone that would trouble themselves to talk to Camelot you can be sure about that. But you do you, negative articles are good for clicks aren't they?

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On 9/6/2019 at 2:15 PM, 80sboy4 said:

The writing was on the wall here for quite some time now. Even though he was a disgruntled employee and Im aware of his channel, I could see him being right here in this instance.

GameStop has recently had that $5 action figure sale going on which indicates they want to move stock quick, thats a tell tale sign there but also with the current climate in retail in general right now this would not surprise me if this in fact happens.

Companies put stuff on clearance all of the time. Get rid of old skus to bring in new ones, only have so much shelf space. If the stuff is being sold for less than what it costs the difference is probably a write-off. Just my guess.

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On 9/8/2019 at 1:20 AM, mostlyharmless said:

It's disappointing to see what looks like a reliable source of information distributing the propaganda of a ex-employee who is clearly bitter about being fired. First of all it's ridiculous to even consider a company closing any of it's stores that still have time left on their lease when said company hasn't filed and isn't anywhere close to filing for bankruptcy. Don't get too caught up in the stock price either. The fact that it's low make it easier/cheaper for the company to repurchase. And the next wave of consoles will clearly buy the company a few more years. Oh and if something like this was to happen there wouldn't be a lot of people in the loop on it either. Executives and Board of Directors probably, not anyone that would trouble themselves to talk to Camelot you can be sure about that. But you do you, negative articles are good for clicks aren't they?

Nice, you made an account to comment this.  Its obvious that Gamestop has had a losing business model for years. They cannot compete with Amazon who can do it faster and better.  If they want to keep in business they need to do some serious re-hauling.  I wouldn't put too much merit in their stock.  They are down $40 a stock in 5 years.

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Gamestop Confirmed To Close Up To 200 Stores In US By Years End As Company Continues To Lose Money

September 11, 2019
 
Rumors last week began surfacing that some major changes were coming to the former video game giant retailer Gamestop that included closing around half of their physical stores here in the United States.

Yesterday Gamestop held its earnings call where the CEO confirmed they would in fact be closing between 180-200 of their under-performing retail stores here in the United States by the end of the fiscal year. This will be done in an effort to try an optimize their remaining stores in increasingly digital world. It was reported that the retailer had somewhere around a 14 percent loss in global sales this past quarter. There are currently 5,700 stores across 14 countries in operation and they have already closed 195 stores since the second quarter of last year. They also in early August laid off around 200 employees across multiple divisions followed by second round of layoffs a few weeks later which focused on 120 corporate staff positions.

The initial news of the store closings came to light last week from a Youtuber who goes by the name of CAMELOT331, who was a former and seemingly somewhat disgruntled Gamestop employee.

CAMELOT331 has also reported some major changes for the remaining open stores will soon be implemented which includes things like becoming retro and tabletop gaming stores where people can play vintage arcade games as well as things like D&D and HeroClix. That has yet to be officially confirmed but CAMELOTT has admittedly been pretty dead on with his reporting on Gamestop up until this point.

In the past year or so Gamestop has been putting a lot of focus on selling action figures and collectibles, so if the retailer ends up going under in the near future as some fear, it will likely be another retail blow to the toy industry which is still trying to recover after the recent fall of Toys R' Us.

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On 9/8/2019 at 2:20 AM, mostlyharmless said:

It's disappointing to see what looks like a reliable source of information distributing the propaganda of a ex-employee who is clearly bitter about being fired. First of all it's ridiculous to even consider a company closing any of it's stores that still have time left on their lease when said company hasn't filed and isn't anywhere close to filing for bankruptcy. Don't get too caught up in the stock price either. The fact that it's low make it easier/cheaper for the company to repurchase. And the next wave of consoles will clearly buy the company a few more years. Oh and if something like this was to happen there wouldn't be a lot of people in the loop on it either. Executives and Board of Directors probably, not anyone that would trouble themselves to talk to Camelot you can be sure about that. But you do you, negative articles are good for clicks aren't they?

He may be disgruntled but he seems to be dead on. Its been officially confirmed by the CEO they are in fact going to be closing between 180-200 stores by the end of the fiscal year, and the reason I ran the story is because he has demonstrated multiple times having accurate info hence making him a viable source. He reported about the layoffs before they were officially announced.  I have no personal grudge against Gamestop in fact I hope they can find a viable way to restructure and continue on, but its my job to report news that impacts the action figure collecting community good or bad and this def will have an impact.

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This is really sad news to hear. I personally love Gamestop and all the nostalgia I get from visiting their stores. I have nothing but positive experiences from shopping there. What is alarming is going on Twitter and seeing some of the mentions and hashtags from many customers. Many customers complain about having their orders canceled, online technical issues, and lack of reachable customer service. I spent a good 20 minutes on Twitter and this was a common theme. I really hope Gamestop will be able to turn things around and evolve. Apple at one point in time was in deep trouble way back in the day, so I have faith that Gamestop can also pull through! 

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