Is Gamestop Going Out Of Business? (10 Reasons To Know About)

Gamestop’s stock has been on a free-fall since the company reported its fiscal Q3 2017 results last December. At the time, shares were changing hands at $19. The price of a share has plummeted to $7 and is likely to keep falling.

Gamestop is one of the largest video game retailers in the United States. However, recent data from BI Intelligence suggests that they might be going out of business soon.

The rumors are true. Gamestop is struggling to stay afloat in the current gaming industry. Gamestop is struggling with online and digital competition and must stay ahead of changes in consumer behavior to remain relevant. GameStop has announced that they will close 321 stores in 2019 and they plan on closing even more stores by the end of 2020. The company’s sales have shown that they aren’t nearly as profitable as they once were and this is a star in the decline of GameStop’s market share.

In recent years, there has been a huge growth in online gaming, especially on mobile devices like tablets and smartphones. While many people still want to go out to local brick-and-mortar stores for their shopping experiences, others are happy just finding games online or on their mobile devices without any store visit at all.

The news is not only bad for Gamestop employees but also for game publishers and retailers who are now scrambling to find new places to sell their products that will make them more money than what they currently make from Gamestop sales tax revenue.

Gamestop’s struggles have been apparent for some time now, but a major change happened last year with the release of the online digital distribution platform Steam.

While some people view the retailer’s impending demise as a sign of the end of retail in general, others are more optimistic about companies’ ability to adapt and change.

The retailer has been struggling for many years now, but it shows no signs of stopping. It was founded in 1976 and has been around for 38 years.

10 Reasons Of Why Gamestop Is Not Doing Well In 2021?

Gamestop is a retail gaming shop that operates in the US, Australia, Canada, and Mexico. The company has been in operation since 1984 and started with just two stores. Due to changing preferences, Gamestop has seen a decline in sales and profits over time. Gamestop is not doing well in 2021, due to changing consumer trends and harsh competition from other retailers like Walmart, Amazon, and Best Buy.

As the gaming industry evolved, so did the business model of Gamestop. The company’s revenue dwindled and it lost a lot of its customers due to the lack of new releases, online game services, and digital expansions.

According to a study by International Data Corporation (IDC), Gamestop will be replaced by digital retailers in 2021. This is because of its slow growth rate that narrows the player base.

Gamestop’s current decline was brought on by new trends such as the streaming service Steam, consoles without disc drives, and phones that now have VR capabilities.

Here are some highlighted reasons why Gamestop is not doing well:

1) The increased competition from e-commerce stores: A growing number of online retailers have taken a big bite out of the market share of Gamestop’s retail gaming shops, and its stores have been unable to develop new strategies to compete in a changing marketplace.

2) The rise of digital distribution: Digital distribution has led to more customers looking for games that can be digitally purchased and downloaded, which has trimmed Gamestop’s revenue.

3) The increase in piracy: Piracy rates have increased as digital distribution has become more popular, leading to more digital sales for developers and publishers who don’t want their games pirated.

4) Dwindling budgets for advertising campaigns have reduced the company’s efforts.

5) The company has not taken advantage of technological advancements such as card payments and mobile shopping apps.

6) Gamestop was not prepared for the shift in how people buy games.

7) Gamestop didn’t have the capacity to change with its competitors.

8) Gamers are shifting from buying physical games to digital, where they get unlimited access with a single purchase.

9) The prevalence of mobile gaming has made it harder for Gamestop’s brick-and-mortar stores to compete with online retailers.

10) In order to survive, more than one game stopper is required as there is a high demand for customers across different regions of the country.

11) The company has been suffering a decline in its revenue over the years primarily because of competition from digital distribution platforms and other forms of entertainment. Another reason for this decline is their lack of social media presence which they could have used to create a positive brand perception among their potential customers.

12) Game developers are moving away from retail shops to digital distribution platforms like Steam, Switch, etc.


The main reason behind the downfall of Gamestop is the growing popularity of digital gaming. Digital users can purchase their favorite game without leaving home. Gamestop’s main target audience is Generation X and Millennials who are more likely to purchase physical copies of their favorite game.

One way to make up for this loss would be to sell more mobile games. However, if we look at the recent release schedule of new mobile titles by Nintendo and Sony it’s hard not to think that they are preparing themselves for a future in which physical copies are less important than digital ones.