GameStop: Difference between revisions
Chrisolivera (talk | contribs) →Competition: This is conjecture and not fact and was not verified through the company. |
Chrisolivera (talk | contribs) →Merger with EB Games: This is conjecture and not verifiable through the company. |
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===1996 closures=== |
===1996 closures=== |
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The day after Thanksgiving 1996 approximately 100 Babbage's and Software Etc. stores closed their doors. The remaining merchandise from these stores was shipped to 100 of the remaining stores that would participate in a massive "going out of business" sale throughout December. These 100 stores would close for the last time on Christmas Eve, and all merchandise left would be shipped back to corporate headquarters by New Year's Eve. The company would be pared back to about 600 of its best performing stores. |
The day after Thanksgiving 1996 approximately 100 Babbage's and Software Etc. stores closed their doors. The remaining merchandise from these stores was shipped to 100 of the remaining stores that would participate in a massive "going out of business" sale throughout December. These 100 stores would close for the last time on Christmas Eve, and all merchandise left would be shipped back to corporate headquarters by New Year's Eve. The company would be pared back to about 600 of its best performing stores. |
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===Merger with EB Games=== |
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On April 18, 2005, GameStop and EB Games announced that they had entered into a "definitive agreement and plan of merger". After shareholders and US regulatory agencies approved the merger, it closed on October 10 of that year with the agreement that the companies would be run separately, but not as they had been in the past. To ease the transition process of the two companies being run as one, it was agreed upon that the two separate entities would not merge operating activities until the new fiscal year which starts February 1; this also included maintaining two separate distribution centers. At the beginning of the following year, operating activities of the two companies was integrated, starting with the realignment of districts and the closure of EB's West Chester, PA corporate office. |
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===Acquisition of Rhino Video Games=== |
===Acquisition of Rhino Video Games=== |
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Revision as of 00:20, 31 January 2010
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| Company type | Public (NYSE: GME) |
|---|---|
| Industry | Electronics stores |
| Founded | 1984 (as Babbage's) in Dallas, TX |
| Headquarters | Grapevine, TX, U.S. |
Key people | Dick Fontaine (Executive Chairman), Daniel DeMatteo (CEO), J. Paul Raines (COO), Cathy Smith (CFO) |
| Revenue |  $8.8 billion USD (2008)[1] |
−311,600,000 United States dollar (2023)  | |
| 6,700,000 United States dollar (2024) | |
| Total assets | 2,709,000,000 United States dollar (2024) |
Number of employees | 48,000 |
| Website | gamestop.com |
GameStop Corporation (NYSE: GME) is an American video game and entertainment software retailer. The company, whose headquarters are in Grapevine, Texas (a suburb of Fort Worth), United States,[1] operates 6,200 retail stores throughout the United States, Canada, Australia, Ireland, Denmark, Finland, France, Germany, Italy, New Zealand, Norway, Spain, Austria, Puerto Rico, Switzerland, Portugal, Sweden and in the United Kingdom. GameStop opened around 400 new stores for the 2009 business year.
The company operates retail stores under the name GameStop, EB Games, Micromania and MovieStop. In addition, the company runs two e-commerce websites, GameStop.com and EBgames.com, and also Game Informer magazine, GameStop's proprietary video and computer game publication. In addition to video and computer games, GameStop sells magazines, strategy guides, and other related merchandise. A major source of the company's profit is also buying used games from its customers and selling them back at a profit.
History
GameStop traces its roots to Babbage's, a small software retailer that started in Dallas, Texas in 1984. The movements that made Babbage's into GameStop started in 1994 with a series of mergers between Babbage's and several other software retailers. The first was with Software Etc. in 1994[2], the second was with Funcoland stores in 2000, and the third was with the Gamesworld franchise in Ireland and in the United Kingdom and in 2008, the merger of Electronics Boutique in 2005, and the merger of French-based Micromania, taking six competing, major software retailers and placing them under a single corporate umbrella.
When Babbages merged with another stalling software retailer, Software Etc., in 1994 [2] the combined company was named NeoStar Retail, but the two halves continued to operate as if they were separate entities.
The combined management of the newly formed entity developed a classic case of the right hand not knowing what the left was doing. This ultimately caused NeoStar to go into Chapter 11 reorganization in early fall of 1996. At this point the company had approximately 800 stores in the United States. Several potential buyers of NeoStar's assets emerged.
History of stock during the Late-2000s recession
Like Hot Topic, Game Stop's stock bottomed out in November during the Late-2000s recession and while the major US averages began to finally turn around druring spring 2009, both stocks surged but lost much of their value during the next several months. Game Stop hit its recession high of $32.42 on April 9, 2009. Like Hot Topic, Game Stop's stock plunged during the next 3 months. By July 10, 2009 Game Stop's stock had plummeted to $20.44 a loss of about 37% from the April 9th's close. Unlike Hot Topic who's stock stayed rather flat during the next several months, Game Stop's stock surged again. By October 19, 2009 Game Stop's stock had risen to $28.16 a surge of about 38%. Things seemed to be looking up for the company but the worst was yet to come. Between October 19, 2009 and November 4, 2009 Game Stop's stock had dropped to $23.74 a drop of about 16%. During the rest of the month of November the stock remained rather flat. Black Monday sails reports came in slightly below estimates. Many retail stocks plunged after the major shopping weekend. Game Stop's stock closed at $25.60 on November 25, 2009. During the next month and a half Game Stop's stock would drop 20% to a 13 month low. During the next 14 days after November 25 Game Stop's stock fell 19% to $20.82. During the next month Game Stop's stock seemed to be turning around. Between December 9 and January 6 Game Stop's stock rose by 15% to $24.03. After releasing a drop in profit from last year's holiday season. During the January 7th session Game Stop's stock plunged 15% to the lowest close sense December 8, 2008 a 13 month low at $20.46. Stocks did not turn around during the January 8th session either, Game Stop ended down 0.83% to end at $20.29. The week of January 18th through 22nd was horrible for stocks in general after concerns about China's inflation and President Obama's proposal to limit size of banks pushed most stock spiraling downward. Game Stop's stock lost 2.29% of its value during this volatile week. By the end of the week, Game Stop's stock had fallen to $20.03, 26 cents below its previous recent low. It ended at a new, near 14 month low, with the lowest close sense December 1st, 2008. The stock is currently up 14% from its recession low of $17.50 which occurred on November 20th, 2008 and down 65% from its 2 year high of $57.04 which occurred on April 17th, 2008. It is also down 38% from its recession high of $32.42 which occurred on April 9th, 2009.
1996 closures
The day after Thanksgiving 1996 approximately 100 Babbage's and Software Etc. stores closed their doors. The remaining merchandise from these stores was shipped to 100 of the remaining stores that would participate in a massive "going out of business" sale throughout December. These 100 stores would close for the last time on Christmas Eve, and all merchandise left would be shipped back to corporate headquarters by New Year's Eve. The company would be pared back to about 600 of its best performing stores.
Acquisition of Rhino Video Games
On January 4, 2007, GameStop Corp. officially purchased Rhino Video Games from Blockbuster and the stores were renamed GameStop during a remodel period lasting through late Spring 2007.
Criticism
GameStop has received criticism for its new-game policy and its trade-in policy. GameStop's new-game policy is to remove a single new game from the case and store it in a sleeve in a drawer behind the cash registers. Consumers complain that games being sold in this fashion are not new, and that it is false advertisement (although some games that come in other retail configurations, i.e. Collector's/Anniversary Editions, do not have the game removed from in-box). Some people have also claimed that game media has been obtained with flaws, such as scratches on discs. This can be due to the company's "employee checkout policy" for used media.[3] The company allows employees to check out games two weeks after its initial release. Check-out is not limited to used games. Employees must buy any merchandise that is damaged during the check-out period. As of recently the check-out policy has been changed, and now does not allow check outs on new games.
Criticism for the company's used-game policy stems from the buyback value and the resell price. Games are usually bought from the consumer at a low price and are often sold at a much higher price, similar to a pawnshop or used car dealer. GameStop has also been criticized for their removal of games for older systems such as the NES, SNES, Nintendo 64, Sega Genesis, Original Game Boy/Game Boy Color, PlayStation, Dreamcast, and from the last generation of consoles like Xbox.
Acquisitions in other countries
Norway
On April 6, 2008, GameStop Corp. officially purchased 51 stores from the Dutch entertainment company Free Record Shop. Throughout the summer of 2008, most of the stores were rebranded to GameStop.
France
In October 2008, GameStop announced it would purchase France’s leading video-game retailer, Micromania, from the L Capital equity fund for $700 million, including debt.[4] The purchase of Micromania will add 332 locations (boosting locations in Europe to 1,077 total) and expand GameStop into France for the first time. Micromania President Directeur General Pierre Cuilleret will keep his current post.[5] GameStop financed the purchase with cash on hand, credit, and $150 million loan from Bank of America.[6]
This acquisition took place in November 2008.
Other brands and concepts
Game Informer
Game Informer is a magazine owned by GameStop, Inc. and primarily sold through subscriptions sold at GameStop locations. It is the most-subscribed video game magazine, and one of the top fifteen highest-circulation magazines overall, in the United States. Purchasing a subscription to the magazine also nets the subscriber the Edge card, GameStop's customer appreciation card, which increases all store-credit trade values by 10%, and discounts all used accessories and games by 10%, and gains them access to special content on the Game Informer Website.
Criticism has come in the from many sources that the magazine subscription numbers have been over inflated by use of retail sales tactics to drive customers to subscribe in order to receive discounts on in store products (force feeding the subscriptions) and thus do not directly represent a subscriber base that has actually desired the magazine. Other criticism has come from sources stating that the magazine is heavily biased based on product promotion for their retail locations and is nothing more than a glorified advertising catalog.
Trade-Ins
GameStop has a significant offering of used games that it currently buys back from customers. At times, it increases the buy back value of games for purchases on new releases.[7]
MovieStop
MovieStop stores focus on selling movies rather than games, with a structure similar to that of a GameStop. They buy, sell, and trade movies. MovieStop offers an array of movies, both used and new, in DVD, Blu-ray Disc, and Universal Media Disc formats. As of July 2009, there are 46 MovieStop stores across the United States, including those in Delaware, Pennsylvania, Alabama, Virginia, Georgia, Massachusetts, New Jersey, Maryland, North Carolina, and Florida. Also, similar to GameStop's policy with games, customers do not need a case to trade movies. However, at MovieStop, an item traded without its original case yields less store credit or cash than an item with its original case.
MovieStop contracted E-Play to produce kiosks that buy, sell, and rent movies. These are normally found in GameStops in the midwest and southeast of the United States[citation needed] . They exchange your DVDs or Blu-Rays for GameStop store credit. The kiosk pricing follows GameStop rules, however the kiosk itself does not sell disks in cases. If you wish to have the case you must ask a GameStop employee to fetch it. You may also rent movies from the kiosk.
MovieStop machines found outside of GameStop stores will only accept disks in return for the credit of the store they are found.
GameStop TV
GameStop TV is the in-store television network run by GameStop in partnership with CBS Outernet. CBS has upgraded 3300 stores (as of November 2009) to a digital network.[citation needed] Each digital store has a High Definition Monitor (40") run by a PC with a speaker system designed to provide audio throughout the store. The PC checks in a regular intervals during the day back to a server looking for new content.[citation needed]
GameStop TV features programming designed to speak to the consumers shopping in GameStop stores. Each week brings content segments about upcoming video game releases, interviews, tips and tricks as well as lifestyle content provided by CBS. CBS Outernet also manages advertising sales for the network as a division of CBS Outdoor. [citation needed]
Pre Order Bonus
GameStop has recently attempted to raise it's amount of pre orders by including exclusive in game bonuses, available only if the player got the game pre ordered. Such bonus include a "Gold Plated Lancer" for those who pre ordered Gears of War 2, "Terminus Armor" for those who pre ordered Mass Effect 2, a baseball bat melee weapon for those who pre ordered Left 4 Dead 2, the "Harvester" weapon for those who pre ordered Darksiders, and exclusive access to the M1 Carbine right from the beginning of the multiplayer in Call of Duty: World at War.
See also
References
- ^ "Contact Us." GameStop. Retrieved on December 8, 2009.
- ^ a b COMPANY NEWS; Two Software Peers Combine Their Specialties - New York Times
- ^ http://kotaku.com/5205385/gamestop-sells-played-games-as-new-sources-say-practice-could-be-illegal
- ^ http://www.nytimes.com/2008/10/02/business/worldbusiness/02fobriefs-GAMESTOPACQU_BRF.html?_r=1&ref=technology&oref=slogin
- ^ http://www.forbes.com/feeds/ap/2008/10/01/ap5493728.html
- ^ http://news.yahoo.com/s/nm/20081001/tc_nm/us_micromania_gamestop
- ^ Henry. "GameStopping". 3xGamer. Retrieved 2009-10-25.