Jump to content

Gamestop stock plunges 30% in after-hours trading after earnings estimate shortfall and elimination of quarterly dividend


Recommended Posts

I wish I could see the future and see how long Gamestop has left. I imagine they will be around for most of the next gen console life. They could probably afford to downsize a little.  I have 8 Gamestops within 8 miles of my house. Seems excessive.

I had plenty of good and bad experiences to look back on from shopping there. Won't miss them at all now though. Just like Blockbuster. Fun times but tech changes. 

Link to comment
Share on other sites

I’ve been saying it for awhile, why we need more GameStop’s than McDonalds or other restaurants chains is insane.  Food is a convenience buy typically, so lots of locations make sense.  Gaming as a hobby is a luxury that people will drive at least a little while to shop for gaming stuff.  Paying all that overhead for so many locations makes no sense at all to me.

 

 

Link to comment
Share on other sites

15 minutes ago, JPDunks4 said:

I’ve been saying it for awhile, why we need more GameStop’s than McDonalds or other restaurants chains is insane.  Food is a convenience buy typically, so lots of locations make sense.  Gaming as a hobby is a luxury that people will drive at least a little while to shop for gaming stuff.  Paying all that overhead for so many locations makes no sense at all to me.

 

 

Gamestop has around 5,466 locations in the US while McDonald's has 13,905 locations.

Link to comment
Share on other sites

3 hours ago, DarkStar189 said:

I wish I could see the future and see how long Gamestop has left. I imagine they will be around for most of the next gen console life. They could probably afford to downsize a little.  I have 8 Gamestops within 8 miles of my house. Seems excessive.

I had plenty of good and bad experiences to look back on from shopping there. Won't miss them at all now though. Just like Blockbuster. Fun times but tech changes. 

 

I sincerely hope they hold on until a new Nintendo handheld or console releases.  My $170 gift card for trading in a PS4 (for a Pro) is starting to feel like dead weight.

Link to comment
Share on other sites

1 hour ago, Remarkableriots said:

Gamestop has around 5,466 locations in the US while McDonald's has 13,905 locations.

 

I understand that McDonalds has way more total locations around the country, but in the urban area around my house, I have more Gamestops then I do McDonald's, or damn near the same number.  In my hometown it was pretty much the same way.  Gamestop in a mall, gamestop outside the mall in a strip center, Gamestop a few miles down the road.  If I want a game, I will go in the mall to get what I needed. This was obviously moreso before the days of Amazon and Digital Sales and Delivery.  They could probably have 1/4 the number of Gamestops in some areas doing the same total traffic with way less overhead and labor involved. 

 

I just never understood the methodology in having so many locations all over the place.

  • Like 1
Link to comment
Share on other sites

3 minutes ago, JPDunks4 said:

 

I understand that McDonalds has way more total locations around the country, but in the urban area around my house, I have more Gamestops then I do McDonald's, or damn near the same number.  In my hometown it was pretty much the same way.  Gamestop in a mall, gamestop outside the mall in a strip center, Gamestop a few miles down the road.  If I want a game, I will go in the mall to get what I needed. This was obviously moreso before the days of Amazon and Digital Sales and Delivery.  They could probably have 1/4 the number of Gamestops in some areas doing the same total traffic with way less overhead and labor involved. 

 

I just never understood the methodology in having so many locations all over the place.

Same. In the areas I have lived in for the past 10-15 years, I can easily say I've seen many more Gamestops in a close radius than McDonalds. 

Link to comment
Share on other sites

This is near where I live.  This entire area is roughly a 15 minute drive from the far east coast to the far west reaches of the map.  This is also after quite a few of the Gamestops in the region have closed in the past few years.   If I can get to 16 Gamestops in 15/20 minutes, you have way too many Gamestops.  Could easily consolidate that to 5-10 all 10 minutes apart from each other, and drive up traffic to each remaining location.  With that many locations you're just cannibalizing your own customer base.

 

spNS7qyLYZdF_aFK_elzfJaYwU6LYr1-qd8gpMwn

Link to comment
Share on other sites

GameStop also needs better locations, IMO. Like, one is right across from a Walmart, about 200 yards away. The other is located in a Town Center. It is 3 stores down from Target, 300 yards south of Sam's club and Walmart, and 200 yards north of Best Buy.  That distance is very generous too. Shit might be even closer. The only thing GS offers that those locations don't is used games. Not sure if BB still :dab2:bles in the Trade-in & Used Game crap. 

Link to comment
Share on other sites

The last time i went in a Gamestop was when they had a sale on all games 14.99 and under and strangely many of the games were priced at 17.99.

 

Gamestop had always priced their shit in $5 increments before, so you could go in and find a ton of games at $14.99

 

Then they started pulling that "Pro Member" pricing bullshit and all the normal prices started looking like $17 or $18... So if you wanted to take advantage of their "sales" you had to pay for their pro membership.

 

That was the point i told Gamestop to go fuck itself and i havent been back.

 

Link to comment
Share on other sites

I never got their tactic of treating tech savvy customers, many of which may not be the most social people, like shit.  No one likes to be hustled or upsold constantly and it’s not exactly hard to find a video game in stock, that hasn’t been an issue probably since the 90s.

Link to comment
Share on other sites

1 hour ago, XxEvil AshxX said:

The last time i went in a Gamestop was when they had a sale on all games 14.99 and under and strangely many of the games were priced at 17.99.

Gamestop had always priced their shit in $5 increments before, so you could go in and find a ton of games at $14.99

 

Well last time I went it was either Gamestop or Best Buy and Gamestop always seemed to have new games for $10 more than Best Buy so I said adios and went to Best Buy for all my games.

Link to comment
Share on other sites

1 hour ago, finaljedi said:

I never got their tactic of treating tech savvy customers, many of which may not be the most social people, like shit.  No one likes to be hustled or upsold constantly and it’s not exactly hard to find a video game in stock, that hasn’t been an issue probably since the 90s.

 

I used to love acting like a clueless dad buying something for his kid, just to see how much bullshit the clerk had in him/her. It was incredible.

 

Not sure about other parts of the country, but the geeks in my neck of the woods would hire a girl based on her cuteness level and not her knowledge of the actual product, so i would have a bit of fun asking them stupid questions just to see what they said. 

 

Man, i really will be glad to see this place go lol.

Link to comment
Share on other sites

Did Gamestop buy up competitors years ago, like EB Games? Thats the only real reason I could see why they have so many damned locations.  Inherited all those locations that may have been tied to 10-20 year leases, and are stuck really until the leases are up.

Link to comment
Share on other sites

2 hours ago, Amazatron said:

Their brand new CEO was a complete train wreck on the earnings call.

 

Unless their business model completely shifts off video games and into tabletop games and random collectibles, they’re hosed.  Might be too late anyways...

I'm having a debate with a ResetERA poster regarding Gamestop's actual cash flow and the significance of the $728 million they received for the sale of their mobile division. 

 

It's true that the company does have $1.3 billion in cash on hand and has managed to pay down $178 million of its long-term debt with the proceeds from the sale, but its actual cash flow from operations was "only" $325 million last year.  Its operational cash flow has been declining year-over-year since 2016 and I see absolutely no way to reverse that trend with the changing digital vs physical environment.

 

When I pointed this out to him, he said that I'm "far too hung up" on the importance of the proceeds from that (one time/non-recurring) sale to the overall cash flow picture.

Link to comment
Share on other sites

On 6/5/2019 at 12:32 AM, crispy4000 said:

Might as well reap what rewards I can...
 

 

This is a really good deal IMO.  It was a featured deal yesterday on Steam for twice the price.

 

Crazy how fast this went.  Now only one store 90 miles away still has a copy.  Managed to snag one closer by.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...