Online Videogame Sales Sink Stores

Posted: Jun 1 2019, 12:31am CDT | by , Updated: Jun 1 2019, 12:36am CDT , in Technology News

 

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Online Videogame Sales Sink Stores

Is there a future for Videogame stores?

When the topic of old model store failures comes to mind, old retailers like Sears and Kmart falling to the wayside are typically the first to roll off one’s tongue. However, new digital technology is threatening to shut down a new standalone store much in the same way that Amazon crushed Borders. This time, it is the videogame sellers that are seeing changing paradigms and witnessing the times changing right before them. Here’s how it is all playing out.

Videogame Sales in the Past

The way that videogames were bought in the past was rather simple. You would walk into a major shop like Game Stop, see what systems you liked and the games you wanted, and buy them. Most of the advertising was done in store, online, or in magazines. Yet, much like Borders, innovation has caught up to this model in the name of customer service. Specifically, videogame consoles now have the capacity to hold videogames in their onboard memory. Whereas older systems had no capacity for storage, modern systems are almost computers. Thus, videogames can be sold directly to the system and the middlemen are not making the cut.

The New Model

The modern model of videogame purchases can take place in many different ways. Most notably, you can go out to the store and get a physical copy of the game. This is still a preferred method for many people. After all, the buyers get to trade in their games and don’t have to sit through download times. However, with places like Game Stop offering fewer incentives for buy-backs on the video games and the waiting period on first day sales, more people are inclined to buy online.

GameStop is now nothing more than a middle man that is desperately trying to diversify its products in an effort to save their stores. While people that are used to standing in line at the store to get information are going to keep going back, the younger crowd, the people buying the vast majority of the games, prefer to sit at home and purchase. This is a clear case of technology catching up with a business that has nowhere to go in the industry. There will always be people looking to buy games and get information, but there are entire websites dedicated to information and juggernauts like Amazon offering to sell the games.

The downloadable tech that is built into video game consoles is going to put an end to the video games stores. It’s clear that these stand-alone stores are going to suffer the most since that is their “bread and butter”, so to speak. In particular, GameStop is likely going to face some kind of financial downfall as a direct result of digital downloads and the ease of ordering systems online. However, a lot of other retailers are going to suffer as well. The fact of the matter is that big brands like Wal-Mart and Target make money from videogame sales, and while they can carry the gift cards to keep the money for videogames in house, it is only a stopgap measure.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]i4u.com.

 

 

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