Things May Finally Be Looking Up For GameStop
The story of GameStop isn't exactly your classic underdog tale. With a history of shady business practices, it's not always easy to root for the video game retail chain, even with Nintendo's beloved former President Reggie Fils-Aime on the board. Regardless, if you happen to be holding out hope that things will improve for GameStop, you're in luck.
The company recently gained three new board members as part of a partnership with RC Ventures, and it looks as though this move has bolstered confidence in its financial future. GameStop's stocks are currently at a five-year peak, and that's not the end of the good news. According to a report from Game Rant, market analysts believe that this could be an ongoing trend.
To put it into perspective, GameStop's future was looking bleak at $4 a share during the Summer 2020. With stocks now surging as high as $38, it's possible the chain may be able to reclaim its former glory.
It's no secret GameStop has been struggling in the recent past; after losing 300+ stores in a year, it's hard to feel optimistic. Aside from its generally negative reputation, physical media, and thus physical game stores, are going the way of HD DVD, meaning the company will have to adapt in order to stay relevant.
Back in Nov. 2020, things really weren't looking good for GameStop. Before joining, one of the recent additions to the board, Ryan Cohen, wrote a letter urging its members to reconsider its business model. Cohen argued for less of an emphasis on retail locations and a greater focus on digital sales. While Cohen was feeling less-than-optimistic a few months ago, the sudden upturn is a reflection that the company is currently in good hands.
Joan Verdon of Forbes theorized that investors feel more confident with Cohen at the helm. After all, he was already able to go against the odds by beating Amazon in the pet supply market with his company Chewy, so why couldn't GameStop soar to similar heights? Considering his past success, those who have their eye on GameStop are expecting similar results. With that said, why should gamers care?
Competition is always a good thing, and even if some people may not love the store, it motivates other retailers to keep their prices competitive as well. It's good to have a big player in the video game retail world that will fight for your money. This means more deals, more sales, and more games — in theory.
Love it or not, it looks like GameStop may be here to stay. Just don't expect to make a fortune off your used games.