We wonder how GameStop is going to survive in the digital economy. We wish someone would examine that.
The article's definitely worth reading as it goes into the value provided to companies, gamers, and more by the GameStop model. It also shows how GameStop is really "partnered" with big names.
There's also a few suprises (like hardware is the least profitable sector of the GameStop world), and some warnings (it looks like no matter what, GameStop is going to take some hit in the future).
Worth your time.
My takes? Well hey, don't these always come up?
- As noted at some point, I think Game Stop has to take a hit – DLC is going to cut into their profit margins at some points. They might even be delaying the inevitable for now, but it's coming.
- Frankly they're the only game in town that can manage to be a "game store" which gives them powerful mindshare and pull. I think they'll survive.
- To survive they will, at some point, have to keep diversifying or scale back. This may provide you an opportunity career-wise (or a reason to leave).
- I would consider it possible, if unlikely, some big name may just buy GameStop and incorporate it into a larger effort – that's a mighty big footprint to get.
- A partnership of some kind could pay off for GameStop. It may sound crazy, but what could they do working with Steam, OnLive, etc.?