GameStop has announced its plans for the future, and it’s not centered around the sale of video games. They stated as part of their latest revenue reports that they are beginning the process of transitioning to become a tech company with a broader focus. For those of you who have visited a GameStop store or visited their website recently, you probably won’t be surprised to hear this, as they’ve branched out to include a wide assortment of other products including clothing, general merchandise, and electronics, not all of which is related to gaming.
The gaming retailer now contends that it will no longer limit itself to just being a video game company but are going to be pursuing other avenues as well.
“GameStop has two long-term goals: delighting customers and delivering value for stockholders. We are evolving from a video game retailer to a technology company that connects customers with games, entertainment and a wide assortment of products,” the retailer stated in an official statement. “We are focused on offering vast product selection, competitive pricing and fast shipping–supported by high-touch customer service and a frictionless ecommerce and in-store experience.”
To accomplish this next step, GameStop aims to expand its market reach by growing their product catalog with products based around electronics, collectibles, toys, and other categories that go with the company’s product portfolio. In addition to this, the retailer is looking to grow its fulfillment operations to ensure speedier delivery. Having recently opened a massive facility in Pennsylvania, they also plan on opening another in Nevada sometime next year to support their plan.
GameStop is also aiming to flesh out its ability to deliver technology by “investing in new systems, modernized ecommerce assets and an expanded, experienced talent base.” They went on to say that they also intend to improve their custom service capabilities in the US.
The retailer has been moving in this direction for years now. It once had a hand in the mobile phone space through one of its subsidiaries Spring Mobile, which was sold for $700 million in 2018. Its Simply Mac division was also sold off in 2019.
GameStop’s recent drama surrounding its stock situation has made headlines. Earlier in the year, members of the popular subreddit WallStreetBets purchased their stock as part of a squeeze to propel the stock price to unforeseen heights, and because of this, the stock continues to trade at around $200 per share, which is only up about $5 per share at the same time last year. The company’s leadership has gone under significant changes, too, with billionaire and investor Ryan Cohen gathering a team of previous Amazon executives and other key leaders from the world of tech to run GameStop.
In the latest quarter’s reports, GameStop reported to have lost $63 million. This is a large improvement over the much heavier losses it suffered during the same amount of time the previous year. The company is currently making more money than before, even though it’s still in the red.