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Gamestop Executive Summary

1858 Words8 Pages

GameStop’s Struggle to Compete with Digital Gaming

Evan Orme
Department of Communications, Wayne State University
COM: 3300 Business and Professional Presentations
Professor Fatooma Saad
June 21, 2023

June 21, 2023

Mr. Matt Furlong
GameStop Corp.
CEO and Director
625 Westport Pkwy
Grapevine, TX 76051

Dear Mr. Furlong,

Thank you for consulting the company’s communication department on the decline of physical game sales at GameStop. The effects of this issue have a far-reaching effect on the company as a whole. Since the sale of video physical video games is the nucleus of GameStop’s business, necessary changes in the business model need to be made if GameStop is going to continue to operate as a highly profitable company. …show more content…

However, with advancements in technology including the convenience of online shopping and digital copies of video games being available to the consumer, GameStop’s sales have been steadily declining. Furthermore, GameStop’s stock price declined to an all-time low in April 2020. The pandemic in 2020 was the main factor why the stock price declined due to lockdowns and social distancing policies forcing consumers to turn to online retailers (Evangelos, V., Eleftheria, B., & Polydoros, T. 2022). When the stock price reached an all-time low, a short squeeze was created. Amateur stock market traders who are fans of GameStop began to buy stocks of the company to make up for the recent financial losses.
The decline of physical video game sales at GameStop involves several of the company’s stakeholders. The key stakeholders that are affected by the decline in physical game sales include GameStop’s customers, employees, and investors. The decline in sales has caused GameStop to close hundreds of stores in the last few years. This has created a loss of jobs for employees, lower wages, and higher prices for video games. Not only do these trends hurt the company financially, but they also damage GameStop’s reputation in the public …show more content…

Video game giants including PlayStation, Nintendo, and Xbox have started to sell digital versions of video games that gamers can download directly from their consoles. To make things worse, PlayStation and Xbox invented consoles without disc drives that do not require a disc to be used. Many gamers enjoy the convenience of downloading content directly to their console and eliminates the need to commute to GameStop to acquire new video game releases. This evaluation contains an overview of current issues GameStop is facing, how its stakeholders are affected, and recommendations GameStop can make to get back on stable financial

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