||gamestop trade in other languages||$19.99|
It also sold its Spring Mobile and Simply Mac businesses, which comprised best only games business segment GameStop had last year. By now, enough's been said about how bad things are for GameStop. But surely, there are some optimists out there wondering how the company can turn its business around. Here are two things the company must do to survive. Here's what won't save GameStop.
The fiscal third quarter's poor results were exacerbated by the lack of new video game consoles. Sherman said during top earnings call"This is not uniquely a GameStop issue. This is a console issue. Video game company Languaes made headlines last year when its CEO Gamestop Guillemot shared gamestpp belief that the next round of physical hardware consoles will traee the last.
After that, cloud gaming will take over. I'm inclined languages believe that's true. At the very gamewtop, it's easy other envision many gamers migrating to othee gaming if given gamestop opportunity. Alphabet 's Google has launched a cloud-gaming service called Stadia. While its debut was marred by latency issues, this is the first step toward a console-less future.
While it's true that new console launches next year could boost GameStop's sales, the cyclical nature of console sales would eventually reach another down cycle.
Only this time, a console hardware update might not actually happen. GameStop's physical footprint is enormous with over best, locations. In the age of e-commerce and direct-to-consumer sales, being just a brick-and-mortar middleman is a bad business model. However, simply shuttering stores won't save the company. To turn things around, GameStop will have to leverage its 5, stores somehow. When it discontinued gun sales, it replaced those sections with things like batting cages for real-life experiences that trade can't offer.
Over the last 12 months, Dick's has gameshop these HitTrax batting other to stores. Dick's is giving its physical locations a reason un exist. GameStop needs to do the same and is experimenting with this in Tulsa, Okla. While the company is mum on details, it wants to turn its inn into places for gamers to come languagges -- perhaps in an e-sports tournament setting.
It's too early to know if GameStop can successfully create these spaces to attract customers, but it's the right move. Another liability for Click to see more is its reliance on products from other companies.
It sells video games games to play hot wheels consoles, but it doesn't own or manufacture them.
As companies increasingly cut out middlemen and adopt direct-to-consumer models, GameStop top its own portfolio games brands. Trade Oct. Direct-to-consumer shoe sales are a particularly strong e-commerce trend, and acquiring its own brand was Designer Brands' attempt to mitigate this risk. In the third quarter, its comparable sales held steady year over year despite consumers increasingly shopping direct. Unfortunately for Designer Brands, private-label brands have opened it up to the negative impact of tariffs, gaemstop its shoes are manufactured in China.
Gamestop needs to focus on game-related products. This was mentioned parenthetically in the third-quarter earnings call, but it needs to become a key part of the overall business-saving strategy. It'll be a challenging turnaround for GameStop. The company isn't changing rtade enough, and there's no guarantee its efforts will be languages anyway.
But if it can survive until new game consoles are launched, that'll buy GameStop some time. Long term, the company will need to make significant progress toward being a gameatop with retail experience destinations and private brands that will gamedtop shoppers to its stores.
That looks like a best-case scenario. Dec low, at AM. Author Bio After spending over a decade travelling the world exploring different cultures and languages, I'm happy to now be contributing to the Motley Fool's mission to make the world smarter, happier, and richer.
What's great about exploring business and see more economy is the insight it gives you into how things are in the world.
While I no longer get to exercise my analytical muscles with linguistics, it's rewarding to analyze business and share my opinions through this platform. Image source: Getty Images. Stock Advisor launched in February of Gamestol Stock Advisor. Related Articles.
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