As Digital Marketplaces Become Norm, GameStop Feels the Crunch

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More and more consumers are not buying physical copies of games, even for their physical consoles—they’re simply downloading them from the internet.

It’s cheaper and more convenient for players, but brick-and-mortar retailers are feeling the pinch. GameStop is a shining example: a business built almost exclusively on selling physical copies of games.

Sales are falling in the double-digit range and the company’s stock has been halved in less than two years. As a result, GameStop plans to close more than 150 stores this year alone.

GameStop’s plan to stop the bleeding isn’t just to bolster ecommerce, but to rethink physical experiences. The company’s collectibles business is growing and actually intends to add more collectible stores.

The company isn’t in danger yet—it remains profitable and generates sales in the billions of dollars—but the shift shows that no business is immune to digital disruption.

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