The videogame industry’s largest retailer, GameStop, is in talks with potential buyers, the company revealed earlier this week.
It’s the boldest acknowledgment yet of the company’s struggles in the changing retail landscape, seeing more sales and custom lost to digital downloads and online trading.
In fiscal 2017, GameStop reported a new loss of $105.9 million and while spokespeople express optimism and nod towards to the success of its ThinkGeek division and game hardware sales, the company’s game software sales – the larger arm to the business – has been losing steam for some time.
Digitisation is playing a large role in the dipping sales at GameStop. Both Microsoft and Sony now offer game streaming services, giving users access to a wide variety of titles for a low monthly cost. It’s a similar model to Netflix.
This has led to fewer physical products on shelves.
Meanwhile, GameStop chain of command has seen turmoil over recent years when long-term CEO Paul Raines died in March and interim CEO Michael Mauler lasted only a few months before resigning owing to ‘personal reasons.’
GameStop’s ThinkGeek arm is a specialist in pop culture offering collectables, Funko figures, trading cards, plush toys and more.
GameStop has warned that while talks to find a buyer are being held, no deal is guaranteed.