GameStop lays off 120 corporate staffers as stock continues to tumble

guest · Aug 20, 2019

GameStop lays off 120 corporate staffers as stock continues to tumble
Game Informer staff also affected by retailer's "Reboot Initiative"
August 21, 2019
https://arstechnica.com/gaming/2019...porate-staffers-as-stock-continues-to-tumble/

Major video game retailer GameStop has announced layoffs for 120 corporate staffers, representing a 14% reduction of the company's "total associate base at our company headquarters as well as at some other offices."

“While these changes are difficult, they were necessary to reduce costs and better align the organization with our efforts to optimize the business to meet our future objectives and success factors," GameStop said in a statement.
It's unclear if that number includes staffers at GameStop-owned Game Informer magazine, many of whom took to Twitter today to share news of their unexpected layoffs.
Can the sinking ship be raised?
The layoffs continue a string of bleak news for GameStop, which still maintains well over 5,000 storefronts across 14 countries.
As of this writing, GameStop stock is trading at $3.42. That's down 17% from a month ago, nearly 80% from a year ago, and almost 94% from its peak in late 2013.

In June, new GameStop CEO George Sherman outlined a three-point "Reboot" plan to turn things around at the struggling retailer.
Those kinds of changes might not be enough to save GameStop from the seemingly inexorable move towards downloads and Internet streams that claimed other physical media retailers like Suncoast and Tower Records.
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guest · Sep 11, 2019

Video game retailer GameStop closing 180 to 200 stores globally
September 10, 2019
https://eu.usatoday.com/story/money...19-retailer-closing-up-200-stores/2279343001/

During Tuesday's quarterly earnings call with analysts, GameStop chief financial officer Jim Bell said the company was "on track to close between 180 and 200 underperforming stores globally by the end of this fiscal year."
Bell also said there have been 195 store closures since last year.

GameStop CEO George Sherman spoke of right-sizing the company and said there were “recent efforts” across the corporate infrastructure and U.S. store leadership organization.
How many stores could close in the U.S. was not disclosed. GameStop did not immediately respond to USA TODAY's request for comment Tuesday.
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hawki · Mar 9, 2020

Former President of Nintendo of America appointed to GameStop Board of Directors

"Nintendo of America’s former president and taker of names is joining GameStop’s board of directors. The huge gaming retail company announced today that Reggie Fils-Aimé is joining its board to help turn the company around. Fils-Aimé is best known as his time as president of Nintendo of America, when he was the face of the company in North America..."

https://venturebeat.com/2020/03/09/reggie-fils-aime-gamestop/

guest · Mar 20, 2020

GameStop tells employees it's 'essential' and can stay open during lockdowns
March 20, 2020
https://www.engadget.com/2020/03/20/gamestop-essential/

GameStop insists it can remain open even if its stores' locations are under lockdown due to the coronavirus outbreak. According to Kotaku and Vice, it sent a memo to employees, telling them that its stores don't have to shut down because it believes its business is classified as "essential retail."

n a memo the company sent, it explained that it believes it's an essential business since the products it carries "enable and enhance [its] customers' experience in working from home." The memo even includes instructions on what to do in case law enforcement officers attempt to enforce closure.
It told store managers to hand officers a flyer with a number for GameStop's corporate office.

However, Kotaku says employees are worried, because it's taken "little to no measures" to prevent further outbreak.
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guest · Mar 20, 2020

GameStop closes California stores despite earlier defiance
Turns out a game store isn't very essential during the COVID-19 pandemic
March 20, 2020
https://www.engadget.com/2020/03/20/gamestop-closes-california-stores/

GameStop's insistence on staying open during the COVID-19 pandemic might not have accomplished much in at least one state. Kotaku understands that GameStop is closing its stores in California "until further notice" while it waits for more information from California Governor Gavin Newsom.

We've asked GameStop for comment.
The retailer had maintained that it was an "essential business" as it improved the quality of life for people working from home.
The company has effectively been setting up a confrontation with the law, not to mention employees who may refuse to put their health at risk just to sell consoles and games.

However, it's well-known that GameStop is already in deep financial trouble.
Mandatory closures could exacerbate those problems and leave the store chain with poorer chances of recovery.
Click to expand...

guest · Mar 21, 2020

GameStop Finally Closes Stores To Customers
March 21, 2020
https://kotaku.com/gamestop-finally-closes-stores-to-customers-1842440935

GameStop will close all of its stores to customers tomorrow, switching to a “delivery at the door” service for locations that remain open, company CEO George Sherman said in a letter to employees today that was obtained by Kotaku.

Shoppers will be able to order games online, by using the GameStop app, or with QR codes at stores. They can then pick the games up curbside at stores that remain open through the coronavirus pandemic. Some states, like California and Nevada, have forced the struggling retailer to shut down its locations entirely, despite GameStop’s protests.

The CEO emphasized that any employees who do not feel comfortable going to work at stores doing delivery should tell their supervisors accordingly. “We respect that everyone has personal situations and preferences, so your decision will not impact your position with the company,” Sherman wrote.
Click to expand...

guest · Mar 22, 2020

GameStop restricts customer access to stores, enables curbside pick-up
GameStop Provides US Store Operations and Customer Service Update (March 21, 2020)

GRAPEVINE, Texas, March 21, 2020 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME), today provided an update related to its United States store operations and customer service related to COVID-19.

Effective Sunday March 22, 2020, for all locations not already closed in accordance with state and local orders, GameStop will temporarily stop customer access to storefronts, processing orders on a digital only basis, moving to curbside pick-up at stores and eCommerce delivery only. This will allow the Company to continue to serve customers who have purchased online at GameStop.com and the GameStop app and have requested a product pick-up at their local store.

We believe it is prudent to institute further safety protocols while meeting this increased demand through curbside pick-up. As such, stores that remain in operation will provide only pick-up at the door or delivery to home activities to further protect our employees and customers.”
The Company will continue to offer its products online at GameStop.com and on the GameStop app for customers to have their products shipped directly to their homes.
Click to expand...

guest · Mar 30, 2020

GameStop instructs employees to tape plastic bags around hands while at work
March 30, 2020
https://mspoweruser.com/gamestop-employees-plastic-bags-coronavirus/

The report comes from The Boston Globe, where a manager for GameStop said that he had received the instructions from a district leader.

The ‘delivery at door’ method involves customers either ordering their product online, ordering their product through the GameStop app, or scanning at QR code at certain store locations.
As we previously reported, the product will be “picked up and packed” by the in-store employees, who will then work with the customer to allow them to pick up their order either curbside or at the store’s door.

It apparently turns out that “picked up and packed” actually means that workers have been told to take a plastic bag, tape it around one hand, and open the store’s door enough for them to take the customer’s credit card.
Click to expand...

The Boston Globe says that GameStop did not respond to questions about the payments at the door, the plastic bags, nor the fact that GameStop isn’t considered an essential service in the state of Massachusetts.
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guest · Sep 11, 2020

Console options without disc drives could be GameStop’s final death knell
September 10, 2020
https://arstechnica.com/gaming/2020...-drives-could-be-gamestops-final-death-knell/

The latest quarterly earnings report from GameStop doesn't show much sign of a turnaround for the long-troubled game retailer. Sales were down 26.7 percent year over year for the April through June quarter.
GameStop's already depressed stock is down nearly 8 percent on the news, as of this writing.

But there's some reason to believe the coming generation of consoles could actually make GameStop's long-term prospects worse, thanks to console options that get rid of disc drives entirely.
Click to expand...

Putting on a brave face
In an earnings call, GameStop CEO George Sherman acknowledged that "there has been growth in digitally downloaded games" and said GameStop is "not debating the growth of digital gaming." But he also tried to put a positive spin on the fate of GameStop's physical game sales going into the next generation of consoles.

"First, new consoles have a disc drive," Sherman said. "So for the next seven years, the consoles will play both the physical and digital software that we sell."
That's only partially true, though.
Both the Xbox Series S and the PlayStation 5 Digital Edition actually won't have a disc drive.

Still, lower hardware costs could definitely make discless consoles an attractive option to many potential customers this generation.
Click to expand...

Regardless, every console gamer that gives up a disc drive in the next generation is a consumer that is going to have much less need for a retailer like GameStop going forward.
Starting in November, a significant chunk of the console market won't even be able to consider GameStop's bread-and-butter disc sales.

Sherman tried to put up a brave front against this overwhelming trend, arguing that game downloads aren't all they're cracked up to be.
"With our current capabilities and added same-day delivery, we believe most consumers can get a physical game copy faster than it takes to download," he added.
Click to expand...

The company has already outlined an ambitious plan to transform into "a social and cultural hub of gaming within each GameStop store." But any future GameStop that relies on its current model of primarily selling games on discs doesn't seem like a good long-term bet.
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guest · Sep 16, 2020

GameStop will offer multiple ways to buy next-gen Xbox and PlayStation
Next-gen consoles could be the most accessible ever for buyers
September 15, 2020
https://www.techspot.com/news/86754-gamestop-offer-multiple-payment-options-next-gen-consoles.html

In brief: Microsoft won’t be the only company to offer financing options for next-gen consoles. GameStop in its second quarter financial report confirmed that it’ll also offer expanded payment options when new consoles hit the market later this year.

Internal documents provided to VentureBeat suggest the company is considering multiple payment methods including layaway, traditional installment plans and rent-to-own programs.
The layaway option will let buyers make payments toward the purchase of a new console over time. Once the full amount is paid, they can take the system home.
Click to expand...

The installment plans, reportedly offered through third parties like Klarna and Quadpay, will allow buyers to pay off their purchase in four installments over six weeks with no additional fees.
With the rent-to-own option, customers can take home a console with minimum upfront cost and pay off their purchase over the span of a year (or sooner, should they choose)
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GameStop: GameStop Reports Second Quarter Results And Strong Progress Toward Strategic Objectives

GRAPEVINE, Texas, Sept. 09, 2020 (GLOBE NEWSWIRE) -- GameStop Corp. (NYSE: GME), today reported results for the second quarter ended August 1, 2020 that reflected strong positive cash flow, a strengthened balance sheet and progress toward its strategic objectives despite the negative impact from temporary store closures related to COVID-19 and operating in the last few months of the current generation console cycle.
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guest · Oct 8, 2020

GameStop Surges After Forming Strategic Accord With Microsoft
October 8, 2020
https://www.bloomberg.com/news/arti...after-forming-strategic-accord-with-microsoft

GameStop Corp. jumped as much as 27% after a strategic partnership with Microsoft Corp. gave investors fresh optimism that the video-game retailer can turn around its business.

Under a multiyear agreement, GameStop will use Microsoft’s cloud services to handle business operations, including finance, inventory and e-commerce, according to a statement Thursday. In-store workers also will use Microsoft Surface devices while they’re helping customers. And GameStop will offer Xbox All Access, a monthly service for the Xbox gaming console.

GameStop is expected to get a surge in sales when new video-game consoles arrive in coming weeks, and the Microsoft partnership could help them extend the momentum.
Click to expand...

Longer term, GameStop faces a tough challenge. Video-game companies are relying less on physical media and increasingly delivering their products online, making a brick-and-mortar chain less necessary.
GameStop investor Ryan Cohen, the former head of Chewy.com, has been prodding the company to focus more on e-commerce, rather than its physical chain. But GameStop has a massive retail footprint, with thousands of stores in 10 countries.
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Microsoft / GameStop: GameStop announces major multiyear partnership with Microsoft

GameStop is the world’s largest video game retailer which operates over 5,000 stores across 10 countries.

Today, GameStop announced a major multiyear partnership with Microsoft. As part of this partnership, GameStop will deploy Dynamics 365 as its back-end and in-store solution, GameStop retail store associates will be equipped with new Microsoft Surface devices, Microsoft 365 and Microsoft Teams will become the productivity solution for 30,000 employees and GameStop will start selling Xbox All Access in its stores. Find the details below.

“GameStop has become a popular destination for gamers to find their favorite video games, hardware and accessories, socialize with others in the community, try out new games, and get educated on the latest tips and trends,” said Matt Renner, President, US Enterprise Commercial, Microsoft.
“By harnessing the power of Dynamics 365 and Microsoft 365, GameStop will be able to modernize its technology infrastructure and support store associates and fans in new and exciting ways.
“For many years GameStop has been a strong go-to-market partner for our gaming products, [...]”
Click to expand...

guest · Oct 11, 2020

Why GameStop declined as video games boomed
October 10, 2020
https://www.cnbc.com/2020/10/10/why-gamestop-declined-as-video-games-boomed.html

With more people stuck indoors and craving entertainment thanks to lockdowns across the country, you’d think that video game retailer GameStop would be thriving. GameStop’s core business is selling new and used software and hardware to video game enthusiasts.
But the coronavirus pandemic has decimated the already struggling chain.

Even before the pandemic started, gamers had already begun to shift from buying packaged software at brick-and-mortar stores to downloading games directly to their consoles.
It isn’t all bad news for GameStop. With stores shut down, its second quarter 2020 global online sales increased more than 800% from the year prior.
Click to expand...

The question is with an onslaught of new competitors and a digital world taking shape around it can GameStop survive?
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guest · Nov 4, 2020

GameStop Is Having A TikTok Competition For Its Employees And One Of The Prizes Is 10 Extra Labor Hours
Novembe 3, 2020
https://www.thegamer.com/gamestop-black-friday-hours/

GameStop has announced that it is running a TikTok competition across its stores, and one of the prizes appears to be ten extra labor hours during Black Friday. Cheers, but I reckon I'll leave the dancing to someone else.

The news comes from the GameStop Conference portal, where the company's events team recently published details of the competition. According to the post in question, store managers are being asked to rope their teams into recording a synchronized dance on TikTok. You can watch a demonstration of the dance in the video embedded below, although I'm not really sure why you'd want to.

Anyway, that's not the important bit. "The winner of the challenge will receive an Echo 8, Echo Auto, $100 VISA gift card and 10 additional labor hours to use during Black Friday week," the end of the post reads. "Imagine what you could do with all those prizes."
Click to expand...

The competition seems to have started yesterday and the winner will reportedly be announced on Friday.
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guest · Jan 11, 2021

GameStop signs deal with investor, refreshes board to focus on e-commerce
January 11, 2021
https://www.reuters.com/article/us-...es-board-to-focus-on-e-commerce-idUSKBN29G1EP

GameStop Corp signed an agreement with investor Ryan Cohen’s RC Ventures LLC on Monday, appointing the Chewy.com founder and two other e-commerce veterans to its board as the ailing videogame retailer doubles down on digital sales.

Shares of GameStop, in which RC Ventures holds a 13% stake, were up 8% in premarket trading.
RC Ventures in November urged the world’s largest videogame retailer, hit by growing digital downloads of console games and intense competition, to conduct a strategic review of its business and focus on digital sales.
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Alan Attal and Jim Grube will be the other directors on GameStop’s board, the company said.
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hawki · Jan 25, 2021

So there is an interesting story involving GameStop stock.

This month the stock has risen over 400%, from $17.50 to $88.00. (At one point today the stock was selling for $146.00.)

https://www.marketwatch.com/investing/stock/gme?mod=over_search

Here's the explanation:

"...It has nothing to do with fundamentals. Rather, it’s the mother of all short squeezes. Bearish investors, believing GameStop is the next Blockbuster, got so bearish that they sold every single share—and then some—of the company short.

But a little bit of good news—in this case the arrival of Chewy co-founder Ryan Cohen—provided a spark that sent shares higher. That spark was fanned into flames by investors on Reddit, who continue to push the stock..."

[A"https://www.marketwatch.com/article...nexplicable-run-51611580557?mod=mw_quote_news

Here's the Reddit board that's been fanning the flames and causing the young, speculative investor crowd to buy the stock with their smartphones using the free trading platform, Robinhood.

https://www.reddit.com/r/wallstreetbets/

This story is unlikely to end well for many.

hawki · Jan 26, 2021

hawki said: ↑

So there is an interesting story involving GameStop stock.

This month the stock has risen over 400%, from $17.50 to $88.00. (At one point today the stock was selling for $146.00.)
Click to expand...

The story continues.

In aftermarket trading GameStop stock is selling for $226/share up $147 (145%) on the day.

Here's further insight:

"Why GameStop shares are on a wild, Reddit-driven run..."

https://www.washingtonpost.com/business/2021/01/25/gamestop-stock-short-squeeze/

"Is GameStop stock being manipulated by social-media users or is it free speech?..."

https://www.marketwatch.com/story/i...xperts-weigh-in-11611636278?mod=mw_quote_news

hawki · Jan 27, 2021

"GameStop Stock Frenzy Continues As Share Price Tops $350 In Pre-Market...

The stock’s surge has, in large part, been fueled by an army of Reddit-charged day traders who used the website "WallStreetBets" forum to pump up shares and fight back against the huge levels of short sellers..."

https://www.baystreet.ca/articles/techinsider.aspx?articleid=63787&mod=mw_quote_news

GameStop Corp.

$354.80

+ $206.82
+139.76%

Last Updated: Jan 27, 2021 at 9:29 a.m. EST Delayed quote

https://www.marketwatch.com/investing/stock/gme?mod=mw_quote_recentlyviewed

The stock of GameStop was trading at $17.50 at the beginning of January.

hawki · Jan 27, 2021

"GameStop, AMC surge after Reddit users lead chaotic revolt against big Wall Street funds

Users on online trading communities are claiming victory for wrecking costly Wall Street gambles...

Shares of video game retailer GameStop and movie theater giant AMC Entertainment soared to astronomical levels Wednesday as an apparent swarm of ordinary investors, spurred on by a Reddit message board, took on big Wall Street funds that had bet the companies’ stock prices would fall...

The inexplicable rise in AMC and GameStop’s stock prices has become one of Wall Street’s most-watched dramas, pitting an apparent army of retail investors against seasoned Wall Street traders. Some of the Reddit participants, who had organized in the message board WallStreetBets, claimed they were punishing Wall Street and “democratizing” trading...

For weeks, users posting onWallStreetBets have been rallying support for GameStop, which has been targeted by short sellers as it struggles to adapt its brick-and-mortar busines..."

https://www.washingtonpost.com/business/2021/01/27/gamestop-amc-reddit-short-sellers-wallstreetbets/

hawki · Jan 27, 2021

"Reddit group that drove GameStop shares 1,700% higher and cost Wall Street short-sellers billions goes PRIVATE after messaging platform Discord BANNED their server for 'hate speech' in the wake of SEC and White House 'monitoring'..."

https://www.dailymail.co.uk/news/ar...holders-gotten-3BILLION-richer-two-weeks.html

hawki · Jan 27, 2021

hawki said: ↑

"Reddit group that drove GameStop shares 1,700% higher and cost Wall Street short-sellers billions goes PRIVATE after messaging platform Discord BANNED their server for 'hate speech' in the wake of SEC and White House 'monitoring'..."

https://www.dailymail.co.uk/news/ar...holders-gotten-3BILLION-richer-two-weeks.html
Click to expand...

hawki said: ↑

"Reddit group that drove GameStop shares 1,700% higher and cost Wall Street short-sellers billions goes PRIVATE after messaging platform Discord BANNED their server for 'hate speech' in the wake of SEC and White House 'monitoring'..."

https://www.dailymail.co.uk/news/ar...holders-gotten-3BILLION-richer-two-weeks.html
Click to expand...

"WallStreetBets", the Reddit group that drove GameStop shares has reopened -- no longer private.

https://www.marketwatch.com/article...uts-down-server-51611792059?mod=mw_latestnews

hawki · Jan 28, 2021

Front page today's Wall Street Journal:

https://pbs.twimg.com/media/Es0JuabXMAIFbZA?format=jpg&name=900x900

Current GameStop share price -- NB at beginning if January GameStop stock was selling at $17.50/share:

"GameStop Corp.

$471.50

+$123.99 35.68%
+ 35.68%

Last Updated: Jan 28, 2021 8:05 a.m. EST "

https://www.marketwatch.com/investing/stock/gme?mod=over_search

hawki · Jan 28, 2021

Robinhood, the commission-free, smartphone trading platform, popular with younger retail investors and the Reddit crowd, this morning banned the purchase of GameStop stock.

As a result, the stock fell from it's pre-market high of $480 to a current price of $196.

https://www.marketwatch.com/investing/stock/gme?mod=over_search

stapp · Jan 29, 2021

A society promoting legendary outlaw Robin Hood has seen a huge surge in its social media following from people confusing it with the US stock trading platform Robinhood.
Click to expand...

https://www.bbc.co.uk/news/uk-engla..._custom4=DF49FB40-620F-11EB-84AA-A9800EDC252D

hawki · Jan 29, 2021

hawki said: ↑

Robinhood, the commission-free, smartphone trading platform, popular with younger retail investors and the Reddit crowd, this morning banned the purchase of GameStop stock.

As a result, the stock fell from it's pre-market high of $480 to a current price of $196.

https://www.marketwatch.com/investing/stock/gme?mod=over_search
Click to expand...

"GameStop back on the rise as Robinhood eases trading ban..."

https://www.reuters.com/article/ret...hood-eases-trading-ban-idUSL4N2K432U?rpc=401&

GameStop Corp.
Premarket

$352.00

+ $158.40
+ 81.82%

Last Updated: Jan 29, 2021 8:38 a.m. EST Delayed quote

https://www.marketwatch.com/investing/stock/gme?mod=mw_quote_recentlyviewed

Rasheed187 · Jan 29, 2021

hawki said: ↑

Robinhood, the commission-free, smartphone trading platform, popular with younger retail investors and the Reddit crowd, this morning banned the purchase of GameStop stock.

As a result, the stock fell from it's pre-market high of $480 to a current price of $196.

https://www.marketwatch.com/investing/stock/gme?mod=over_search
Click to expand...

I believe trading should be halted and there should be more rules against stock market manipulation from both retail investors and hedge funds, because this is crazy, it doesn't make any sense. And don't forget, because these hedge funds are now losing billions, they may eventually start to sell other well known stocks, which will cause the market to crash. These so called retail investors are a bunch of idiots if you ask me.

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