In lieu over Gamestop's Peegate recently, I thought it fitting to reflect on the video game company that most gamers love to hate. Whatever you may think of the company, there's one thing you can say for certain, it is as entrenched in the lives of most gamers today as controllers are to video game consoles. Why I would argue that the word prepay wouldn't even be as prevalent as it is today, if not for them. I would also wager that the special edition model of video games today may owe a debt of gratitude for their existence to them as well.

But is the company as a whole good for gamers or as most think, detrimental? Is that question even a worthwhile one to ask? I mean they are a business and like most businesses in our neck of the woods, their sole purpose when all the fog and mirrors get pushed aside is ultimately one thing: profit. Just like any other company out there be it Target, Best Buy and even smaller upstarts like your local independently owned food joint with the great milkshakes. They all offer services and they all want your buck. So again, why the unabashed hate for GameStop? To try to answer that let's take a closer look at the company as a whole first. Let's begin with a little company info first.



GameStop Corp is the world's retailer of video game products and PC entertainment software. The Company sells new and used video game hardware, video game software and accessories, as well as PC entertainment software, and related accessories and other merchandise. The Company also operates electronic commerce websites under the names gamestop.com and ebgames.com and publishes Game Informer, the largest circulation multi-platform video game magazine in the United States, with approximately 1.9 million subscribers. The magazine is sold through subscription and through displays in GameStop stores.

The Company operates electronic commerce web sites that allow its customers to buy video game products and other merchandise on-line. The sites also offer customers information and content about available games, release dates for upcoming games, and access to store information, such as location and product availability. The Company has a number of trademarks and servicemarks, including 'GameStop,' 'Game Informer,' 'EB Games,' 'Electronics Boutique,' 'Babbage's' and 'FuncoLand,' all of which have been registered by the Company with the United States Patent and Trademark Office.




Keep in mind gentlemen that over a decade ago, GameStop was bankrupt, and analysts and pundits in the video game industry at that time, predicted that people would be buying games online rather than in its mall stores. Having nowhere to go but up and sticking to their guns, GameStop instead grew, risen from the ashes of obscurity by investors spearheaded by Leonard Riggio, founder & chairman of Barnes & Noble. Barnes & Noble then sold shares of GameStop to the public in 2002 and spun off the company in its entirely in 2004.

Fast forward to 2005 when GameStop bought one of its major competitors, Electronic Boutique for a cool $1.4 billion. A deal that officially put the combined company ahead of Wal-Mart Stores in terms of video game sales. That my friends is a whole lot of games being sold. The secret of their success was a synergy of associates knowledgeable in the ways of games, game sales from new and especially used games and small stores entrenched in malls and high traffic plazas targeting a gamer demographic. As it stands right now they are ranked 348 on the Fortune 500 list.

Not surprisingly their success has been noticed by others. Take a look around at other retail chains now adapting the used game model, as they are looking in and seeing them reaping vast amounts of profit. Why should they have all that money saturating fun?? Expect to see even more people trying to have a slice of that used game business pie. In an enlightening blog written by our own SilverDragon1979 in which he talks about why you shouldn't buy used games, which whatever your stance on that is, he has eye-popping figures of just how much profit GameStop makes on used games. Somewhere in the neighborhood of 300%. *whistles* That's taking candy from a baby territory there.



So back to the point at hand. They're a profitable company. They get their business swirl on, cool. So what? Well I just wanted to give them their props as a company. They deserve it. But if they want to remain profitable, if they want to continue growing as they are now, they may want to change or enforce a few things. Not major back breaking changes mind you, but opportunities missed or not seen altogether. To be honest, it's not even that much to correct or alter. I have consolidated it to just five things. But I foresee a future where their profits and way of business life may suffer if these few things aren't implemented.

1. Cleanliness.

I know that x amount of square feet of store isn't much considering the overload of product you may have at hand but how about some cleanliness and order to the store. The majority of of the stores that have the most problems are usually spotted before you step into the door. If while you are opening the door to enter, you spot a mess of a bargain bin that looks like a video game bobbing for apples structure with no semblance of order, chances are your experience will go downhill. That's an example of not caring, not following a plan-o-gram, not doing any work around the store during downtime and coincidentally a store with a manager not caring. Not only that but as with all businesses the messier it is, the higher the shrink or theft is in that store as nothing is more appealing to thieves, either in store or out, as an unkempt business of operation.

2. Pricing, Pricing, Pricing.

Imagine if you will visiting Amazon and their pricing being wrong. Chances are that train of imagination may never arrive at its destination because it ridiculously improbable to begin with. Their business online is pricing. Guess what? So is Best Buy, Circuit City, Wal-Mart and yes good ol' GameStop. I've written about this before but if you are too lazy to price something correctly in your store, you must not want my money. Way too many people go to a store with no specific agenda to buy anything. Shocking but true. They are called browsers. But browsers can be tempted and easily converted to buying consumers status with not harassment of help but with just a good bargain. A bargain that their peepers will miss if you don't have that stinking game priced right to begin with. There are more lost sales in incorrect pricing or lack of, then any other excuse in retail.

3. Is this a new game??

You could of fooled me if it is because it's not shrink wrapped. You're pulling the game disc from a drawer full off discs along with the instruction manual. Can someone who works for GameStop write down in the comments below why they have a practice of not leaving their games the way they came... sealed. I honestly want to know. Because the first thing I think is they are handing me a used game. I don't care if the disc is in pristine condition, I want my game sealed. Maybe Necros finally decided to trade a game, I know of his tendency of licking games and whatnot. I might not want to partake of that ritual. But in all seriousness, that practice is bizarre to me.

4. The Harassment of Upselling.

I know the value of an Edge card thank you very much. I also know of your magazine too. That's why I have it. But prepay for a future game? Strategy guide to go along with it? Or the new one on the block, game insurance now? Umm, I have other places to be, I just don't feel like being pestered about everything under the sun you have at offer for me to buy. I just want what I came for and go about my life. If you must offer additional services or suggestions can you make it brief and once something has been finalized, i.e. I don't want it or I do want it, move and wrap up the transaction as I would not like to be bothered and I'm quite sure the next person in line would appreciate some steadfast customer service.

and finally the most important one of all. The one that has gotten you to the successful plane you are in.

5. Hiring the RIGHT People.

Hire people that know about games. There are reasons why most people go to a GameStop versus say Wal-Mart. One is impatience. People hate to wait for a game to hit their local electronic outlet, the other? They hope to find people that know about games in a store game specialty store. I don't know about you but if I'm going to buy a riding lawnmower it would be helpful if the people there knew about them to inform me of them. Same thing applies here. Stop hiring high school drop outs whose main goal in life is procuring their daily intake of marijuana. Or idiots that don't have a clue about anything related to customer service. They can still be edgy dressed and have a mohawk, just know your stuff, be helpful, and above all else ... be courteous.



Are all GameStops horrible?? Hell, no. It's just a known fact you will hear about the bad of a company way more than the good, if the good even gets mentioned. But for me, at least in my area there is a trend of decrease in the things I listed above. When GameStop is running on all cylinders it's awesome. You can find old games at a reasonable price, you get instant gratification on the spot with no waiting for a package to arrive, and nothing takes the place of just diving in looking for buried treasure in person.

Just don't lose what made you successful GameStop and you'll be fine. Your biggest competitor isn't online entities like Amazon or Ebay, even though as time passes their shadows will be looming larger in your horizon... It's someone else altogether...it's yourself.


[ Company information provided by CNN Money & NYTimes Business ]