Gamestop is currently on the upswing: After waiving credit of around 250 million US dollars and announcing the retro stores, initially in the United States, the share price has made a significant jump. Now the retail chain is looking to achieve sustainable effects on sales. Of all things, nostalgia could be the way to achieve this.
Gamestop has its flaws: There have been minor and major scandals, trouble over opened game boxes that were then sold as new goods - and the pricing is not always understandable, especially in view of the increasing digitization of game purchases. This is precisely the trend that Gamestop now wants to break with the retro stores. And it could actually succeed.
The good business of retro games
A major problem for game retailers is the increasing shift in sales to digital channels: game subscriptions allow fans to choose from extensive libraries for PC, Xbox, Playstation and Nintendo Switch There are regularly countless offers in the respective online stores. And anyway: browsing the latest video games takes place at home in front of the screen and the controller. The prices are often - but not always - better, there are no delivery problems and the way of shopping is extremely convenient. Retailers, on the other hand, have a hard time getting anywhere with their store concepts.
Gamestop recently pointed out a major weakness of digital sales in many social media posts: you only own the games until the platform operator decides to shut them down. Then it could become difficult to play. With the retro idea, Gamestop could kill two birds with one stone: it would bring the advantages of physical games back into focus - because that is exactly what classic games are all about. Anyone who played on the SNES, NES, Gameboy, Gamegear, Sega Megadrive or one of the first Playstation consoles in their childhood or youth will remember: nothing worked without a data storage device, but on the other hand, you didn't need a constant internet connection to be able to play. This nostalgic feeling of enjoying games is slowly and steadily returning to people's living rooms.
One in three gamers in Germany is interested in retro games. This was the result of a 2022 survey conducted by "YouGov" on behalf of the German "Game" association. There were also figures from which one can conclude how deeply rooted nostalgic gaming is in the scene: around seven percent of those surveyed said they would buy original consoles in order to be able to play classic games; six percent said they had bought a new edition of a classic console. There have been a few of these in recent years - and they have been enormously popular. And digital offers that allow access to old games are also popular. Overall, the retro sector is an ongoing trend. In addition, retro can be enjoyed individually - like back then on old tube TVs, provided you want to overcome some technical hurdles, or on modern devices on which old games can be experienced in a new look. Nostalgia and modernity go well together, especially in video games.
A quick check on the auction platform eBay shows how widespread offers in the retro segment are: If you search for "retro" in the video game sector, you will get a page-long list of items, including genuine vintage goods, but also modern descendants of old ideas. All those who did not experience the beginnings of the console and handheld boom can therefore catch up. Consoles and games that were worth a few euros in the 1990s are now sold for many times that amount. For retailers like Gamestop, this could be a real revenue generator with a specialized concept. Well-maintained, checked consoles from professional dealers have value - and the offers could attract people to the shops. In fact, the retro items would provide plenty of incentive to browse again. Pure merchandise items - from Funko figures to cuddly toys - ultimately attract only a few fans to brick-and-mortar stores. With nostalgia and a real offer, this could change exactly that. Retro is made to be touched.
If Gamestop then manages to weld together a retro community of mere customers, the retailer would have achieved a real coup. "CeX" in Great Britain shows how this can work. For Gamestop, it is now not just about selling retro games, but establishing a culture around the topic. Fans would certainly thank the company for it. It would certainly not be a revolution: there are many retro communities. However, Gamestop now also has the financial means to make the topic bigger than it is today. Especially in the United States, fans have to go to some trouble to shop for retro video games "like in a store". The route usually leads via auction platforms - and you have to contend with prices that are sometimes far too high.
Gamestop could now establish a niche that will expand. The chain will then also offer the well-known offers for accessories, new and used consoles and new games, as well as the "merch" that has been used so far as a filler. Once people are back in the shops, they will buy. With competitive prices for retro games and old consoles, the company could secure a place for itself in the industry.
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