GameStop has been traveling down a rocky road for the last couple of years. The once-thriving video game retailer is struggling to keep its doors open, and it doesn't look like things will get better for them anytime soon. The recent COVID-19 outbreak hurt GameStop tremendously, but the company's response to the epidemic may have damaged it even more than the virus.
The COVID-19 virus quickly swept through the country, causing all non-essential businesses to shut down. Instead of closing all the GameStop locations temporarily, the company decided to stay open despite pressure from the government. If authorities came by to tell them to close the store down, GameStop managers were instructed to give them a note stating why they were an essential business. The note reads, "Due to the products we carry that enable and enhance our customers' experience in working from home, we believe GameStop is classified as essential retail and therefore is able to remain open during this time."
GameStop employees were told to continue accepting trade-ins as if the pandemic wasn't in full effect. The company did put some social distancing and sanitary practices in place, but it was the bare minimum. GameStop continued letting customers into its stores up until March 22. They now have a pickup system in place where customers can order their products online and pick them up from the store, but the system remains imperfect. Additional reports have recently come out that GameStop has instructed its employees to wrap their hands in plastic bags if they do not have the proper sanitary equipment.
The company has been struggling to stay afloat ever since the digital download craze. The convenience of buying a video game without leaving the couch has made many game retailers obsolete, especially in these trying times. Physical purchases of games are often coming with download codes for games anyways. Most gamers don't see the point of going to GameStop to buy a game if they only receive a download code.
Many GameStop customers also complain about how the company pushes preorders and rewards programs. Some people even describe it as borderline harassment and avoid shopping at a GameStop specifically for that reason. GameStop has continued to promote these programs during the COVID-19 outbreak. This made customers stay in the store longer, further risking their exposure to the virus. GameStop's lack of concern during this pandemic, combined with constant shady business practices, makes it no wonder why the company is struggling.
GameStop's response (or lack thereof) to the COViD-19 outbreak may cripple the company to the point of no return. The stores have already seen sales drop, and further boycotts may be following after these practices have gone public. GameStop shut down over 300 stores in 2019 and has announced they will be closing an additional 300 in 2020. The company's stock continues to fall as well, putting it in even more hot water. It seems that GameStop is in desperation mode and is trying to do whatever it can to save itself, even if it rubs people the wrong way.
Still, it's sad to see GameStop take such a fall. Many gamers have fond memories of GameStop and when the store was in its heyday. But the rise of digital downloads, questionable business practices and poor treatment of employees has hurt the company tremendously. GameStop's response to the COVID-19 outbreak might be what sinks the once great game retailer's ship.