Trends change, and business models must be constantly updated to not be forgotten. Otherwise, even if a franchise is huge and very successful in its time, it does not ensure that it will continue to be so forever.
We are in the digital age; the consumer often prefers to obtain the products they want online from the comfort of their home. Consumer trends, especially in the technology industry, have leaned towards getting everything from home; that's why projects like Metaverse represent where the technology tendencies go.
Unfortunately, some companies remain with business models that don't work as well today as they used to and have been further affected by the pandemic. In this case, GameStop is an example of this.
GameStop follows the comfort path of resisting innovation, and it hasn't been working for them as they continue to lose big money.
GAMESTOP KEEPS RECORDING LOSSES OF MONEY
According to data from its recent financial report (via CNBC), GameStop's chain of video game stores and related products recorded losses of $157 million. This figure has drawn significant attention since last quarter, which recorded a loss of $66 million. In the same way, console sales fell, reaching $673 million, a figure below what was achieved in the previous quarter.
IT SEEMS THAT IT IS NOT THE END YET, IRONICALLY THE NFT ARE THE LIFESAVER
Something we have not expected is how NFTs are working as the chain lifeline. Since operations started, they have been getting good results and seem to integrate well with collectibles sales, despite the tokens price collapse.
GameStop is currently going through many adversities; it will be a matter of seeing what decisions the company will make to save itself from the crisis. But, they sometimes don’t make rights decisions; for example, Reggie Fils-Aimé, former president of Nintendo of America and former member of the Board of the chain, had clear proposals to lift GameStop and make power with its strategies, but the chain rejected it.
It is seen that they were not on good terms since Reggie stated that GameStop managers do not know the business or understand the players. If this comes from Nintendo’s former president, the future of this chain does not look so promising.
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