Why GameStop declined as video games boomed

What happened to GameStop?
What happened to GameStop?

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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.  

Apple and Amazon have shaken up the status quo too, attracting consumers with new streaming services that don't require physical consoles, making it easier than ever to game. 

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.

And the company is eagerly awaiting the launch of the next generation of consoles from Microsoft and Sony — the Xbox Series X and the PlayStation 5 — expected to arrive in November 2020. 

The question is with an onslaught of new competitors and a digital world taking shape around it can GameStop survive? Watch the video to find out more. 

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