1/ GameStop is one of the most fun businesses to study for both its success and failure.

Relative to other specialty retailers, it dominated up until the financial crisis, but has since done very poorly.

But unlike Tower Records or Blockbuster, it is still in business

2/ Thanks to the tailwind gaming has provided, its revenues have grown long-term but EBITDA and margins have been terrible as the gaming world has digitized over the past 5 years.
3/ As I learned in @joosterizer book One Up, their early physical retail edge rested on counterpositioning: doing things Walmart and others couldn't:

1. Accessibility
2. Deeply trained expert staff
3. Tailored loyalty program
4. Custom inventory management for used game sales
@joosterizer 4/ Accessibility

There are 5,500 GameStop stores, often more than one in the same mall (mostly because of EB acquisition). Can always find one.

They install ramps--not for wheelchairs, but for strollers because parents are the real buyer
@joosterizer 5/ Trained Staff

As @joosterizer told me recently, try to go into a GameStop and stump a staff member. They can help you navigate much better than a generic retail employee. Creates loyalty and trust that wouldn't be possible if they didn't just focus so specifically on games.
@joosterizer 6/ Loyalty Program

Standard reasons for a loyalty program, but it helped them manage inventory with pre-sales and reserves, and they used Game Informer (only remaining gaming magazine really) to keep people interested.
@joosterizer 7/ Used game sales

This is the most interesting. Blockbuster games would be resold 6x, and GameStop made all the money on resales.

Required complicated accounting and inventory systems to manage re-sales. Others couldn't compete.
@joosterizer 8/ I think all of these areas of edge could be studied and applied to other retailers, yet GameStop's survival is in deep question because they missed the move to digital.

So interesting to me that edge can be developed and then so quickly eroded.

Its always Day One
For those asking, check out Chapter 3 of @joosterizer book One Up for more.

Charts were made via an internal tool @OSAMResearch developed by @Jesse_Livermore

More from Game

Now that I have a little more time, I'd like to go into detail as to why this is such horseshit.

-39 Seconds- The implication that the PC release was of the quality standard they intended and that's extremely hard to believe. 1/many


-49 Seconds- Leadership Team is deeply sorry (not at fault), don't blame any specific teams (hold onto this one)

-1m42s- Describes a process of making the game look great on PC and then backsliding to "Old Gen" despite the game being announced before PS4/Xbox hardware was known.

-2m11s- Describes the old gen disk bandwith as "it is what it is" Considering the game got announced before those consoles even shipped, its absurd that the entire game was built so far beyond their possible constraints. Also, those consoles put out stuff like Tsushima late gen.

-2m19s- "-our testing did not show a big part of the issues
you experienced while playing the game" This is probably the worst part. Despite telling you not to blame any specific team, the test / QA team, somehow didn't discover the issues with the game.

You don't need to have worked in Dev or QA to know that the game was flying apart at every level (even on PC). The idea that the bug nightmare that ended up shipping seen for example here https://t.co/bgDkfQMVku went under the radar of a PROFESSIONAL QA TEAM is ridiculous.

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