GameStop facts for kids
Logo since 1999
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Formerly
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Babbage's (1984–1999) |
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| Public | |
| Traded as |
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| Industry | Retail |
| Predecessors |
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| Founded | 1984 |
| Founders |
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| Headquarters |
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U.S.
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Number of locations
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4,413 (Jan 2023) |
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Area served
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Several countries
Australia
Austria Canada France Germany Italy New Zealand Switzerland United States |
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Key people
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Ryan Cohen (Chairman and CEO) |
| Products |
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| Revenue |  US$5.27 billion (2023) |
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Operating income
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 −US$35 million (2023) |
| US$6.7 million (2023) |
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| Total assets | US$2.71 billion (2023) |
| Total equity | US$1.34 billion (2023) |
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Number of employees
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11,000 full-time 14,000–27,000 part-time (Jan 2023) |
| Parent | NeoStar Retail Group (1994–1996) Babbage's Etc. (1996–1999) Barnes & Noble (1999–2004) |
| Subsidiaries |
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GameStop Corp. is an American company that sells video games, electronics, and gaming stuff. It is based in Grapevine, Texas, and is the biggest video game seller in the world.
As of 2023, GameStop has over 4,400 stores. These stores are in the United States, Canada, Australia, and Europe. They operate under names like GameStop, EB Games, EB Games Australia, Micromania-Zing, ThinkGeek, and Zing Pop Culture. The company started in 1984 in Dallas as Babbage's. It changed its name to GameStop in 1999.
In the late 2010s, GameStop faced challenges. More people started buying video games online instead of in stores. In 2021, many people bought GameStop shares. This caused the company's stock price to go up very quickly. GameStop got a lot of attention in the news because of this. GameStop also owns and publishes Game Informer, a magazine about video games.
Contents
GameStop's Story
Early Years (1984–1994)
GameStop began as a company called Babbage's. It was founded in 1984 in Dallas, Texas. The founders were James McCurry and Gary M. Kusin. The company was named after Charles Babbage, who is known as a computer pioneer.
Babbage's first store opened in Dallas. It quickly started selling video games, especially for the Atari 2600. In 1987, they began selling Nintendo games. By 1991, video games made up two-thirds of Babbage's sales. In 1988, Babbage's became a public company. This means its shares could be bought and sold by the public.
Becoming NeoStar Retail Group (1994–1996)
In 1994, Babbage's joined with Software Etc. Software Etc. sold computer software. Together, they formed a new company called NeoStar Retail Group. Both Babbage's and Software Etc. kept their own names and leaders.
In 1995, the company moved its main office to Grapevine, Texas. In 1996, NeoStar combined its Babbage's and Software Etc. stores into one group. Later that year, NeoStar had money problems. It could not get enough money to buy products for the holiday season. So, the company had to file for bankruptcy. This is a legal process for companies that cannot pay their debts.
In November 1996, Leonard Riggio bought NeoStar's assets for $58.5 million. Riggio was a founder of Software Etc. and also a leader at Barnes & Noble. Many stores were closed after this purchase.
Babbage's Etc. (1996–1999)
After buying NeoStar, Leonard Riggio created a new company called Babbage's Etc. Richard Fontaine became the chief executive. Daniel DeMatteo became the president.
In 1999, Babbage's Etc. started its GameStop brand. They opened 30 GameStop stores. They also launched gamestop.com, a website where people could buy video games online.
Part of Barnes & Noble (1999–2004)
In October 1999, Barnes & Noble Booksellers bought Babbage's Etc. for $215 million. A few months later, in May 2000, Barnes & Noble also bought Funco. Funco owned the video game store FuncoLand. When Barnes & Noble bought Funco, they also got Game Informer, a video game magazine.
Funco was renamed GameStop, Inc. in December 2000. In February 2002, GameStop became a public company again. Barnes & Noble still owned most of GameStop. In October 2004, Barnes & Noble gave its shares of GameStop to its own shareholders. This made GameStop an independent company.
Growing Bigger (2004–2016)
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Buying Other Companies
GameStop bought many other companies to grow:
- In 2005, GameStop bought EB Games for $1.44 billion. This added stores in Australia, Canada, Europe, and New Zealand. GameStop then had over 4,250 stores worldwide.
- In 2007, GameStop bought Rhino Video Games. These were 70 video game stores in the southeastern United States.
- In April 2008, GameStop bought 49 stores from Free Record Shop in Norway.
- In October 2008, GameStop bought Micromania, a French video game seller. This gave GameStop 332 stores in France.
- In 2010, GameStop bought Kongregate, a website for online games. It was later sold in 2017.
- In 2011, GameStop bought Spawn Labs and Impulse. Spawn Labs worked on playing games remotely. Impulse was a platform for selling PC games. GameStop closed both in 2014.
- In 2012, GameStop bought BuyMyTronics, an online place to sell used electronics.
- In 2012, GameStop bought part of Simply Mac, a seller and repairer of Apple products. GameStop bought the rest in 2013. Many Simply Mac stores closed in 2017, and GameStop sold the rest in 2019.
- In 2013, GameStop bought Spring Mobile, a seller of AT&T wireless services.
- In 2015, it bought 163 RadioShack stores.
- In July 2015, GameStop bought Geeknet.
- In 2016, GameStop bought 507 AT&T store chains. This was to sell more than just video games.
New Brands
GameStop started MovieStop in 2004. These stores sold new and used movies. MovieStop was sold in 2012 and closed in 2016.
In 2012, GameStop introduced GameStop Kids. These were temporary stores in malls during the holidays. They sold games rated "Everyone" and merchandise for kids.
In 2014, GameStop's Australian division, EB Games Australia, started ZiNG Pop Culture. This store sells items related to pop culture. ZiNG Pop Culture has grown to many standalone stores. Some stores are now combined with EB Games.
Changes in Leadership
Daniel DeMatteo became GameStop CEO in August 2008. He had been the chief operating officer since 1996. J. Paul Raines became the new chief operating officer. Raines became GameStop CEO in June 2010. Under his leadership, GameStop's online sales grew a lot.
Challenges (2016–2021)
Market Changes
The way people buy games has changed. More people download games online from services like Xbox Live and PlayStation Network. This has caused fewer people to buy physical games from stores like GameStop. This led to a drop in sales for GameStop.
In February 2017, GameStop said it would close over 150 stores. However, they also planned to open new stores for technology and collectibles. GameStop's total sales went down in 2018.
GameStop's investment in Spring Mobile was not successful. They spent a lot of money buying it but got less money when they sold it.
In 2018, GameStop talked about being sold to another company. But in January 2019, they stopped looking for a buyer. This was because they could not find a good deal. After this news, GameStop's stock price dropped a lot.
GameStop had its biggest financial loss in 2018. They lost $673 million, compared to making a profit the year before.
Leadership Changes
J. Paul Raines resigned as CEO in January 2018. Daniel DeMatteo became the temporary CEO. Michael K. Mauler became CEO in February 2018 but resigned in May 2018. Daniel DeMatteo became interim CEO again. Shane Kim then became interim CEO. George Sherman became CEO in March 2019. In March 2020, new people joined GameStop's board of directors. These included Reggie Fils-Aimé, who used to lead Nintendo of America.
Efforts to Improve
American Division Efforts
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All GameStop stores in Puerto Rico closed in March 2016 due to higher taxes.
In July 2019, GameStop started plans to change its stores. They wanted to focus on competitive gaming and retrogaming. They also wanted to let customers try games before buying them.
In August 2019, GameStop let go of over 120 employees. This included about half of the staff at Game Informer. This was part of their "GameStop Reboot initiative" to improve the company.
In August 2019, an investor named Michael Burry suggested GameStop buy back its own shares. He believed the company was in good shape. He also thought that new game consoles would still use game discs. This would help GameStop. GameStop's stock price went up after this news. In December 2019, GameStop bought back many of its shares.
In September 2019, GameStop announced plans to close about 180 to 200 stores that were not doing well. They also planned to close more stores over the next two years.
In October 2020, GameStop announced a deal with Microsoft. This deal would help GameStop use Microsoft's online systems. It was also reported that GameStop would get a share of money from digital game sales for the Xbox Series X and S when those consoles were sold by GameStop.
Australian Division Efforts
GameStop's Australian division has focused on selling more high-profit items. They have also opened more combined EB Games and Zing Pop Culture stores. These stores offer a wider range of gaming and pop culture items.
Selling merchandise like t-shirts and figurines has helped the company stay profitable in Australia. Selling used games has also been a big part of their success. GameStop's Australian division has been the only part of the global GameStop business that made a profit in recent years.
COVID-19 Pandemic
The COVID-19 pandemic also affected GameStop. In December 2021, GameStop reported a bigger loss than expected. Investors were waiting to see how the company would change its business to attract gamers.
In March 2024, GameStop announced that it made a profit of $6.7 million for the 2023 financial year.
See also
In Spanish: GameStop para niños
