Game Stop

GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer. The company is headquartered in Grapevine, Texas (a suburb of Dallas), and is the largest video game retailer worldwide. As of January 30, 2021, the company operated 4,816 stores including 3,192 in the United States, 253 in Canada, 417 in Australia and New Zealand and 954 in Europe under the GameStop, EB Games, EB Games Australia, Micromania-Zing, ThinkGeek and Zing Pop Culture brands. The company was founded in Dallas in 1984 as Babbage’s, and took on its current name in 1999.

The company’s performance declined during the mid-late 2010s due to the shift of video game sales to online shopping and downloads and failed investments by GameStop in smartphone retail.  The company received significant media attention during January and February 2021 due to the volatility of its stock price and the GameStop short squeeze. The company is now ranked 521st on the Fortune 500. In addition to retail stores, GameStop owns and publishes Game Informer, a video game magazine and in Australia runs Zing Marketplace an e-commerce retro gaming and pop culture marketplace that facilitates consumer-to-consumer sales.

GameStop acquired EB Games (formerly Electronics Boutique) in 2005 for $1.44 billion. The acquisition expanded GameStop’s operations into Europe, Canada, Australia, and New Zealand.  Two years later, in 2007, GameStop acquired Rhino Video Games from Blockbuster LLC for an undisclosed amount. Rhino Video Games operated 70 video game stores throughout the Southeastern United States.

MovieStop

GameStop founded MovieStop in 2004 as a standalone store that focused on new and used movies. More than 42 locations were opened, which typically adjoined or were adjacent to GameStop locations. GameStop spun off MovieStop to private owners in 2012. In November 2014, Draw Another Circle LLC, a company controlled by merchandising executive Joel Weinshanker that also owns Hastings Entertainment, purchased MovieStop. The chain shuttered in 2016.

In April 2008, GameStop acquired Free Record Shop’s 49 Norwegian stores. Daniel DeMatteo replaced Richard Fontaine as GameStop CEO in August 2008. DeMatteo had served as company COO since 1996. Fontaine, who had been GameStop chairman and CEO since 1996, remained the company’s chairman. J. Paul Raines, formerly executive vice president of Home Depot, became company COO in September. In October 2008, GameStop acquired Micromania, a French video-game retailer, for $700 million. GameStop, which had previously owned no stores in France, now had 332 French video-game stores. In November 2009, it acquired a majority stake in Jolt Online Gaming, an Irish browser game studio. Jolt closed in 2012.

J. Paul Raines became GameStop CEO in June 2010. He replaced Daniel DeMatteo who was named executive chairman of the company. Under his leadership, in 2012, GameStop’s digital revenue grew from $190 million in 2011 to more than $600 million in 2012.

In 2010, GameStop acquired Kongregate, a San Francisco-based website for browser-based games. In 2017, it was sold for $55 million.

Spawn Labs

In 2011, GameStop acquired Spawn Labs and Impulse in separate transactions. Spawn Labs was a developer of technology that allowed users to play video games that were run remotely on machines in data centers rather than their personal computer or console. Impulse was a digital distribution and multiplayer video game platform acquired from Stardock, and renamed GameStop PC Downloads. Under the ownership of GameStop, the service was redesigned and sold games that use other platforms such as Steam while also selling games that use its own proprietary DRM solution, Impulse:Reactor. GameStop shut down both PC Downloads and Spawn Labs in 2014.

In 2012, GameStop acquired BuyMyTronics, a Denver-based online market place for consumer electronics.

In October 2012 at Grapevine Mills in Dallas, GameStop introduced GameStop Kids, a pop-up retail concept. The brand, which had 80 locations in shopping malls during the Christmas and holiday season, focused on children’s products, and carried only games rated “Everyone” by the ESRB, along with merchandise of popular franchises aimed towards the demographic.

In October 2012, GameStop acquired a 49.9% ownership interest in Simply Mac, a Salt Lake City-based Apple authorized reseller and repairer founded in 2006. GameStop acquired the remaining 50.1% of ownership in November 2013. GameStop tried to target areas for potential new Simply Mac locations in smaller markets that did not have an existing Apple Store within a reasonable driving distance. In January 2017, GameStop closed many Simply Mac locations. The chain had as many as 70 locations at the time of the announcement. In 2019, GameStop divested Simply Mac; at that time it had 43 stores.

Spring Mobile

In November 2013, GameStop acquired Spring Mobile, a Salt Lake City-based retailer of AT&T-branded wireless services. It acquired 163 RadioShack locations in February 2015. In July 2015, it acquired Geeknet. All GameStop stores in Puerto Rico were shut at the end of March 2016, citing increased rates of government taxes. On August 3, 2016, GameStop acquired 507 AT&T store chains in plans to diversify into new businesses and less dependent on the video game market