GameStop says it 'could suffer' unless it maximizes social and mobile
GameStop has not had the easiest time trying to adapt to the changing game industry. Now, a recent financial filing acknowledges that mobile and online gaming may pose a serious threat to its business.
"Browser, mobile, and social gaming is accessed through hardware other than the consoles and traditional handheld video game devices we currently sell," reads a statement in GameStop's latest 10-K filing, according to GI.biz. "If we are unable to respond to this growth in popularity of browser, mobile, and social games and transition our business to take advantage of these new forms of gaming, our financial position and results of operations could suffer.
"The company has been and is currently pursuing various strategies to integrate these new forms of gaming into the company's business model, but we can provide no assurances that these strategies will be successful or profitable."
GameStop's Q4 financial reports from last week revealed a loss of $269.7 million in fiscal year 2012. The company has encountered numerous other problems as the industry continues to stretch away from traditional gaming methods.
For instance, its stock price took a hit over fear of the PlayStation 4 used-games patent, which threatened to block all used games on Sony's next-generation system. Sony later dismissed that concern although rumors are still circulating about the next Xbox. Meanwhile, the Wii U isn't selling well, and neither is the PlayStation Vita.
The brick-and-mortar store could be entering its final years. At the least, it's struggling to cope with the turbulence as the industry transitions into a new era.
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