Buzz
Originally owned by Barnes & Noble, GameStop became independent in 2004 and has since become a global retail staple. By offering trade-in options and cash for pre-owned games, it has drawn customers away from larger retail chains. Even as digital downloads grow in popularity, GameStop maintains a strong presence with 5800 stores worldwide. The company is revitalizing its stores with features like in-store game demos to stay competitive. Dive into its fascinating history, unique robbery etiquette, and the surprising legal case involving a former executive.
1. GameStop's origins trace back to selling Atari games.
Image Source: Moparx, Flickr // CC BY-SA 2.0
In 1983, Texas-based entrepreneurs James McCurry and Gary Kusin launched a software store called Babbage’s, named after the 19th-century computing pioneer Charles Babbage, in a Dallas mall. Despite the impending downturn in the video game industry, particularly for Atari, Babbage’s diversified its inventory with personal computer software, helping it survive until Nintendo revitalized the market. After merging with Software Etc. in 1994, the company was bought by Barnes & Noble in 1999 and rebranded as GameStop. The name was inspired by BookStop, a chain from the 1980s, as suggested by executive Dan DeMatteo.
2. The pre-owned games you sell to GameStop don’t remain in-store.
Image Credit: Maximo Santana, Flickr // CC BY 2.0
Pre-owned games bought by GameStop aren’t immediately placed on shelves. They are first sent to the company’s refurbishment center near its Grapevine, Texas headquarters. There, the games are cleaned, inspected for functionality, and repackaged before being redistributed. This facility handles over 400,000 games weekly.
3. GameStop staff are allowed to borrow games.
GameStop permits employees to check out games for a maximum of four days. However, there are restrictions: the game cannot be a newly released, high-demand title, and it must not be the sole copy available in the store.
4. Microsoft's 'Red Ring of Death' turned into a profit opportunity for GameStop.
Image Source: Tomasland, Flickr // CC BY 2.0
The launch of Microsoft’s Xbox 360 in 2005 was marred by the infamous 'Red Ring of Death,' a hardware flaw that caused the console to fail months or even years after purchase. This issue, marked by three flashing red lights around the power button, rendered the console unusable. In 2009, GameStop developed a soldering solution to fix the problem. They purchased defective consoles at low prices, repaired them, and resold the refurbished units at a substantial profit.
5. GameStop faced criticism for 'gutting' games.
Usually, manufacturers handle in-box incentives like coupons or freebies without retailer involvement. However, when Square Enix included a promotional flyer for OnLive, a cloud gaming service, in their 2011 PC release Deus Ex: Human Revolution, GameStop was displeased. Reports from CBS News revealed that GameStop employees opened new copies of the game, removed the flyers, and discarded them. This action angered customers, prompting the company to offer a $50 gift card to those who had pre-ordered or bought the game through their rewards program.
6. Some people enjoy rummaging through GameStop's trash.
Source: YouTube
GameStop’s used game business is so successful—12 million titles passed through its refurbishment center in 2012—that stores often lack space for all their inventory. As a result, unsold games, accessories, and guidebooks are frequently discarded. Resourceful gamers have been known to retrieve these items from dumpsters. To combat this, GameStop introduced a 'Field Destroy' policy, requiring employees to damage unsellable items before disposal to prevent dumpster divers from reselling them.
7. A thief once phoned a GameStop store to confirm the availability of the game he intended to steal.
While not as elaborate as a Danny Ocean heist, a 2014 robbery at a Nashville, Tennessee GameStop was notably unusual. The thief, armed with a gun, called the store beforehand, claiming to be in a hurry and requesting an Xbox One and several games be prepared for pickup. Upon arrival, he entered wearing a mask and stole the pre-gathered items. Despite the boldness of the act, there were no reports of his capture.
8. GameStop locations in Philadelphia once mandated fingerprint scans for sellers.
Image Credit: IStock
A CBS affiliate reported that GameStop stores in the Philadelphia area implemented a policy requiring fingerprint scans for customers trading in or selling used games. The prints were cross-checked with a law enforcement database to identify stolen items. The policy, however, faced backlash and was discontinued within a month due to public disapproval.
9. GameStop acquired ThinkGeek.
Novelty ice-cube trays and other quirky items are now easier to find thanks to GameStop. In June, GameStop acquired Geeknet, the parent company of ThinkGeek, known for its unique products like plush bacteria and monkey-themed merchandise. Although the ThinkGeek website closed in 2019, its products are still available in dedicated sections at select GameStop stores.
10. A former GameStop executive orchestrated a multi-million dollar fraud scheme.
Image Source: JJBers, Flickr // CC BY 2.0In 2012, the FBI revealed a complex fraud scheme involving Frank Olivera, a former GameStop vice president. From 2009 to 2011, Olivera submitted fake invoices under the name Cloud Communications, a non-existent vendor. GameStop paid these invoices, and Olivera transferred the funds to his personal account. The scam cost the company nearly $2 million before he was caught and sentenced to four years in prison for mail fraud.
11. GameStop employees were reportedly discouraged from promoting new game sales to customers.
In 2017, Kotaku uncovered a contentious sales strategy at GameStop known as the 'Circle of Life.' This approach centered on customers purchasing new games, trading them in for credit, and using that credit to buy more games, perpetuating the cycle. If a store sold too many new games without sufficient trade-ins, it could negatively impact employee performance metrics, potentially discouraging them from selling new titles. GameStop revised the policy later that year to focus solely on overall store performance.
