GameStop has been on a downward spiral for a while, with stores closing worldwide and so many more issues, everyone felt it was only a matter of time before the game store became defunct. Well after today’s news, Microsoft might not have kept GameStop from going defunct but it looks as though they probably delayed it.
GameStop announced earlier today that they’ve entered a multi-year partnership with Microsoft. This partnership states that GameStop will begin to use “Microsoft cloud solutions and hardware products to deliver rich new digital experiences to customers”.
GameStop employees will cater to customers’ preferences using their purchase history, pricing, subscriptions and so much more. GameStop Associates will be provided with Microsoft devices to open new opportunities. All of this is said to be the key to transforming the in-store experience of GameStop.
GameStop CEO, George Sherman and Head of Xbox, Phil Spencer both released statements on the announcement.
GameStop CEO, George ShermanThis is an exciting day at GameStop as we announce the advancement of an important partnership that capitalizes on the power of our operating platform and significant market share in gaming to accelerate our digital transformation; drive incremental revenue streams; and over time, further monetize the digital world of gaming. Since joining the Company last April, we have been on a mission to evolve our strategy to take advantage of our undisputed leadership position in gaming. Clearly, GameStop is a top destination for an entire spectrum of gaming products, and we are excited about the opportunity to leverage our capabilities in support of the launch of the next generation of gaming consoles and expand our reach and connection to the worldwide gamer community through this partnership.
Head of Xbox, Phil SpencerFor many years GameStop has been a strong go-to-market partner for our gaming products, and we are excited about continuing and evolving that relationship for the launch of the Xbox Series X|S. GameStop’s extensive store base, focus on digital transformation in an omni-channel environment and expert gamer associates remain an important part of our gaming ecosystem, and we’re pleased to elevate our partnership.
The news has already been beneficial for GameStop as their stock as risen substantially after this announcement.
The lasting effect this will have on GameStop won’t be known until this process begins, so only time will tell for this deal.