The company has been losing money for a while now, and their stock prices have been steadily declining. This past year, however, things took a turn for the worse when Reddit users began short selling Gamestop stocks.
This caused the stock prices to plummet, and Gamestop has been struggling to recover ever since. In fact, they’ve already filed for bankruptcy.
The rise of online gaming and how it impacted Gamestop
The rise of online gaming has been a death knell for Gamestop. More and more people are opting to purchase and download their games online, instead of buying physical copies from Gamestop. This shift away from physical copies has been devastating for Gamestop, as it’s their primary source of income. They’ve been trying to adapt by selling digital codes for games, but it hasn’t been enough to make up for the loss in sales.
What’s more, online gaming requires less hardware than traditional gaming, so there’s less need for Gamestop’s services. For many gamers, all they need is a good internet connection and a computer or console to play their games.
what subreddit caused gamestop
The subreddit that caused Gamestop’s stock prices to plummet was /r/wallstreetbets. This is a subreddit where users discuss various investments and stocks, and it’s become increasingly popular in recent years. In January of this year, users on /r/wallstreetbets began short selling Gamestop stocks. This caused the stock prices to drop significantly, and Gamestop has been struggling to recover ever since. In fact, they’ve already filed for bankruptcy.
It’s still unclear what exactly caused the users on /r/wallstreetbets to target Gamestop, but it’s clear that their actions have had a devastating effect on the company.
What could have been done to save Gamestop
It’s difficult to say what could have been done to save Gamestop, as the company has been struggling for years now. However, one thing that may have helped is if they had diversified their income sources.
Right now, Gamestop relies almost entirely on the sale of physical copies of games. However, as the gaming industry shifts more and more towards digital downloads, this is no longer a sustainable business model. If Gamestop had diversified their income sources to include digital game sales, they may have been able to weather the storm.
The future of the video game industry
The future of the video game industry is digital. More and more people are opting to purchase and download their games online, instead of buying physical copies from Gamestop.
This shift away from physical copies has been devastating for Gamestop, as it’s their primary source of income. They’ve been trying to adapt by selling digital codes for games, but it hasn’t been enough to make up for the loss in sales.
