The Beginning of the End for Video Game Retailers Like GameStop?

The Beginning of the End for Video Game Retailers Like GameStop?:

As more businesses move to the internet-based model, what do you see happening to the traditional store?  In the U.S., we saw the demolition of most Blockbuster movie rental stores, replaced instead by the simple and immensely efficient Netflix.  More and more stores are being replaced by their online counterparts.  Where does that leave even the most popular and profitable of store chains?  Well, they get left behind in the dust of keyboard air blowers.
I admit, I didn’t even go out to the store for Mother’s Day this year.  What’s the point?  My mom loves books, but she got a shiny new Kindle for Christmas.  Why spend a good hour at the bookstore when I could be doing something productive like, I dunno, gaming?
So I copped out and sent a gift card directly to her inbox.  Man, that was easy – a one minute transaction (didn’t even have to deal with wrapping paper), and my mom loved it.  She even got more book for her buck, since e-books are even cheaper than paperbacks.  (As a disclaimer, I’ll always be a paperback gal, as evident by the massive library of books lining my walls, though I realize there is a multitude of people out there who prefer the modern e-book.)

Anyway, back to video games…GameStop has been around for a good 28 years, overtaking competitors (wiping them out actually), but it seems even this retailer giant is no match for the internet.  As worldwide game sales increase, GameStop’s sales do worse than decrease – they plummet.  In fact, most of Diablo III’s presales didn’t occur in-store; they took place over the internet.  How’s that for a slap in the face to the biggest game retailer in the world?!
An employee at M2 Research states:

Retail outlets are seeing sales downturns along with some publishers as business models and distribution methods change in the industry.  Fewer units of packaged games are selling in brick and mortar outlets, and this has hurt retailers such as Toys R Us that have seen strong performance from the category in the past.

In-store sales just aren’t cutting it for companies across all sectors, and game stores have it really rough, since they have not only Xbox Live and PlayStation Network to compete with but also Steam, direct publisher sales (such as Blizzard)…even Amazon.  PC gamers in particular are more likely to make purchases online, according to a GameStop employee.  (After all, why would they want to leave their comfy ergonomic chairs and leather couches just to venture into the great outdoors, seeking a game retailer for a computer game or game time when they can do it all from their game caves, snacks and drinks included?  Now that’s just crazy talk.)

However, M2 Research believes it is likely that larger retailers are well off, since they offer many other products and can simply reduce floor space for games.  (This just further proves that diversification is key!  When one industry – or a sector of an industry – plummets, it pays to have backup products, a built in lifeline.)