GameStop launches classic game stores

The beleaguered retailer, which remains a meme stock favorite, announced plans on Wednesday to launch a series of “retro” stores that will focus on older game systems and their titles.

The retro, address-based stores appear to be retrofitted existing GameStops — or perhaps just a segment of those locations. GameStop has not provided additional information beyond an X post announcing the release.

THE CLASSICS ARE BACK.

New retro GameStops are now coming near you: https://t.co/m42FevuQaY pic.twitter.com/79PloFFiOx

— GameStop (@gamestop) August 27, 2024

Classic game fans will be able to purchase classic games for a variety of older video game consoles including NES, SNES, Game Boy Advance, Game Boy, N64, Nintendo DS, Wii, Wii U, Nintendo GameCube, Xbox, Xbox 360, PS1 , PS2, PS3, PS Vita, Sega Genesis, Sega Saturn and Dreamcast.

While focusing on games for systems that are no longer sold might seem like a curious business move, there is some logic to the announcement. Publishers are increasingly focused on digital distribution, making GameStop less relevant in today’s environment. The company missed analysts’ first-quarter earnings expectations, losing 12 cents per share.

Classic games not only appeal to the most dedicated gamers, which have always been GameStop’s target market, but have also allowed the company to refocus on used game sales, which have always been its main source of revenue. Classic games also often sell for a premium given their nostalgic value and, in many cases, rarity. This could give GameStop a higher profit margin.

A copy, for example, of The Legend of Zelda: Twilight Princess for the Nintendo GameCube was listed at $89.99, while Dragon Ball Z: Budokai Tenkaichi 3 for the PlayStation 2 was priced at $120. The game cost $60 when it came out in 2007.

Shares of GameStop rose slightly in early trading on Wednesday.

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