Nintendo digital games threaten physical stores: Now that Google and Nintendo offer digital games, physical stores could have the same fate as the Blockbuster:

•    GameStop is one of the great video game vendors and could have the same destiny as Blockbuster.
•    Sony, Microsoft and Nintendo already offer their games through their own digital download platforms, which helps users to give up their physical copies.
•    A recent study shows that 66% of players still prefer physical copies rather than digital downloads, but nostalgia can not last long.

Narrator: So you want to buy a game ... Do you download or ask from Amazon? Look, you have a Best Buy nearby. Years ago you probably went to GameStop, but now you have more options. GameStop shares have steadily declined since 2016, and scored a loss of 673 million in 2018. Although 66% of Americans are considered players, one of the largest video game retailers has problems. What happened?

Nintendo digital games threaten physical stores

Let's go back a little. It's 2008, you just entered a GameStop. You can not expect to have "Gears of Wars" in your hands. Your feet sneak on a soft rug and take the new game. This is how most people bought their video games, but they do not. Quick question: Would you buy GameStop? Analysts believed that a purchase could save GameStop, but after a few months, GameStop canceled the search for a private buyer. Is it possible for me to suffer the same fate as the popular blockbuster?

Narrator: Probability is against GameStop. Sony, Microsoft and Nintendo sell their digital games. You can buy them directly from the console without having to get off the couch and if you want a physical copy of a game, you can order it from Amazon. Do you have Prime? He'll be there in two days. Fewer people who buy physical children also mean fewer games used to come back and change them on GameStop. This is bad news because second-hand games accounted for more than 23% of GameStop net sales in 2017. But what about PC games? Well, computer games have become digital in front of consoles. Steam, the largest PC game platform, now has one billion accounts and 90 million active users per month, and if you want to play a game at launch, the best way to place an order in advance is through digital technology. Are you beginning to see the trend? GameStop not only competes with other retailers, such as Best Buy, but competes with everyone, including console makers themselves.

But wait, do you still buy physical games? Well, many people still do it. According to Nielsen, 66% of console players prefer physical children, and in April, Sony announced that the next PlayStation 5 will continue to include the unit. Purchasing physical copies is also easier in rural areas, which may lack a high speed internet connection. Therefore, GameStop may not have to press the reset button yet, but things will become more difficult.

Ten years ago, GameStop's revenue grew rapidly, but sales declined, and in 2018 GameStop reported the biggest loss since publishing, despite the fact that monthly average spending on video games increased overall. GameStop also tried other revenue sources, such as the acquisition of ThinkGeek by the pop culture distributor and the launch of its GameTrust video game division, but these efforts did not significantly reduce. Collections, for example, accounted for only 6.9% of GameStop sales in 2017.

GameStop will continue to exist in the near future. After all, there are still more than 7.00 stores and GameStop also has nostalgia on its part. Buying a physical copy of a game or receiving a gift is interesting for many players, but GameStop can not rely on nostalgia forever. The games will be digital, as Google Stadia points out, we could live in a future where the physical copies of the games will work out and dust up like the old DVDs. This could be the end of the GameStop game.