stacks of Funko Pops, GameStop has not had the easiest of times adjusting to the rise of digital games and consoles centered around them. There have been declines in sales stretching all the way back to the Xbox 360 era, and almost as many attempts by the company to pivot to a model that will keep GameStop afloat and relevant in a constantly shifting industry.
As hinted before, GameStop has shifted from a one-stop-shop for video games to an outlet of all manner of geek paraphernalia. The company invested hard in the toys to life craze, stocking the shelves with amiibo, Skylanders, and Totaku figurines. GameStop stores in 2020 also generally have a wall dedicated to Funko Pops, and some will sell everything from geek shirts to tabletop games. GameStop also attempted to pivot to game publishing a few years ago, helping to bring games like Has-Been Heroes and Insomniac's Song of the Deep to retail and digital shelves under the now-defunct GameTrust label.
GameStop's latest stab at bying its former cash cow may be its simplest. The company confirmed to financial company DOMO Capital that it has inked a deal with Microsoft that will net GameStop profits from any digital content purchased on Xbox Series X|S consoles purchased at its stores. This will include games purchased on the Xbox Game Store on the console as well as DLC. It could even mean sales on things like microtransactions, although that's not stated clearly. Even without the latter, it could mean a huge shift in the way GameStop operates going forward, especially if there is not a similar deal in place with PlayStation and Nintendo.
Assuming Microsoft is the only one cutting in the retailer, GameStop stores will essentially become free marketing for the new Xbox. After all, why would GameStop focus on a console that it won't get ongoing digital profits from? For a certain level of consumer, GameStop is still the place to purchase video games and consoles. Now, those consumers will be headed to stores that will likely have more Xbox consoles in stock and talking to clerks who will push the Xbox as the console to get for the next generation. It's a win/win for everyone involved.
Although not as dramatic as Microsoft purchasing Fallout earlier this year, a deal with GameStop to share profits of the Xbox Series X is another way that the publisher is utilizing its immense capital to get ahead. Losing a fraction of digital sales is not a big deal to Microsoft, especially considering that its true goal is to get gamers on Game and not purchasing them directly. Neither Sony nor Nintendo has this type of subscription service to offset the loss of a hypothetical deal with GameStop or another retailer, so it will be a hard move to counter if it proves to be beneficial. For now, if talk about preorders shifts to extolling the virtues of subscription services at the local GameStop, there's a good reason.
