GameStop has been a reliable shop for all kinds of gaming-related products. With several physical stores in major locations around the globe, this retailer appears to be a portrait of commercial success. However, behind the scenes, there appears to be more happening that would cause concern for its patrons. Over the years, there have been rumours of management imposing strict rules and targets that might border close to abuse. These days there is a notable decrease in consumers who purchase physical copies and opt to go digital instead. As such, this has a noticeable effect on the company.

Conducting an in-depth interview with former staff as well as those currently employed by the video game retailers, Polygon was able to get a grasp of the current situation the business is in. What is clear, based on the details supplied by the sources connected to the company, is that GameStop is losing customers. With over 5,600 stores worldwide and an estimated 4,000 in Canada and the US combined, it practically is the most recognizable outlet when it comes to video games.

The way market analysts see it, GameStop has failed to adapt to the changing retail landscape. Instead of physical stores, most big businesses have skipped it and went directly with distributors that can just ship out the products directly from the manufacturer's warehouse or storage depot. Given the problem it is facing, the company is targeting "underperforming stores" and threatening closure if the sales numbers do no improve.

Meanwhile, GameStop executive George Sherman urges its shareholders not to panic. He noted that the upcoming release of the Sony PS5 and Microsoft Xbox Series X should revitalise sales of software and hardware. Digital sales are hurting the retailer, which reportedly relies on trade-ins to turn a big profit from customers. Therefore, to make up for the losses, store managers are allegedly pushing their employees to go for tech trades instead.

GameStop has confirmed a recent data breach may have compromised customers' personal information and payment card data. Reuters/Mike Blake

Given that most consumers go to GameStop to buy video games and other items related to gaming, being bombarded by a sales pitch will discourage them to come back. It is too early to tell if there is no hope for the business. Nevertheless, if the company does not come up with something soon, it will lose out to its rivals.