Gamestop was the number one destination for gamers for over a decade, but things started to decline once the internet took hold of the industry. Much like music and film, the gaming industry was changed by the arrival of the internet. Consoles of this generation can use the internet to simply download video games, which makes purchasing physical copies almost obsolete. Of course, there are still those gamers who enjoy their hard copies, but retailers took an enormous hit once games became downloadable.
According to Reuters, GameStop Corp is holding talks with private equity firms about a potential buyout. The site also reports that Gamestop's stock has declined more than 32 percent over the last year, bringing its market value to $1.42 billion, down from $9.4 billion a decade ago. Sycamore Partners is one of the private equity firms that has declared an interest in purchasing the retailer. The one thing that has been helping Gamestop survive longer than other video game retailers is their trade-in option. That method is being threatened now though, due to Sony, Microsoft, and Nintendo offering online marketplaces to purchase throwback games, or backwards compatibility. It looks like the tables have turned on Gamestop, which may not receive a trade-in value that it feels appropriate.
