Gamestop invests in mobile games
Mobile games may be having a negative impact on traditional retail stores, but that does not mean that the trend is not something to pay close attention to. Gamestop, one of the leading game retailers in the world, has experienced turbulence in the advent of mobile games. The company is expected to close more than 500 stores in the U.S. in the coming years, but that does not mean that the gaming giant in out for the count. Instead of looking for a way to beat mobile games, Gamestop has decided to invest more into the support of such games.
Kongregate platform gearing to throw more support at mobile games developers
Gamestop does not seem to harbor any ill will against mobile games, suggesting that their rise to fame is just another way the game industry is evolving. The company has a full-fledged mobile gaming platform called Kongregate, which allows consumers to play free games online. The platform has proven successful for Gamestop and has helped many games from independent developers reach a large audience. Gamestop has announced a new initiative that is designed to help fund the development of mobile games throughout the industry.
Gamestop establishes $10 million development fund
Through Kongregate, Gamestop has set up a $10 million game development fund that is meant to help independent game developers create free-to-play games for the mobile space. The fund is tied to the Kongregate Mobile Developers program, which offers assistance for ambitious developers who have innovative ideas for mobile games. The program offers cash advance to cover some development aspects, monetization consulting, and promotion through the Kongregate platform.
Mobile games continue to attract serious attention
Mobile games have become a market that cannot be ignored. Developers focusing specifically on the mobile space have managed to find great success in the past and platforms like Kongregate are examples of this success. Gamestop expects to begin introducing new mobile games that are supported through its new fund program to the Kongregate platform in the near future.
Mobile games have found success, perhaps at the expense of retailers
There can be no denying the utter success that mobile games have seen in recent years. The game industry has begun to shift to be more accommodating of mobile consumers, while many developers have made a name for themselves through an exclusive focus on mobile games. Even developers that have traditionally clung to console games have begun entering into the mobile space. While mobile games have solidified the success for many in the game industry, it may take a disastrous toll on the retail sector.
Analysis suggests that game retailers may face uncertain future
Games are not the only things that are changing in the game industry; the way people get their games is evolving as well. In the past, consumers would have to visit physical stores to pick up games that they had been looking forward to. With the advent of mobile technology, and an increasing focus on Internet business, these stores are beginning to see less traffic. With mobile games pushing to dominate the game industry, these stores may actually see closure, according to 24/7 Wall St., a market analysis and news group.
Gamestop experiences turbulence in game market
Gamestop, a U.S.-based game retailer, may fall victim to the success of mobile games and the changing game industry landscape. For several years, Gamestop has sold games to avid consumers and boasts of more than 4,400 stores throughout the U.S. The company has done very well in solidifying its position in the game industry through its various partnerships with game developers. Despite these partnerships, however, the retailer has been seeing less in-store traffic, though its Internet traffic has increased significantly over the past several years.
Retailer expected to close 500 stores in the future
In November of 2012, Gamestop announced that it would be closing 200 of its stores in 2013. Mobile games were cited as part of the reason behind the closing of these stores. The retailer is projected to close an additional 500 stores in the coming years due to the impact of mobile games and other elements within the game industry. The company’s gross profit for the third quarter of 2012 show that its three core product segments have been hit hard. These segments are new hardware, new software, and used products.
