Lately I’ve noticed EB Games in Canada are converting to Gamestop. For background information, Gamestop is EB Games parent company, with over $8 billion in revenue. On top of EB Games coverting its stores to Gamestop branding, all new stores are using the Gamestop brand. Is EB Games dead?
No. Gamestop seems to be riding on the model Best Buy used with Futureshop in Canada. Canada’s market isn’t incredibly saturated, so there is definitely room for more competitors in electronics, mobile and gaming. Best Buy realized that Futureshop was operating solo as a major general electronic store in Canada. So instead of re-branding each Futureshop to Best Buy when Best buy bought them out, they let Futureshop keeps its branding.
Why? Best Buy figured that if they owned the competition, they could watch the revenue roll in, keep customers happy and most importantly block out new electronic entrants into the market. To further their strategy, Best Buy made sure Futureshop and Best Buy were 2 different experences.
Gamestop seems to be running on the same model Best Buy used in Canada. By branding some EB Games as Gamestop and opening new stores as Gamestop, the parent company ensures entrants are blocked out from the market, while giving consumers a real or arguably perceived choice to video game purchases and game trade-in’s.
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