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Here's how GameStop went from dying retail relic to a 'meme stock' that has rattled the American stock market
Here's how GameStop went from dying retail relic to a 'meme stock' that has rattled the American stock market
Katie CanalesJan 31, 2021, 17:51 IST
A customer with a Nintendo DS video game system in Los Angeles, November 21, 2004Bob Riha Jr/WireImage
GameStop may be the largest video-game retailer, but it's a dying one, and it's been that way for years.
The COVID-19 pandemic shot a much-needed jolt of life into GameStop as people sought at-home entertainment.
An online forum sent GameStop's stock price through the roof, shaking up the US financial system in the process.
Two years ago, GameStop was quickly deteriorating, ready to become a mere relic of the video game retail era.
The gaming retailer, the largest in the industry, began to flail within the past decade as game developers turned toward creating digital versions of their games. Customers went from camping outside stores to be the first to snag the new version of "Call of Duty" to downloading or streaming it online from their homes.
Here's how GameStop was merely a dying brand two years ago, found a temporary safety net during the pandemic in 2020, and has evolved into a full-blown "meme stock" that has sent earthquakes through the traditional American financial system.
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GameStop was at one point the go-to place to get your hands on the hottest new video games of the season.
A Seattle customer with the New Super Mario Bros. 2 game in a GameStop store in 2012.
Stephen Brashear/Invision for Nintendo/AP Images
The video game industry at large was evolving to cater to new consumer demands, and gamers began to stream or download games online from their homes.
Katie Canales/Business Insider
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Things were looking bleak for GameStop - until the COVID-19 pandemic emerged in March 2020.
A GameStop store in May 2020.
Jeff Roberson/AP
In September 2020, Ryan Cohen - the cofounder and ex-CEO of online pet supply company Chewy - bought up nearly 12% of GameStop's shares.
Ryan Cohen.
Ryan Cohen
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That large-scale buying sent GameStop's share price to levels that it's been unfamiliar with amid its years-long turmoil.
A New York City GameStop location on January 28, 2020.
John Minchillo/AP