GameStop has gained significant attention recently due to the actions of the WallStreetBets subreddit and the influx of meme investors looking to challenge hedge funds. While these events have caused GameStop’s stock to fluctuate widely, the company is facing a more critical issue – the actual decline in its business.
Prior to the WallStreetBets frenzy, GameStop was struggling due to outdated pandemic-era practices and a failure to adapt to the growing digital distribution of video games. To address these challenges, the new chairman of GameStop, Ryan Cohen, a prominent Wall Street investor, is planning a substantial transformation of the company.
While specifics of Cohen’s plan remain undisclosed, there are rumors about bringing in senior Amazon employees to replace key executives. Cohen envisions turning GameStop into the “Amazon of games,” although the exact implications of this vision have not been clarified intentionally.
Ryan Cohen delivered his first speech as the board member of GameStop.
In his speech, Cohen mentioned, “We’re aiming to achieve something unprecedented in the retail sector.”
Read the full transcript here.
— GMEdd (@GMEdd) June 9, 2021
“We won’t engage in grandiose promises or reveal our strategies to competitors,” Cohen stated during a shareholder meeting on Wednesday. “While some may expect a detailed plan from us today, that won’t be the case.”
Previously, Cohen criticized GameStop in a letter to the board before assuming the chairmanship, highlighting the internal resistance to change and the reluctance to embrace digital advancement.
“GameStop’s struggles stem from internal resistance and a failure to swiftly adapt to the digital era,” the letter stated. “The company needs to transform into a tech-savvy entity that excites gamers and provides exceptional digital services, rather than solely focusing on physical stores within a struggling online landscape.”
(function() {
var loaded = false;
var loadFB = function() {
if (loaded) return;
loaded = true;
(function (d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s);
js.id = id;
js.src = “//connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.0”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
};
setTimeout(loadFB, 0);
document.body.addEventListener(‘bimberLoadFbSdk’, loadFB);
})();
