GameStop has gained significant attention recently due to the chaotic activities on the WallStreetBets subreddit and the influx of retail investors looking to challenge hedge funds. While these events have caused GameStop’s stock price to fluctuate wildly, the company is facing a separate, more substantial challenge: the actual decline of its core business.
Prior to the WallStreetBets frenzy, GameStop was already struggling due to outdated business strategies during the pandemic and a failure to adapt to the digital shift in the gaming industry. To combat the impending obsolescence, GameStop’s new chairman, prominent Wall Street figure Ryan Cohen, has proposed a comprehensive transformation of the company.
The specifics of Cohen’s strategy remain confidential, but there are rumors of replacing current executives with former Amazon executives. Cohen envisions reshaping GameStop into the “Amazon of games,” although the exact details of this transformation remain vague intentionally.
Ryan Cohen made his inaugural address as GameStop’s board member.
Cohen mentioned, “We’re striving to achieve something unprecedented in the retail sector.”
Read the full speech transcript below.https://t.co/vO3nXlwYNI
— GMEdd (@GMEdd) June 9, 2021
During a shareholder meeting on Wednesday, Cohen emphasized a more secretive and cautious approach, stating, “We won’t indulge in grand promises or divulge our entire strategy prematurely.” Despite the anticipation for a detailed plan, Cohen reiterated that such transparency would not be immediate.
Previously, Cohen had penned a letter to GameStop’s board before assuming the chairmanship, highlighting the internal challenges besetting the company.
“GameStop’s struggles arise from internal resistance to change and a reluctance to embrace the digital age swiftly,” the letter expressed. “GameStop must transition into a tech-focused entity that excites gamers and offers exceptional digital services rather than persisting as a traditional retailer that emphasizes physical stores and fumbles in the online realm.”
