GameStop currently sells new and used video games from 6,400 stores. Nearly nearly half of its revenues come from the sale of used video games. But the future of video games appears to mirror that of movies, books and music, all of which have seen digital downloads rapidly erode destroy their business model.
To make headway in digital world, GameStop making its own gaming tablet and is experimenting with tablet trade-in programs at a small number of its retail stores. They have to figure out a way to replace nearly half of its revenues that comes from the resale of used games
Off the shelf console games are still a large market, but they are experiencing intense competition. Popular online services like Valve’s Steam deliver on-the-shelf games as computer downloads OnLive makes XBox 360 and PlayStation 3 games playable on the iPad.Apple Insider