As we enter the strongest sales time of the retail year (the second half of the fourth quarter), most companies are simply focusing on sales, and strategies that will get them through the holiday season.
GameStop has just announced that it is going to be selling digital video game downloadable content through their stores after the first of the year. As a business advisor, and writer, I realize that there are valuable lessons to be learned here by many companies.
Let's start out by getting a little background about this fourth quarter decision by GameStop.
Everyday, we are seeing how the video game market is shifting more towards downloadable content. Nothing can bring this fact home more than the success of online stores run by Microsoft (for the X-Box 360), Sony (PS3, PSP, and PSP Go), and Nintendo (Wii, DS, and DSi). The introduction of the PSP Go is another example. GameStop realizes that this is a prime time to change the future strategy of the company.
GameStop customers will be able to purchase add-ons to their favorite games inside the brick and mortar GameStop stores. Once theses customers sign on to their system at home, they will be able to download this content. Customers will not have to use a credit card at GameStop for these add-ons like they would to purchase them from the online stores of the video game companies. They would be able to use cash or a check since they are making the purchase at a physical store.
When this plan launches at GameStop stores across the country after the first of the year, customers are sure to flock into the stores on a daily basis to see what new levels and other content they can download. While not specifically mentioned, this also leaves the door open for GameStop to add digital game or movie purchases to their download repertoire. They could even given customers a disc to upload if the customer does not have a connection to the Internet. These are all speculation.
Now, I stated at the beginning of this article that there was something that other companies outside of the video game market could learn from this move by GameStop. Notice, GameStop made
this move towards brick and mortar stores selling downloadable content first. GameStop has come up wit this idea, and is doing everything that it can to make sure that it is the first store on the block that offers such a deal to customers.
They did not wait for giants like Walmart, Target, of Kmart to make the first move in the war for downloadable video game console content. GameStop did not wait for Microsoft, Sony, or Nintendo to come up with a way to sell digital downloads through brick and mortar stores. GameStop did not wait around for others to test the water, they jumped right in.
Secondly, and most importantly, this announcement was made by GameStop in the middle of the fourth quarter. As someone who has worked with retail companies for a long time, I know first hand that most retail companies do not focus on anything during the fourth quarter except for sales. After the first of the year, most planners wonder what they are supposed to do now.
Instead of leading to idle minds and idle hands after the first of the year, GameStop is starting a new program for digital video game downloads. Instead of wondering what to do, planners for GameStop can wonder where to go next with this plan.
By introducing a strong plan in the fourth quarter for implementation in the first quarter, that has not been attempted by the big guys on the block, a company starts the year off in a strong direction. The first quarter of the year is too often used for celebration, or lamentation, of what happened during the fourth quarter. Instead, like GameStop, companies should be starting the first quarter out with a plan that will set the mood for the rest of the year.
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