GameStop will reportedly receive a portion of Microsoft’s digital Xbox sales revenue
In context: It’s no secret that GameStop hasn’t been doing too well throughout 2020. After the Covid-19 pandemic kicked into high gear and forced non-essential businesses to shut down, GameStop lost a significant revenue stream — even if the closures were only temporary.
On a less 2020-specific note, as the gaming world has increasingly moved toward digital distribution instead of physical discs, GameStop has found itself in a difficult position. Over the next decade, who’s to say whether a significant amount of people will still be buying games on discs at all.
With services like Elon Musk’s Starlink in the works, even unserved or underserved areas may soon get reliable internet, reducing the need for physical game installation media.
Interestingly, the very thing GameStop is struggling to compete with may soon prove to be its savior. According to a new report from Ars Technica, there was more to GameStop’s recent “strategic partnership” with Microsoft than it seemed.
Indeed, the outlet reports that GameStop will actually be receiving a portion of Xbox’s digital sales revenue from here on out. The exact number is still up in the air, but the money will be funneled toward GameStop whenever the retailer manages to bring a device “into the Xbox ecosystem,” whatever that means.
However much the percentage is, it will be interesting to see how much of an impact it has on GameStop’s operations moving forward. We’ll be keeping our eye on the company’s new partnership with Microsoft, and we’ll let you know if any new developments come to light.