Yes, it's a broken business model with no easy fix. The only company that managed to turn it around in recent times like that is Netflix. I don't think GameStop's a Netflix so maybe i'll buy some shorts tomorrow.
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Yeah the issue with Netflix is they create their own content along with negotiations with distributors for content!
Gaming the publishers can either do direct access or via deals with the console manufacturers.
GameStop apart from its second hand market is irrelevant.
The only way I could see it turn around is if they had enough cash to go and purchase game publishers and had exclusive distribution rights