This article needs additional citations for verification .(August 2017) |
Company type | Subsidiary |
---|---|
Industry | Computer and Video Games |
Founded | 1998 |
Defunct | July 31, 2010 (United States) August 8, 2010 (Canada) |
Fate | Chapter 7 bankruptcy Liquidation |
Headquarters | Wilsonville, Oregon, U.S. |
Owner | Movie Gallery |
Parent | Hollywood Video |
Website | gamecrazy |
GameCrazy was a video game retailer based in Wilsonville, Oregon. It was a subsidiary of Movie Gallery. The stores were often, but not always, located adjacent to Hollywood Video rental stores.
GameCrazy and its parent company, Movie Gallery, filed for bankruptcy in May 2010. [1]
In 1999, [2] to compete in a growing video game market, Hollywood Entertainment launched a store-within-a-store [3] concept called GameCrazy. It featured the ability to buy, sell, and trade video games, systems, and accessories inside of Hollywood Video stores. [4] Each respective location offered video games for all "next generation" platforms in both new and used conditions. Select locations offered products for older systems such as the NES and Sega Genesis. GameCrazy enabled customers to play a particular title, new or used, prior to purchase. This "try before you buy" option was a staple GameCrazy policy.
Movie Gallery launched a similar store-within-a-store initiative called Game Zone. These stores were developed and implemented for use within Movie Gallery locations while GameCrazy was generally used within Hollywood Video stores. While many locations operated these areas as completely separate brands (i.e. Both Game Zone / GameCrazy operated with segregated staff and management), others operated using a single unified staff. While the majority of GameCrazy stores were located within their respective rental partner, the company did expand their chain to include standalone GameCrazy stores.
As of December 31, 2006, there were 634 GameCrazy locations which were generally located within the same building as Hollywood Video. [5] The construction of standalone "concept stores" were ongoing at the time of the chain's closure, the most recent being opened in Las Vegas, Nevada. GameCrazy contributed 13% to Movie Gallery's revenue for 2006, with 70% of its revenue coming from new and used software and 30% from new and used hardware products. [5] GameCrazy competed with both other specialty retail video game stores, such as GameStop and the fast-growing video game franchise, Play N Trade, as well as big box retailers such as Target, Walmart, and Best Buy.
The company began having financial difficulties despite its major efforts to respond to business challenges. In October 2007, Movie Gallery filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy code. Because of these troubles, the stock price fell below $1 per share and was no longer listed on the NASDAQ stock exchange in November 2007.
On September 28, 2009, Wilsonville, Oregon based Movie Gallery, which owned GameCrazy, announced it would close 200 of its 680 stores by the end of October 2009 due to financial problems brought on from the failing video stores. [6]
Movie Gallery's stock price fell from $1.25 at close in October 2009 to $.05 at close in December 2009, and many locations fell behind on rent. As a result, the company hired restructuring firm Moelis & Company, giving it a 60-day grace period to negotiate with lenders and landlords. But it was forced into bankruptcy a second time in February 2010.
During a company-wide conference call on April 30, 2010, it was announced that all U.S. Hollywood Video, Movie Gallery, and GameCrazy stores would file for Chapter 7 bankruptcy in May 2010 and wind down business. [7] Analysts generally believe that Movie Gallery & Hollywood Video's unprofitability, caused by competition from Blockbuster Inc. and online retailers such as Netflix and Redbox, was one of the major factors in the company's decision to close the retail chain. [8]
As of December 15, 2011, the GameCrazy.com site has been relaunched as a gaming blog, [9] but has ceased to update since late October 2014. [10]
As a video game specialty store, GameCrazy dealt primarily in new and used video game related products such as consoles, accessories, and games. Remuneration for video game and accessory trade-ins was provided in the form of cash or store credit. Consoles were provided with a credit value as cash was not given for previously used video game systems. Noteworthy was the GameCrazy price matching policy whereby the retailer would generally exceed the trade-in value offered by a physical retailer and/or competitor by 5%.[ citation needed ]
Midnight launches for highly anticipated titles were common but not compulsory.[ citation needed ]
GameCrazy instituted a "Wishlist" and "Special Order" feature which allowed the gamer the ability to procure elusive video game related product. The wish list notified the staff once a desired product had been traded in by flagging that particular item in the Point of Sale (POS) System. For immediate action, a special order could be placed where the desired item was shipped from the nearest GameCrazy to the consumer's local store.
The Most Valuable Player (MVP) was a service offered by GameCrazy which provided customers with a 10% discount on used games and accessories as well as a 10% increase in video game trade-in value. Most recently, GameCrazy launched an upgraded discount card called MVP Plus. This not only provided the 10% discount on used games and accessories, but also could be used at other businesses. It also provided a 5% cash back incentive to a member, through the MVP Plus login website, where a form was printed out, and relevant purchase receipts were mailed off. The card member then received a check in the mail for the 5% cash back. There was a yearly fee to carry this card. [11]
Competitors with a similar business model include GameStop and their subsidiary EB Games, which also specialize in new and used video games. In addition to customer trade-ins, the store sold used games once offered for rental in Hollywood Video stores.
A video rental shop/store is a physical retail business that rents home videos such as movies, prerecorded TV shows, video game discs and other media content. Typically, a rental shop conducts business with customers under conditions and terms agreed upon in a rental agreement or contract, which may be implied, explicit, or written. Many video rental stores also sell previously viewed movies and/or new, unopened movies.
Crazy Eddie was a consumer electronics chain in the Northeastern United States. The chain was started in 1971 in Brooklyn, New York, by businessmen Eddie and Sam M. Antar, and was previously named ERS Electronics. The chain rose to prominence throughout the Tri-State area as much for its prices as for its memorable radio and television commercials, featuring a frenetic, "crazy" character played by radio DJ Jerry Carroll. At its peak, Crazy Eddie had 43 stores in four states and reported more than $300 million in sales.
Blockbuster was an American multimedia brand and former rental store chain. The business was founded by David Cook in 1985 as a single home video rental shop, but later became a public store chain featuring video game rentals, DVD-by-mail, streaming, video on demand, and cinema theater. The company expanded internationally throughout the 1990s. At its peak in 2004, Blockbuster employed 84,300 people worldwide and operated 9,094 stores.
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebranded under its current name with an emphasis on consumer electronics in 1983.
Penney OpCo LLC, doing business as JCPenney and often abbreviated JCP, is an American department store chain that operates 656 stores across 49 U.S. states and Puerto Rico. Departments inside JCPenney stores include Men's, Women's, Boys', Girls', Baby, Bedding, Home, Fine Jewelry, Shoes, Lingerie, JCPenney Salon, JCPenney Beauty, as well as leased departments such as Seattle's Best Coffee, US Vision optical centers, and Lifetouch portrait studios.
Hollywood Entertainment Corp., more commonly known as Hollywood Video, was an American video rental store chain. Founded in 1988, the chain was the largest direct competitor to Blockbuster Video until it was acquired by Movie Gallery in 2005. It ceased operations in 2010, when Movie Gallery declared Chapter 7 bankruptcy.
GameStop Corp. is an American video game, consumer electronics, and gaming merchandise retailer. The company is headquartered in Grapevine, Texas, and is the largest video game retailer worldwide. As of February 2024, the company operates 4,169 stores including 2,915 in the United States, 203 in Canada, 404 in Australia and 647 in Europe under the GameStop, EB Games, EB Games Australia, Micromania-Zing, ThinkGeek and Zing Pop Culture brands. The company was founded in Dallas in 1984 as Babbage's, and took on its current name in 1999.
Big Lots Stores, Inc. is an American discount retail chain headquartered in Columbus, Ohio.
Redbox Automated Retail, LLC is an American video rental and streaming media company, based in Oakbrook Terrace, Illinois. Redbox specializes in its namesake automated DVD rental kiosks, and also operated transactional and ad-supported streaming video and television services. Since 2022, Redbox has been a wholly owned subsidiary of Chicken Soup for the Soul Entertainment.
Tower Records is an international retail franchise and online music store that was formerly based in Sacramento, California, United States. From 1960 until 2006, Tower operated retail stores in the United States, which closed when Tower Records filed for bankruptcy and liquidation. Tower Records was purchased by a separate entity and was not affected by the retail store closings.
Movie Gallery, Inc. was the second largest movie and game rental company in the United States and Canada, behind Blockbuster Video. The company rented and sold Blu-ray Discs, DVDs, VHS tapes, and video games. Founded in Dothan, Alabama, the company was headquartered in Dothan, and later in Wilsonville, Oregon.
Rhino Video Games was a video game retailer headquartered in Gainesville, Florida before being sold to GameStop in 2007. Rhino operated more than 90 games stores that carried classic games as well as newer products in fifteen states throughout the U.S. From 1989 to 2007, Rhino Video Games allowed customers to trade in their unwanted video games and systems toward other video game merchandise.
A closeout or clearance sale is a discount sale of inventory either by retail or wholesale. It may be that a product is not selling well, or that the retailer is closing because of relocation, a fire, over-ordering, or especially because of bankruptcy. In the latter case, it is usually known as a going-out-of-business sale or liquidation sale, and is part of the process of liquidation. A hail sale is a closeout at a car dealership after hail damage.
Hastings Entertainment was an American retail chain that sold books, movies, music, and video games and functioned as a video rental shop. As of 2016 it had 126 superstores, which were mainly located in the South Central United States, Rocky Mountain States, and in parts of the Great Plains and Midwestern states. Hastings Entertainment stores were also located in many college towns in the U.S. Hastings Entertainment was headquartered in Amarillo, Texas.
G.I. Joe's was a privately owned retail chain for sporting goods, ready-to-wear clothing, and auto parts; that operated stores in the Pacific Northwest region of the northwestern United States.
FuncoLand was an American video game retailer based in Eden Prairie, Minnesota, that specialized in selling new and used video game software. It is considered the first major video game retailer to allow consumers to sell and trade used video games. The chain's parent company Funco Inc. was established in the home of David R. Pomije in 1988, initially as a leaser of video games to video stores, and then as a mail-order business specializing in used video games. Upon the success of this venture, Pomije moved Funco to a Minneapolis warehouse, and began opening FuncoLand retail outlets nationwide.
Gametraders is an Australian retailer of computer and video games, accessories, anime DVDs and toys. The company was founded in 2001 by Mark Langford, and as of September 2022 they have 8 stores across Australia, after a large amount of store closures.
Golfsmith International Holdings Inc. was an American golf specialty retailer based in Austin, Texas. Each store, along with golfsmith.com, housed a wide selection of golf clubs, shoes, apparel, gadgets and gear from all the major brands as well as proprietary offerings. They also offered custom club fitting, lessons and services for golfers.
West Coast Video was a chain of video rental stores founded in 1983. The company became defunct in 2009, but some existing stores continued to use the West Coast Video banner and run independently. As of 2019, there are currently no West Coast Video stores open in North America.