Video game retailer GameStop has recently collaborated with developer Niantic to modify its stores into virtual destinations in its new mobile application “Pokémon Go“.
For the next four months, 500 GameStop stores will become part of the location-based AR (augmented reality) game and will show up in the game as “PokéStops” or “Gyms” which will be offering the chance to receive in-game rewards by interacting with virtual objects that will only be visible when players look at their surroundings through a smartphone camera.
Because of this pandemic situations, GameStop encourages “Pokémon Go” players to visit the website or speak to store employees about safety measures. The move is designed to drive players into stores, which have seen lower customers from the pandemic outburst. The brand is trying to drive foot traffic to its store locations in this critical holiday shopping season.
“Pokémon Go” urges gamers along with their AR creatures to engage in virtual battles with other players, giving GameStop a better chance of reaching consumers. For the game’s most committed fans, Driving store visits also helps to cross-sell merchandise inspired by “Pokémon Go”.
The activation comes as GameStop works to regain sales growth after several years of declines and as more consumers with highspeed broadband connections downloaded games directly online rather than buying them in a physical format. The pandemic has contributed to the company’s woes as people generally avoided stores and many locations were forced to close temporarily.
GameStop reported that there was a decline of 13% in same-store sales, and the net sales dropped 27% to $942 million. However, GameStop saw 800% growth in online sales as more people preferred e-commerce. E-commerce sales are remaining elevated despite efforts like the “Pokémon Go” activations.
Meanwhile, this shows Niantic continuing to travel ahead with this new idea of developing technology to create interactive, location-based AR experiences. The goal is to develop a parallel virtual world that people can see while using smartphones or AR headsets
. This technology has marketing applications (including digital signs that appear as people walk near stores, restaurants, and other businesses, showing them customized offers and other promotions). Niantic CEO John Hanke had earlier expressed his vision of turning the company into an “anti-Amazon” by inspiring people to visit nearby stores instead of e-commerce.
Despite the pandemic, Niantic has illustrated that it can swiftly adapt to these changing consumer habits. As people spent more time at home during this lockdown and spring, the company re-create “Pokémon Go” for indoor players who turned to mobile games for entertainment and relaxation. The new strategy helped “Pokémon Go” to boost player spending 30% to more than $1 billion during the first 10 months of 2020according to the app researcher Sensor Tower.
