Game's Top Executive Blames Diversity and Inclusion Initiatives for Business Struggles
GameStop's CEO, Ryan Cohen, took to a platform on Tuesday to pin the blame for the chain's impending exit from Canada and France on "wokeness" and DEI (Diversity, Equity, and Inclusion). The once-resilient retailer, which saw a survival spike during the pandemic thanks to the memestock frenzy, has closed over 700 stores since 2020 as digital game distribution becomes the norm.
In a statement released earlier, GameStop revealed its intentions to sell its operations in France and Canada, labeling it as part of an evaluation of its international assets. Shortly following this announcement, Cohen shared his thoughts on DEI, stating, "Email M&[email protected] if you’re interested in buying GameStop Canada or Micromania France. High taxes, Liberalism, Socialism, Progressivism, Wokeness, and DEI included at no additional cost if you buy today."
Gizmodo reached out to GameStop for comment, but there was no response. According to recent records, the company had over 200 stores in Canada and 647 stores in Europe by late 2024.
GameStop's revenue peaked in 2011 at $9.55 billion, but it dropped to $4.33 billion in 2024, marking a 24% decrease from 2023. The digital shift in the media industry has posed challenges for GameStop as companies like Microsoft reshape the market, offering Netflix-like subscription bundles that don't necessitate game ownership, generating more consistent and recurring revenue streams.
Cohen's implication seems to suggest that despite these industry realities, the company's decline is primarily due to worker-friendly regulations, wage requirements, and other policies that affect employee exploitation. However, critics argue that these policies protect underrepresented demographics and minimize unconscious biases in the workplace.
DEI policies, promoted by businesses like Meta, Google, and others, have drawn controversy. Despite intense criticism from former President Trump and his administration, some companies like Apple, Costco, and the NFL have stood firm in keeping them in place.
GameStop almost succumbed to the pandemic's effects, which led to plummeting store traffic and increased content consumption via streaming. However, amidst bitter resentment toward wealthy investors and nostalgia for the once-beloved brand, the company managed to survive with the help of social media attention, issuing new shares, and generating billions of dollars in cash.
Now, with "woke" openly criticized in the US, GameStop might experience a resurgence due to changes in societal attitudes. But despite the ongoing challenges, the company can only survive by cutting costs, including reducing its retail footprint, focusing primarily on collectibles like Funko Pop toys.
DEI policies could have softened the blow for GameStop by fostering a more adaptive and diverse workforce, improving employee engagement, and expanding talent acquisition. Yet, the company's decision to exit multiple countries ultimately stems from broader external factors, such as the rapidly shifting market and pandemic-induced challenges.
- The tech giants like Meta and Google continue to embrace DEI policies, despite facing criticism from certain quarters, as they believe these policies promote a more adaptive and diverse workforce, improving employee engagement and expanding talent acquisition.
- As technology advances and digital game distribution becomes the norm, regulations aimed at protecting underrepresented demographics and minimizing unconscious biases in the workplace have become increasingly important for businesses like GameStop.
- Despite the controversy surrounding DEI policies, some companies like Apple, Costco, and the NFL have chosen to maintain them, recognizing their potential to foster a more inclusive and productive workplace.
- Maybe, in the future, technology could play a role in addressing the challenges faced by retailers like GameStop, providing new revenue streams and enabling them to adapt to changing market conditions more effectively.
