GameCrazy
| Company type | Subsidiary |
|---|---|
| Industry | Video game retail and rental |
| Founded | 1998 in Wilsonville, Oregon, United States |
| Defunct | 2010 |
| Fate | Filed for Chapter 7 bankruptcy and ceased operations |
| Headquarters | Wilsonville , United States |
Area served | United States |
| Parent | Movie Gallery |
GameCrazy functioned as a video game rental and retail chain headquartered in Wilsonville, Oregon, operating under the ownership of Movie Gallery. Its outlets were frequently situated next to Hollywood Video stores. Both GameCrazy and Movie Gallery filed for bankruptcy protection in May 2010.
History
In 1999, Hollywood Entertainment introduced GameCrazy as an in-store concept within Hollywood Video locations, allowing patrons to purchase, sell, and trade video games, consoles, and accessories. The chain stocked both new and pre-owned titles for current gaming platforms, with some stores also carrying legacy systems such as the NES and Sega Genesis. A distinctive aspect of its business model was the "try before you buy" option.
Movie Gallery ran a comparable initiative called Game Zone inside its stores, occasionally employing separate personnel from those at GameCrazy sites. While most GameCrazy outlets were colocated with Hollywood Video, the company also developed standalone stores.
As of December 31, 2006, GameCrazy operated 634 locations, mostly housed within Hollywood Video premises. The company was also pursuing standalone "concept stores," including a recent launch in Las Vegas. In 2006, GameCrazy contributed 13% to Movie Gallery’s total revenue, with 70% derived from software sales—both new and used—and 30% from hardware products. It competed against specialty retailers like GameStop and Play N Trade, as well as large retailers such as Target, Walmart, and Best Buy.
Downfall
Despite attempts to mitigate operational challenges, the company encountered severe financial distress. In October 2007, Movie Gallery filed for Chapter 11 bankruptcy protection, triggering its stock price to fall below $1 per share and resulting in delisting from the NASDAQ in November of that year.
On September 28, 2009, the Wilsonville-based parent company of GameCrazy revealed plans to shutter 200 out of its 680 stores by October amid continuing financial pressures within the shrinking video rental sector.
Between October and December 2009, Movie Gallery’s stock value plunged from $1.25 to $0.05 per share, with numerous locations falling behind on rent payments. The company engaged restructuring advisors from Moelis & Company to negotiate a 60-day extension with creditors and landlords but ultimately filed for bankruptcy again in February 2010.
During an April 30, 2010 conference call, it was announced that all U.S.-based Hollywood Video, Movie Gallery, and GameCrazy stores would file for Chapter 7 bankruptcy in May and cease all operations. Industry analysts largely attribute this collapse to fierce competition from Blockbuster Inc. alongside online rental services like Netflix and Redbox, which significantly reduced market share.
By December 15, 2011, GameCrazy.com was relaunched as a gaming-focused blog but ceased updates after October 2014.
Store information
GameCrazy specialized in both new and pre-owned video game merchandise including consoles, accessories, and software titles. Customers trading in items received either cash or store credit; however, used consoles were eligible only for store credit. Its price matching policy generally exceeded rival trade-in offers by approximately 5%, strengthening its competitive positioning.
Optional midnight launches for major game releases were frequently held. The retailer also provided a "Wishlist" and "Special Order" service that allowed customers to reserve hard-to-find products by marking items in the point-of-sale system or arranging transfers from other locations.
The Most Valuable Player (MVP) program offered a 10% discount on used games and accessories along with a 10% boost on trade-in values. An enhanced MVP Plus card extended these benefits further by providing a 5% cashback reward redeemable through mailed receipts; this upgrade required an annual membership fee.
GameCrazy’s primary competitors included industry leaders such as GameStop and its subsidiary EB Games. Additionally, it retailed used games that had previously been available for rent at Hollywood Video outlets.
See also
References
External links
- Articles with short description
- Defunct retail companies of the United States
- Video rental services
- Companies based in Wilsonville, Oregon
- American companies established in 1998
- Retail companies established in 1998
- Retail companies disestablished in 2010
- Video game retailers of the United States
- Companies that filed for Chapter 11 bankruptcy in 2007
- Companies that filed for Chapter 11 bankruptcy in 2010
- Companies that filed for Chapter 7 bankruptcy in 2010
- Companies that have filed for Chapter 7 bankruptcy
- 1998 establishments in Oregon
- 5
- Companies of the United States by year of establishment