By Stephanie PappasSeptember 24, 2018 9:18:28A lot of companies want to be seen as the “big guys” in the video game world, but they can’t do that if their products are not “playing the game.”
That is why the games industry is in such turmoil, and the video games are going to continue to suffer as a result.
On Friday, a group of retailers said they are planning to sue GameStop, a division of Target, for allegedly mismanaging the video gaming industry.
The retailers, which include Target, GameStop and Target Meals on Wheels, said in a filing with the U.S. District Court in Los Angeles that they were “in a desperate situation” as the company continues to lose market share in the industry.
The lawsuit, which seeks class action status, claims that GameStop “has systematically mismanaged its inventory of video games and has lost market share to other retailers” since 2015, according to the filing.
The complaint also accuses the company of “lack of oversight” and says GameStop is a “central hub for online gaming.”
The filing was filed Friday.
The retailer groups argue that the “systematic mismanagement” of video game sales led to the loss of $17.6 billion in video game revenue from September 2015 through August 2016.
The plaintiffs argue that GameStops “unfairly and recklessly” increased the prices of its video games to lure in more customers and drive revenue.
GameStop’s website said that its sales increased by 10 percent annually, and that the company saw sales increase by an average of 8 percent per quarter.
The companies are seeking damages, unspecified “economic harm, and punitive damages.”
The lawsuit is being brought by video game store owner and consumer advocate Brian Clements.
The groups is seeking a jury trial and unspecified “remedies” for alleged violations of antitrust law.
The suit is the latest lawsuit to target GameStop.
Last year, the company was forced to settle a class-action lawsuit filed by disgruntled GameStop employees alleging the retailer unfairly raised prices of some games and took advantage of customers.