gamestop poweredup pro rewards downgraded

GameStop has been in a tough place for a long time. The once-prominent retailer is massively in debt, and turnover at executive positions is high. Naturally, they’re looking for ways to save money and stay in business. Unfortunately, that’s going to come at a cost to their most loyal fans. The retailer just announced a revamp to their PowerUp Pro Rewards program, and it’s a downgrade for customers.

PowerUp Pro Rewards downgraded

powerup rewards gamestop downgrade

With PowerUp Pro, customers pay a yearly fee in exchange for rewards, like bonuses on trade-ins. Previously, this subscription cost $14.99, but the price will soon increase to $19.99. Additionally, GameStop is changing up one of the most popular rewards. Pro members used to be able to get a 10% discount on used games and accessories. This is not included in the newly revamped version. Instead, customers get a monthly $5 coupon.

A coupon is nice, but it’s nothing compared to the discount. Customers could potentially save a lot more than $5 with a constant 10% discount. On top of that, these coupons do not roll over to the next month. Use it or lose it. For GameStop, this guarantees that customers will return and make a purchase every month. If not, they forfeit one of the rewards they pay for. At least the new deal still includes a 10% bonus on trade-ins.

This new version of PowerUp Pro is currently “in beta.” Eventually, it will become the standard. With an increase in price and a decrease in potential savings, I don’t see this going over well with most Pro members. It seems like a clear downgrade for those who make frequent purchases. Whether or not it’s a good financial move for the company remains to be seen.

Update: When this article was initially posted, I made the typo of saying “monthly fee” instead of “yearly fee.” Pro members only pay once per year, not once per month.

Update 2: GameStop PR Manager Michael Delgado has reached out to clarify some details. Delgado let us know that this new beta version of Pro will officially kick off on June 2 in 74 test stores. He clarified that GameStop’s objective is to “Create a stronger benefit that appeals broadly to all PowerUp Pro Rewards members.” The new $5 coupon can be used more broadly than the past reward of a 10% discount on used games and appliances. Delgado claims that according to GameStop’s consumer research, the new coupon is more popular than the old discount.

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Ben Lamoreux
Nintendo Enthusiast's Managing Editor. I grew up on Super Nintendo and never stopped playing. Been writing video game news, opinions, reviews, and interviews professionally for over a decade. Favorite franchises include Zelda, Metroid, and Mother.

19 Comments

  1. More for less… My Elite Pro membership expired today, which was discontinued without a peep.

    This will definitely dissuade some from renewing…the only reason I’m considering renewing is because I use the reward points for eShop money, as well as using this as a way to get physical Game Informer magazines.

      1. Where was I saying?

        (Well, it may have been reported on, but I sure didn’t know about it until a few days ago in-store.)

  2. Massively in debt? Where does this author get his information? Gamestop has $800M in net cash and based on their stock price today, an EV (Enterprise Value) of 0.
    If he makes blatantly inaccurate off the cuff statements like that, how can anything in his article be trusted?

    1. GameStop has a ton of debt. They currently have $820M in longterm debt. What’re you talking about? Their stock price point is bordering on the liquidation price point.

      1. Thet retired $350M 2019 notes from the $1.65B in cash on hamd so they still have $472M 2023 notes but $1.3B in cash leftover. The SP is $8 or around $800 Market cap hence EV is less than 0. So to say they are in debt is disingenuous or just ignorant. Another failure of assessment is that many say they “lost” $672M last year when actually that’s due to impairments (write offs) on the capital, they actually had $270M in earnings, $420M EBITA, and $325M in operating FCF. But it’s not expected that people understand finance when it’s easier to throw out inaccurate representation as of a business to make a point.

        1. Their next debt maturation is 2021, not 2023, and it’s at over a 6% interest rate. Apologies, I forgot that they recently paid off the 2019 debt in April. They are in debt. It doesn’t matter how much cash you have in hand if you owe money to other people. That’s what debt is. As a cash flow business, they’re fine. As a publicly traded company, they’re doing terribly. The real problem is that in order to go private, they’re likely going to have to break even or take on additional debt.

          1. Except that debt in business is not necessarily a bad thing, if they feel that they can get a return higher than the debt’s interest rate, which if it’s only just over 6%, that’s a no-brainer for them.

            Debt is not always bad.

          2. Agreed there. It’s definitely not always bad.

          3. Agree, and that was my point, even Apple has $112B in debt. If one looks at something like that or the GAAP losses without at least understanding the non GAAP side of things, one can be misled and makes statements that are disingenuous as was done in this article. The point the authors made was unrelated to the topic too which indicates a bias, something that anyone trying to be objective should avoid.

    2. GameStop is a sinking ship it’s only a matter of time which could be several years but the fact of the matter is they are not special anymore the products you can get there you can literally get anywhere now from Walmart to Target and this little thing we all call the internet where you can basically find anything you could imagine and usually at a lower price. The $5 monthly coupon that expires month-to-month is nothing more than a lackluster attempt to put a Band-Aid on the decreased benefits of the membership not to mention the increased price of it yearly with decreased benefits all around, plus the monthly expiration on that coupon is not going to entice anything more than a minuscule percent of people to use that month to month for a number of reasons I could list on forever but basically let’s say you want a PlayStation 4 controller, well you can get it for 55 instead of 60 with that monthly coupon or you could just go to Walmart to get it for 46 bucks literally any day of the week cuz that’s how much they’ve been selling them at for a long time now. Also The temper sent off of used games and accessories being taken away is a big hit, not that 10% is massive but when you consider the fact that a game at launch cost 59.99 but 6 months later you can get it for the low low price of 57.99!!! I’ve been a member for over a decade and worked at a GameStop as an assistant manager for a little over a year so I have seen that exact scenario play out time and time again and I hated that maybe more than anything, having two pitch a sale to a customer and then with an air of confidence present to them as if it’s some sort of extravagant Deal and savings to the customer that they can save some money if they just purchased a pre-owned but then the moment comes when they ask you how much it cost, then when you tell them they’ll be saving a whopping $3 they look at you like you’re the biggest jackass in the world which honestly I can’t blame them… In the past 2 years or so they have been running through CEOs faster than staff members in the Trump administration, which is very telling to the fact that something at the highest tier is severely wrong… I truly believe that for sure within 10 years and I’ll probably actually say five years GameStop will be extinct…which I honestly feel sincerely bad for the staff in terms of managers to part-timers because I know majority of them enjoy the job and actually give a shit to try and help the customers genuinely but when corporate gives them nothing to work with in terms of actual tangible benefits or creating situations where the staff can present options to the customer that aren’t downright ridiculously asinine or sometimes just plain insulting like trying to sell a 6-month old pre-owned game for $3 less than they could purchase it brand-spanking-new in pristine condition and corporate genuinely expect you to present that to customers as if you are saving them money on a significant level… 99% of people won’t see the $5 monthly coupon as a benefit or increase their desire to shop at GameStop each month to spend that coupon simply due to the financial situation majority of people are in and it just seems downright disrespectful when they at corporate act like that is a serious benefit to their customers… It feels pushy like they’re forcing you to make purchases that you either don’t want to or fiscally wouldn’t be responsible and it has more of a negative impact than anything elseespecially when with that $5 coupon there are still plenty of places you could go purchase the same product for less without any type of discount…I don’t want GameStop to go I would rather shop there for my gaming purchases exclusively but I am not by any means well off in terms of my financial situation so when push comes to shove the main factor and where I make my purchase is in terms of price even more so in the gaming market due to the exclusivity between manufacturers making their products so it honestly makes no difference where you buy it those things they are the same product coming out the same assembly line at every single retailer that sells them… Simply put the corporate executives for GameStop are delusional and I truly believe I’m not at all in touch with their customer base and probably are not at all interested in gaming as a hobby or career they are just simply business men and women trying to make money but not some money they want all the money yes they do not provide circumstances for their staff or situations with their products that entice customers to shop there over any other store with the exception of their membership program which the past 2 years they have systematically dismantled more and more… There are several purchases for a fact I have made ranging from $100 to $300 that I would have honestly not made at all if not for the membership program which most of the benefits that I got off the card were simply from the amount of cash I spent at the store and points accumulated from my spending…damn it all the video game industry as a whole from microtransactions to incomplete games that they call “GAMES AS A SERVICE”, IS GETTING OUT OF HAND AND AT SOME POINT THERE WILL BE A BREAKING POINT…

  3. GameStop is in this ridiculous loop wherein they fail to attract customers because they present a poor value so they make their offerings worse to compensate for their poor earnings then rinse and repeat.

    Have they ever considered lowering their prices and offering better service as a means to increase sales volume?

  4. Just killed the dying horse I was nursing Gamestop. I hardly buy anything from gamestop anymore and my brother has pro membership anyway so I don’t need it. Going to stick with bestbuys gamerclub which is 10 times better then this.

    1. but that club was discontinued…

  5. I have two questions (one may be answered by the other)
    1. Is the 5$ off a month for anything, or just used stuff?
    2. If anything, can you use multiple over a period of time (as in if I have a preorder that’s a year away, could I use 12 5$ coupons to pay it)?

    That could be a potential game changer, especially if you don’t buy a lot of used games and such. Get a bunch of points, use the 5$ off for discounted prereg games, then use rewards to finish it off

  6. They are a bunch of con artists I brought a ps4 pro there and only got 108 dollars for the system I am a pro member and the the only thing they said was oh since its 2 months old that is how much we can give you if anything I hope this company does go bankrupt instead of fucking people over

  7. They are a bunch of con artists I brought a ps4 pro there and only got 108 dollars for the system I am a pro member and the the only thing they said was oh since its 2 months old that is how much we can give you if anything I hope this company does go bankrupt instead of fucking people over

  8. Haha! The reason they are in trouble financially is because of stuff just like this. They keep wanting more and more, and giving back to us less and less. Add that to the too corporate approach they began taking in the stores, getting pushy about preorders and warranties. I began dreading actually checking out with the cashiers because they got all snooty about these things and when I would say no thanks they’d keep keep hounding me until I had to flat out say I said no! My membership just recently expired, also with no heads up, and I will most certainly not be renewing. I’ve grown tired of gamestop’s bad attitude and terrible serves enough that I’ve decided to stop shopping there entirely. They’ve lost my business entirely at this point.

  9. The only reason I even signed up for the Pro Membership was the discount on used games, and I don’t shop there every month, I go in maybe 2 – 3 times a year and buy a bunch of used games. Now this membership (which I just resubbed to this month) is going to be worthless?

    Thanks Gamestop, Power to the POP Figures!

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