GameStop Once Believed Online Game Sales Were Just a Trend, Reveals Ex-Business Developer

Former Stardock business developer Larry Kuperman shared some eye-opening insights about GameStop’s past beliefs regarding digital game distribution. At one point, the retail giant was convinced that the shift to digital was just a “passing phase,” expecting that physical stores would maintain their stronghold in the gaming industry. Fast forward to today, and GameStop is now more focused on selling second-hand collectibles and Pokémon cards while shuttering hundreds of locations, seemingly moving away from its core video game business.

During a talk at GDC this year, Kuperman reflected on this misguided perspective, recalling his time at Stardock, where he helped develop Drengin, a web store for games that later became known as Impulse. Launched in June 2008 to compete with Valve’s Steam, Impulse initially showed promise as a rival. GameStop acquired it in 2011, but Kuperman noted that the company didn’t take it seriously, believing that its physical stores were the future.

Back in 2008, Steam was significant but not yet the powerhouse it is today. The platform had started gaining traction in 2006, primarily used for updating Valve’s own games and selling a select few titles. It wasn’t until the release of games like BioShock and Team Fortress 2 in 2007 that it began to capture wider attention. Even then, the idea of digital downloads replacing physical copies was still a distant thought. Stardock, known for titles like Galactic Civilizations and Sins of a Solar Empire, quickly responded with Impulse, which offered many of the same games as Steam. For a brief moment, both platforms were seen as top contenders for PC gaming.

Major publishers jumped on board with Impulse, making it an attractive acquisition for a retailer like GameStop. When GameStop bought Impulse in 2011, Kuperman continued to work on it for a few more years, hoping it would help the company adapt to the changing landscape of gaming. However, that’s not how things turned out. Kuperman, who was appointed head of electronic distribution, believed he had found a long-term role.

Now retired, he recounted his experience at GDC, noting that the management at GameStop back then had a very different outlook. They viewed digital distribution as a temporary trend, convinced that brick-and-mortar stores would rebound. Kuperman humorously summarized this mindset as, “I’ve seen the future, it looks just like the 1950s.” By April 2014, GameStop had effectively dismantled Impulse, closing the online store and rendering games purchased through it inaccessible for over seven years.

As for the fate of brick-and-mortar stores, GameStop has closed more than 1,300 locations since 2024, with 727 of those closures occurring in 2025 alone, and hundreds more in January of this year.