"GameStop was so convinced that the digital distribution of video games was merely a 'passing phase,' and that once the fad was over, brick and mortar stores would continue their dominance in the industry."
"Larry Kuperman reports that after GameStop bought Impulse in 2011, it was just not taken seriously, as the company was convinced their physical stores were where the future lay."
"In 2008, Steam was still nowhere close to replacing the notion of physical copies of games, but Stardock swiftly responded with Impulse, a direct rival that was mostly selling the same games as Steam."
GameStop's belief in the dominance of physical stores led to the underestimation of digital distribution. Larry Kuperman, a former Stardock developer, noted that GameStop acquired the digital store Impulse but failed to take it seriously. Initially launched in 2008 to compete with Steam, Impulse struggled as GameStop focused on its brick-and-mortar business. The rise of Steam, particularly after the release of popular games, marked a significant shift in the gaming industry, which GameStop did not anticipate.
Read at Kotaku
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