While GameStop does make most of it's profits from game sales, they do make money off peripherals and consoles. Plus, handhelds aren't going anywhere. GameStop might not be the juggernaut it is now in the post physical media world, however, people will still need extra controllers, cables, consoles, handhelds, accessories, etc. People, who are impatient, are not going to want to wait a few days when their controller breaks or a new console comes out. They want to go and pick it up. Amazon is trying to combat this (see their drones). They know the convenience of grabbing locally beats out waiting, especially in places you have to pay tax regardless.