FuncoLand
American video game retailer / From Wikipedia, the free encyclopedia
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FuncoLand was an American video game retailer based in Eden Prairie, Minnesota, that specialized in selling new and used video game software. It is considered the first major video game retailer to allow consumers to sell and trade used video games. The chain's parent company Funco Inc. was established in the home of David R. Pomije in 1988, initially as a leaser of video games to video stores, and then as a mail-order business specializing in used video games. Upon the success of this venture, Pomije moved Funco to a Minneapolis warehouse, and began opening FuncoLand retail outlets nationwide.
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| Company type | Public |
|---|---|
| Nasdaq: FNCO | |
| Industry | Retail |
| Founded | March 1988; 36 years ago (1988-03), in Minneapolis, Minnesota, United States |
| Founder | David R. Pomije |
| Defunct | December 2000; 23 years ago (2000-12) |
| Fate | Merged with Babbage's to form GameStop |
| Successor | GameStop |
| Headquarters | , |
Number of locations | 406 (2000[1]) |
Area served | United States (contiguous) |
Key people | David R. Pomije (chairman and CEO) Stanley Bodine (president and COO) Robert Hiben (CFO) |
| Products | |
| Revenue | |
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| Total assets |
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| Total equity |
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Number of employees | 1,500 (1999[4]) |
| Parent | Barnes & Noble (2000) |
| Website | Funcoland.com (archive) |
Following Funco's initial public offering in 1992, the company experienced rapid growth spurred by the increasing momentum of the video game industry and the retailer's unique business model, which fended off any direct competitors. FuncoLand stores, which were often located in strip malls, featured sampling areas that allowed consumers to test a video game before its purchase, a practice that Pomije compared to the automobile industry. The retailer's considerable inventory of older titles no longer carried by larger national chain stores sometimes led competing retailers to refer customers to FuncoLand for such purchases. Marketing for FuncoLand included the self-published and ongoing monthly magazine Game Informer, as well as a mail-order catalog and e-commerce platform.
Funco endured a downturn in the mid-1990s caused by an industry-wide slump, and in 1995, the company was subject to a shareholder suit accusing it of artificially inflating its stock price by overstating the capacity of its information systems to control the business; the suit was settled out of court in 1999. The fifth generation of video game consoles brought about the company's recovery, and the release of the Dreamcast granted a single-day sales record. Over the course of its lifespan, FuncoLand operated in 406 locations, and was twice listed by Fortune as one of America's fastest-growing businesses.
In April 2000, two of Funco's rivals – Electronics Boutique and Babbage's Etc. parent company Barnes & Noble – engaged in a bidding war for the company's purchase, concluding with Barnes & Noble's winning bid of $161.5 million. Funco was acquired by Barnes & Noble in June 2000, and was merged with Babbage's to form GameStop in December 2000.