GameStop considers installment plans for PlayStation 5 and Xbox Series X

GameStop wants to make it easier for customers to buy a new console, even if they do not have the cash in their pockets. GameStop is considering a plan to launch multiple alternative payment models. These payment options include layaway, installment plans, and rent-to-own. GameStop confirmed the plans during its quarterly earnings report. These options could prove crucial to GameStop.

The PlayStation 5 and Xbox Series X are both launching, but gamers are expecting them to come with high prices. Microsoft confirmed that the Xbox Series X is $500. These could prove too expensive to the millions of people who are underemployed or on reduced salaries due to the covid pandemic. And while many people will likely choose not to buy a system if they cannot afford it, GameStop thinks it can help those who want to try to scrimp and save.

This is separate from Xbox All Access, which is Microsoft’s own program that enables gamers to get an Xbox Series S or Xbox Series X for $25 or $35 per month for 24 months. GameStop is offering Xbox All Access in addition to other third-party payment options. Layaway enables customers to keep a product on reserve at a store until they complete the full payment.

This enables consumers to commit money toward a purchase in smaller chunks.

Once you pay the full price, you can take home your PlayStation 5 or Xbox Series X. GameStop is also adding support for third-party payment services like Quadpay and Klarna. These companies enable you to split up a purchase into 4 payments over a 6-week period. These payments are interest-free. Instead, Quadpay or Klarna takes a commission from the retailers.

GameStop is also planning to work with a separate company to offer a rent-to-own option. This plan allows the customer to walk out the door with minimal up-front money and to pay their purchase off between 30 days and 12 months. Customers can use this to pay as they play. And it also gives the option to return the product at any point during the 12-month pay-off period.

GameStop has seen its revenues and stock price decline in recent years as more game revenue goes digital. But you cannot download new hardware. And GameStop played a significant role in console sales during the debut of the PlayStation 4 and Xbox One in 2013.

GameStop is hoping to repeat that into 2021.

These payment plans are part of ensuring that can work. Of course, it is still an open question what the console launches will end up looking like. Microsoft just released prices and some preorder information on the Xbox Series X, along with Xbox All Access partners. Sony has not announced prices, but Sony did reveal a preorder-signup program for its own online store.

It seems possible that Sony and Microsoft could minimize the involvement of brick-and-mortar retailers for a time. But GameStop’s new payment options should still help it whenever it is able to get PlayStation 5 and Xbox Series X stock.