GameStop is closing up to 200 stores worldwide

Joanna Estrada
September 12, 2019

GameStop stores are on the chopping block.

As Engadget reports, the sales and earnings report for GameStop covering the second quarter ending on August 3 do not make for happy reading. Digital sales decreased 11.2% to $227.2 million due to weaker title launches in the quarter, compared to a year ago.

Software sales also tumbled, with a 5.3 percent decrease in new software sales, a 17.5 percent decrease in pre-owned sales, 9.5 percent decrease in accessories, and even digital receipts were down 11.2 percent. That decrease meant the company had a net loss of $32 million for the period. We are on track to close between 180 and 200 underperforming stores globally by the end of this fiscal year.

It's important to point out that GameStop operates over 5,700 stores across 14 countries. More store closures are being planned for the coming 12-24 months. His language suggests at least hundreds more. But on Tuesday, executives said they're intent on improving the company and offered details on an initiative they're calling "GameStop Reboot". Earlier this year, the retailer announced a series of partnerships in the fast-growing esport space, which involve live video game competitions, are growing at a breakneck pace. A major headwind facing the retailer is that gamers no longer necessarily need or want to buy their video games at a brick-and-mortar store.

"We are committed to acting with a sense of urgency to address the areas of the business that are critical to achieving long-term success and value creation for all our stakeholders, said GameStop CEO George Sherman in a release".

The video games industry is set to go through massive upheaval in the coming years.

Other reports by Click Lancashire

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