GameStop to close 180-200 stores globally, many more closures coming

GameStop to close 180-200 stores globally, many more closures coming

GameStop to close 180-200 stores globally, many more closures coming

As a reminder we are at the latter end of a console generation, GameStop's hardware sales decreased by 41.1 percent, which the company notes is a reflection of Sony and Microsoft talking about the PlayStation 5 and Project Scarlett arriving next year.

As a result, GameStop CFO James Bell announced that up to 200 "underperforming" stores will close by December 31 this year. However, he also expects, "a much larger tranche of closures over the coming 12 to 24 months", so this is far from the end of stores disappearing. As part of a plan to revamp the struggling company, the video game retailer said it will close up to 200 underperforming stores. That decrease meant the company had a net loss of $32 million for the period. Sales in almost every sector of the company's business were down, with new hardware sales plunging 41.1%, reflective of recent announcements for a next-generation console launching in 2020, the company said. And new competition looms: Apple will launch a videogame subscription service on September 19, with a monthly fee of $4.99 a month. 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.

The video game store chain GameStop has announced that it will shut between 180 and 200 of its stores worldwide.

"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", George Sherman, GameStop's chief executive officer said in a statement.

GameStop is trying to keep pace in an evolving and changing video game industry.

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