GameStop Announces It will Shut Down over 300 Stores

GameStop

In recent years, the video game stores and related items to GameStop have faced a complicated situation as its business model has fallen steadily and the transition to the digital sector has reduced what was previously a profitable activity. Amid the wave of criticism it has received for its response actions to COVID-19, the store presented its financial report.

GameStop revealed the financial results corresponding to the last quarter of the fiscal year, which ends for this month, where it reported that its income fell 28%, as did its sales in hardware, software, and accessories, which continue to decline as in recent months.

Likewise, annual income registered a decrease of 22% compared to the previous fiscal year, which represents a loss of $470.9 million. Console and game sales on GameStop during the fiscal year ended also posted negative results, and the only industry that stood up for the company was that of collectibles.

As in its recent reports, GameStop notes that one of the reasons for negative results is related to the drop in sales of consoles and games attributable to the end of the cycle of PS4 and Xbox One, so it is expected that with the arrival of PS5 and Xbox Series X some sectors will rebound.

Finally, the store reported that, following the strategy it launched since last year, it will close more than 300 branches in the new fiscal year, which are counted, up to now, in 5,500 stores.

Rajesh V
Rajesh is a video game enthusiast and currently serving his keen knowledge from the video game industry here at GamingUncle as a lead Video Game News Editor and Reporter.