GameStop has been struggling for quite some time, and recently they took another blow. The once-great gaming retailer has seen a tremendous amount of executive turnover in the past few years. Multiple CEOs have tried to steer the company in a new direction, but they’ve found little success. The recent holiday sales period should have brought good news, but instead, it brought a 27.5% decrease in sales over last year. They say bad news comes in threes, and GameStop is also facing store closings and a stock plunge.
GameStop store closings and stock plunge
Along with the sales report, we’ve learned that even more stores are closing down soon. A website dedicated to tracking their closures since 2017 counts 55 stores that are currently holding liquidation sales. These GameStop stores are scheduled to close later this month. Meanwhile, the company’s stock is in a free-fall. At press time, its stock has plunged by about 15.38% or over one-seventh of the company’s value.
GameStop issued a press release calling the sales decline “indicative of overall industry trends impacting the video game industry and driven by an accelerated decline in new hardware and software sales.” Naturally, PlayStation 4 and Xbox One sales are declining as new hardware is on the horizon. Apparently the revenue from Xbox One and PlayStation 4 revenue was “well below expectations.” Switch, however, is selling quite well.