We’ve all made jokes about GameStop and its low offerings when you trade in old games at some point in our lives, but there’s a lot of people who depend on the stores and their job roles to make a living.
Sadly for those people, GameStop has announced that it’ll be closing up to 200 stores across the globe, with countless jobs being affected. It’s rumoured that even more could be closing as time goes on.
During the company’s most-recent earnings call, GameStop CFO Jim Bell admitted that sales have dropped by 14.3% year-over-year, with the company posting a net loss of $415 million in its Q2 earnings report.
Bell went on to explain that 95% of the company’s 5700 stores worldwide are profitable, but that some will be closed though this is down to more than just their profitability.
Once upon a time, video game stores were an integral part of the high street shopping experience, but now online retailers and digital downloads have made it easier, faster and cheaper than ever to buy games.
It can often be much more expensive to pick your game up in-store rather than online, and as the pre-order culture of gaming shifts, physical games stores are sadly becoming less and less necessary.
The news has caused some controversy on Twitter as lots of people celebrate the closing of the controversial stores – despite the many people who will be losing their jobs.
One user responded: “For anyone saying how happy they are with GameStop struggling and closing stores. Just remember we need stores like these to stay open. Need competition. Also I throughly enjoy going to Gamestop and the fact they offer collectible figures and not get price gouges.”
Hopefully those who will be affected by the GameStop closures will be able to find employment elsewhere!
Featured Image Credit: GameStop