GameStop Announces 200 Store Closings Due To Sales Decline
GameStop is set to close up to 200 stores by the end of the year.
The video game and electronics store has recently seen a major decline is sales.
I gotta be honest the numbers look terrible.
According to NJ.com, GameStops "third-quarter earnings call as it revealed that hardware sales plunged 41.3% in the quarter ending Aug. 3 and overall sales fell about 14%."
Because of these numbers the CEO is expecting 180 - 200 to shut down by 2020.
The stores that are set to close haven't been announced yet. With so many locations in NJ, I'm sure some will close nearby.
One GameStop thinks the reason for the decline of hardware is due to "on announcements that game makers such as XBox and PlayStation would be coming out with new “next generation” consoles in 2020." via NJ.com.
That does make total sense.
Why buy a whole new (super expensive) video game console when a newer model will come out in a year.