GameStop Shows Decline, 500+ Stores Closing This Year
Posted on Sunday, February 3 @ 09:59:47 PST by Jonathan_Leack
GameStop has released its fiscal year 2012 earnings which show a drop of 4.6% year-over-year revenue. More telling, its figures display a decline of 4.4% compared to its competitors (Best Buy, Target, Amazon, etc.). Consequently, GameStop is forecasted to close between 500 to 600 stores in 2013 in an effort to balance its earnings.
Much of the blame has been placed on mobile gaming where retailers are cut out of the revenue stream, but the rise of digital downloads are likely an even larger culprit. Sony has been pushing to offer as many games as possible on its new PlayStation Store. Meanwhile, Nintendo is following the trends with an eStore that has quickly grown to match its expanding content library.
With Sony and Microsoft's intention to fight used-game sales next-generation GameStop could see even more dramatic losses in the near future. Its used game sales have been critical to its success and growth, and also an area where other retailers previously weren't able to compete with. Well, they finally caught on, and now Amazon and Best Buy among others are willing to pay ridiculously low prices for the games you don't play anymore.
Losses could also be explained by the long duration of the console generation. Software sales have been disappointing for months on end with gamers less intrigued than ever before due to a stagnant industry. The PlayStation 4 is ready to be announced later this month, but likely won't debut until later in the year. By then, Grand Theft Auto V will make a sharp entrance, and perhaps the Wii U will have something that looks remotely similar to a software library.
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