This means the company will be closing approximately 150 least-performing stores from its 7500 total. Paul Raines, Chief Executive Officer of GameStop, explained that digital sales are to blame for why their console and game sales have slowed down. Software sales dropped by 19.3 percent but new hardware sales dropped by 29.1 percent. The figures worry analysts. But not everything is bad as the future still looks promising. Raines explained that their focus is now on the “new hardware innovation in the video game category”. With gaming consoles such as the Nintendo Switch selling out quickly there is definitely a high demand for these products. Nintendo also acknowledged this and announced it plans to double their production this year.
There are some other bright points too. GameStop’s “non-gaming businesses drove gross margin expansion and significantly contributed to our profits”, Raines explained. The company saw a 27.8 percent increase in sales for collectibles, especially with Pokémon-related apparel and various toys. The trend is estimated to continue the following year. Considering all of this, market analysts say GameStop appears to be pivoting to adjust.