Like, More Trouble Than Usual
Gamestop is no stranger to financial woes. Online retailers like Amazon have left their business model in some pretty serious trouble, and this last quarter was an especially savage one. Company profits took a 25% dive, which some analysts might describe as ‘bad.’ But maybe that’s the fault of all those store closures, right?
Well, no. Actually, the number remains the same even with those closures taken into account. And this is a separate story from the 20% drop the company experienced before. Plus there’s the big layoffs they had to weather. Before that, there were predictions about the company going under, which are less than a year old. If you go back just a tiny bit further, Gamestop had to survive almost 500 million in losses. Things aren’t going great for the gaming retailer, in other words.
The company had a brief period where their stock was at a 17-year low, which accounts for the 25% bath they took in the markets. Presumably the imminent release of a new generation of consoles will give them a much-needed boost. But there’s no telling how long that will last. We could be seeing the company on its last legs. Where will children go for their video games once Gamestop crumbles to dust? How will parents shop for consoles and games without this last brick and mortar bastion?
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GameStop In Pretty Serious Trouble