Video game and nerd culture retailer GameStop appears to be in trouble again.according to A Reuters ReportThe company recently laid off an unspecified number of employees after reporting lower fourth-quarter earnings due to lower physical sales and higher digital purchases.
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as Reuters According to reports on March 26, GameStop said earlier this week that its profits in the fourth quarter of 2023 (October 1 to December 31) totaled only $1.79 billion. In comparison, the company’s profit for the same period in 2022 was US$2.23 billion, equivalent to a 20% decline in overall sales.Interview with Wedbush Securities analyst Michael Pachter Reutersattributed the decline to the rise of e-commerce.
“More and more digital downloads are hurting physical retail, and if consumers can order a game and download it instantly, there’s no reason to go to a store at all,” Pachter said. “Unless management finds a way to boost store traffic, revenue is unlikely to rebound. I suspect they will keep cutting costs to break even or better, but their sales will inevitably drop to unsustainable levels. “
IGN proved Reuters” A report on March 27 stated that GameStop’s overall net profit fell by 2%, from $313.1 million in 2022 to $6.7 million in 2023. Another factor hurting the company was layoffs, which have been reduced The company had approximately 8,000 full-time employees and 13,000 to 18,000 part-time employees as of February 3. This compares with approximately 11,000 full-time employees and 14,000 to 27,000 part-time employees in 2023. IGNGameStop CEO Ryan Cohen has yet to comment on the news, and the company apparently hasn’t held an earnings call to discuss all of this.it appears Reuters Got most of the information via press release on GameStop’s official website.
my city GameStop has been contacted for comment.
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It’s the latest blow to the brick-and-mortar retailer, which has been going through this situation for several years.The company tried to get into cryptocurrencies and NFTs in 2022, and the results close the entire market Just two years later. The store is closed, The employee has resignedand its chief financial officer, Diana Saadeh-Jajeh, Resigned After a big push for cryptocurrency initiatives.