GameStop has record $700m loss in 2018

[DC]

Quote

GameStop put an exclamation point on a difficult 2018 today, announcing full-year financial results featuring the biggest loss in company history. 

For the 52 weeks ended February 2, GameStop reported net sales down 3% to $8.29 billion, while the previous year's net profit of $34.7 million had turned into a record $673 million net loss. GameStop noted that its fiscal 2017 results encompassed a 53-week period, so the numbers may not look as favorable in light of that extra week of sales. However, the fiscal 2018 numbers also include the company's $700 million sale of its Spring Mobile chain of AT&T phone retailers.

https://www.gamesindustry.biz/articles/2019-04-02-gamestop-posts-usd673-million-full-year-loss 

This doesn't surprise me nor do I have sympathy for GameStop giving how they treat their employees and customers. We've all heard the horrendous stories. What does surprise me quite frankly is that GameStop is still in business given the competition from Amazon, Walmart, Target, Best Buy, NewEgg, GameFly, heck even EpicGames store (just naming a few!). I don't see how GameStop remains in business much longer without a substantial business model pivot including closing all physical stores and moving 100% online.

[DylanC]

It really is the beginning of the end for brick and mortar game shops like GameStop et al. Unless they transition to online, it’ll be hard for them to last another decade. Don’t get me wrong, I’d like to see them continue as I have a soft spot for buying from a physical store, but it’s just the way the world/the gaming industry is moving.

[SpaceExplorer]

Hopefully, the employees will find a job where they will get treated better once the GameStop stores start inevitably closing.

[killamch89]

@DCI agree that it really isn't surprising at all given how behind the times Gamestop is. It is dying a slow agonizing death but it is going to fall soon - similar circumstance happened to Blockbuster a decade ago when they failed to update their business model to stay competitive.

[kingpotato]

I actually like to purchase from Gamestop , I will normally get a good deal on used Xbox 360 games, in the past few months they had this promotion of buy two get the third game free as long as the third one is under 10 dollars, as well with just one extra dollar I can get a year warranty for all 3 games. Last Friday they had  4 used games for 20 dollars promotion for any type of platform, I had already spent a lot of money that day so I wasnt able to get anything but I'm planning to go back this weekend for the Last of us and Uncharted 4.

[ChartX Games]

This is indicative of gaming outlets.

They don't tend to last long as they treat everyone like crap; customers and employees alike, and it catches up with them.

That is one big loss though and one that could resonate through the entire Gamestop empire. Probably won't last much longer.

Thanks for the info,
Michael.

[skyfire]

I think with the offline games reducing in demand and the rise in the digital game download improvements. I guess we are going to be seeing more of such losses of many malls and the shops that sell games.