GameStop To Close 250 Locations Worldwide

While retailer GameStop has been bullish on the sales prospects of the Nintendo Switch, but as a business, the company has seen a dismal 4th quarter. GameStop announced on Thursday that hardware sales dropped 29.1% and software sales fell by 19.3% for the past sales quarter ending January 29th. The company cited competitive sales offerings from other companies, with Wal-Mart, Target, and Amazon.com and a weaker “video game category” as the culprits.

In response, GameStop plans to close 2-3% of its brick-and-mortar stores in 2017, or 250 worldwide. 150 locations will be closed in the United States alone. No specific locations have been announced as of yet.

Following this news on Friday, the company dropped down to $20 per share on Wall Street.

Moving forward and in response to these sales figures, GameStop will no longer disclose quarterly earnings to the financial community.Chief Financial Officer Rob Llyod explained that only annual figures will be provided. “We believe that providing only annual guidance will reduce investor distraction as we continue to diversify the company and seek to maximize long-term shareholder value.”

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A man with a plan. My favorite video game franchise is Pokemon, but his favorite video game is Resident Evil 4. I can also tell you trivial cartoon factoids.