GameStop is a brick-and-mortar retailer for video games, consumer electronics, and other gaming merchandise. It is considered to be a massive video game retailer across the world.
The popular American video game retailer has been in the market since the 80s and has been facing financial challenges due to the shift toward the digital distribution of video games.
They majorly got popular in 2021 due to the Robinhood fiasco which boosted their stock prices.
But the company has been losing market value and relevance due to its failure to adapt to new norms. As a result, it has been shutting down stores across the United States and Europe.
GameStop shutting down
According to reports (1,2,3,4,5), the company has shut down an entire distribution/fulfillment center in Kentucky, which has led to concerns about the future of the company.
The store closures began in 2020 and thousands have since been closed.
An article on Game Rant suggests that the shutdown is not only happening in the US but also in Europe. Additionally, they are also allegedly closing the majority of their stores in Germany, Austria, and Switzerland.
The company has also been cutting corners for the past few years and even employees have started to lose hope.
The GameStop community on Reddit is dedicated to employees of the company who want to share their thoughts. They’re currently feeling dreadful and hopeless while working in an arguably ‘dying company’.
In the past week, GameStop has also fired a significant number of employees including a lot of Deputy Managers (DMs), which has further added to the concerns about the company’s future.
Consequent to the aforementioned situation, some have decided to resign while others are planning on doing the same.
However, according to some reports, the company is shutting down stores just for the sake of cutting cost and making the business more efficient. Source
All of these factors have led to speculation that GameStop may be shutting down in 2023, but it’s important to note that the company has not officially announced any plans to shut down.
Even though GameStop is facing significant challenges, we still hope that it will navigate these challenges in the coming years. Only time will tell what the future holds for the company.
Keep an eye open as we will update the story with further developments if we come across any.
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