It’s not a good day for bricks and mortar video game stores as shares in North American retailer GameStop have plummeted by 39% after the they posted their latest fiscal quarter results.
Although the company still posted a net profit of $6.8 million, revenues were down a huge 13.3%, much lower than had been forecast by analysts. Hardware sales were down 35%, and software sales were also in decline down 4.3% to $446.4 million. The only area which saw growth was collectables, so expect to see even more Funko Pops and other tat in the stores.
GamesIndustry.Biz report that the price of shares in the company have not been this low since 2003.
The news follow the announcement that Sports Direct are looking to take over UK retailer GAME. If that happens then they have said they will look in to closing stores and merging them in branches of Sports Direct and House of Fraser.