Citing increased competition, falling consumer demand, a move toward digital distribution and publisher-imposed discounts during the holiday season, shares of video game retailer GameStop plunged 12% late last week after it announced Q4 revenue of just over $3 billion, down almost 14% year-over-year, a loss that was slightly greater than analysts’ expectations. GameStop’s stock is down around 31% in the past 12 months.
As reported by USA Today, GameStop saw hardware sales drop 29% as compared to 2016. Software sales didn’t fare much better with a 20% decline.
Along with the sagging sales news, GameStop announced it would shutter between 2% – 3% of its retail outlets, which could mean the closure of around 200 stores.
On a brighter note, GameStop reported better sales and revenue from its technology and collectibles brands Spring Mobile and ThinkGeek, which increased 44% and 28% respectively.