GameStop will close 200 stores worldwide by the end of the year

GameStop to close 180-200 stores globally, many more closures coming

GameStop to close 180-200 stores globally, many more closures coming

The news of the store closures came as the company released its second-quarter earnings report.

Chief Financial Officer Jim Bell said during Tuesday's quarterly earnings call with analysts that the brick-and-mortar video game retailer will likely close 180 to 200 underperforming stores by the end of the fiscal year as the company faces declining sales.

"We are applying a more definitive, analytic approach, including profit levels and sales transferability, that we expect will yield a much larger tranche of closures over the coming 12 to 24 months", said Bell.

GameStop has undergone what it calls a reboot strategy, which incorporates, "optimizing the core business by driving efficiency and effectiveness, creating the social and cultural hub of gaming within each GameStop, building compelling digital capabilities, and transforming our vendor and partner relationships for an evolving video game industry", George Sherman, GameStop's CEO said in a statement. The stores will be shut down between now, and the end of the year. "We will continue to manage the underlying businesses to produce meaningful cash returns, while maintaining a strong balance sheet and investing responsibly in our strategic initiatives".

GameStop is ready for a reboot.

Software sales also tumbled, with a 5.3 percent decrease in new software sales, a 17.5 percent decrease in pre-owned sales, 9.5 percent decrease in accessories, and even digital receipts were down 11.2 percent. Collectible sales increased by 21.2 percent for the company.

We can expect some changes with next-gen consoles in the new Xbox Scarlett and PlayStation 5 consoles launching next year, which GameStop should receive an injection of sales and attention from. Most recently, it announced plans to reinvigorate its stores by "cultivating innovative customer-centric opportunities to bring video game culture to life in every neighborhood".