GameStop's Digital Dilemma: Shrinking Stores, Plunging Sales

0:00GameStop is getting crushed by the shift to digital video games, where folks just download titles right to their consoles instead of hitting the store. Nearly 90% of sales are digital now, leaving physical copies at just 10.5%, and that's dragging down their whole business, model. The company spelled it out in their latest filing with the SEC, warning that downloads from Sony, Nintendo, and Microsoft are eating up new game, sales. Even worse, some consoles only handle digital stuff, killing off physical buys completely, and hitting both new and used game revenue hard. GameStop's founder came out saying they got to shrink the store count even more, from almost 3,000 down to 1,500. 98 already. Pass tries to branch into other products flop big time in that massive footprint. Sales dipped to $3,630,000 last fiscal year, from $3,823,000 the year. Before, but they cut costs and swung to a net income of $418 million.

1:02Still, analysts like Michael Pacter call it a lost cause, saying no smart investors touching it. Physical sales ain't coming back with kids growing up on downloads only, so GameStop's betting on slimming down to survive whatever's next in retail. Derm news today, powered by AI bringing you what matters. I'm Corey with the story.