GameStop To Close 150 Stores Worldwide

Increased competition from online retailers and downloadable games has put a strain on the gaming store GameStop. The once booming chain saw a decrease in revenue in 2016 and had difficulty making sales in the fiscal year, according to the Wall Street Journal.

The retailer announced a drop in sales from 2016 and a plan to close roughly 150 stores, between two and three percent of its global stores, according to a release. The release also noted that total global sales were down by 13.6 percent during the fourth quarter, a stat that may have been responsible for a drastic drop in stock prices Thursday.

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The release reiterated a January announcement that put the blame of low revenue around the holidays on “ weak sales of certain AAA titles and aggressive console promotions by other retailers on Thanksgiving Day and Black Friday.” And a decrease in digital sales was attributed to fewer video game releases.

The release highlighted the most successful areas of the business and the plans to further expand them. The company’s technology brands (Think Geek, Simply Mac and others) however increased almost 44 percent. The release said that the Fortune 500 company is planning on opening 65 new brands stores and 35 new Collectibles stores around the world.