GameStop’s woes don’t appear to be anywhere near over, as the company reported on Tuesday that it has cut an unspecified number of jobs to reduce overall costs. The long-running company also reported lower revenue in the fourth quarter. Reuters says GameStop continues to face stiff competition from other online retailers, and weak consumer spending in an uncertain economy isn’t helping matters.
“The growing number of digital downloads is hurting physical retail and there’s simply no reason to go to a store if a consumer can just order a game and download it immediately,”
“I assume they will continue to cut costs to break even or better, but it is inevitable that their sales will fall to unsustainable levels,”
Wedbush Securities analyst Michael Pachter