Digital Downloads Close 150 GameStop Stores

GameStop announced it is closing 150 shops across the world after sales dropped last year. According to The Wall Street Journal the closures are due to the popularity of digital downloads. As digital sales rise, retailer sales drop, as proven by the 14% drop in sales at GameStop in 2016. GameStop representatives have not revealed which stores will close, but that most of the closures will be in the United States. They also stated they will be focusing more on their non-gaming businesses from now on by opening 35 more collectible stores this year. Sales at the company’s 86 collectible stores were up by 59.5% last year, and they expect the sales to continue to rise. However, chief executive J. Paul Raines told The Wall Street Journal that they hope the release of the Switch will boost their sales.
“The Switch has provided a dramatic lift in traffic in stores and has real potential to be Wii-like in its ability to expand the gaming category from core to broad audiences.”
Have you switched to digital downloads, or do you prefer physical copies? Let us know in the comments!