GameStop CFO Rob Lloyd announced the company would be closing the doors of 250 retail during the Goldman Sachs Technology and Internet Conference. 60 to 70 new stores will be opened during the same period.
200 of the GameStop locations being closed are located within the United States, while the remaining 50 are international locations.
Reports of the company losing money have been rampant over the past two years. It’s almost surprising they have put off closing down the massive amount of stores they have in close proximity of each other. In many cases, there are stores located within one mile of one another — and we’ve all seen malls with two GameStops just a short walk from one another.
Many of the extra stores are remnants of the merger with EB Games in 2005. One can’t help but wonder if the company would be better off today if they had simply closed down several of the previous EB Games locations.
Even if the venture with Kongregate goes well, will GameStop be able to stay afloat if the next console generation kills the used game market? That’s something we all have to worry about as the next-gen console reveals are just around the corner.