”GameStop faces the ghosts of Blockbuster’s past,“ consultant Peter Csathy says
The video game retailer GameStop, which prompted an outcry by trying to declare itself an “essential” business in the midst of coronavirus shutdowns before closing all of its stores nationwide, is now struggling for survival.
Since going public in 1992, GameStop has fought to remain a leading provider of hardware and software for gamers, but as its audience increasingly adopts mobile and free gaming, the company’s bottom line has been on a downward slope. In its annual earnings report last Thursday, the company reported $6.5 billion in annual revenues in 2019, down 24% from the previous year. And while GameStop cut its net losses 35% last year, the company still remained $470 million in the red for the year.