Bell also mentioned during the earnings call that the majority of of GameStop stores worldwide are profitable, but said "we have a clear opportunity to improve our overall profitability by de-densifying our chain".
In brief: GameStop has used its Q2 earnings call to reveal the closure of 180 to 200 of its "under-performing" stores globally.
We can expect some changes with next-gen consoles in the new Xbox Scarlett and PlayStation 5 consoles launching next year, which GameStop should receive an injection of sales and attention from. Global sales decreased 14.3 percent to a total of $1.3 billion. Same-store sales fell 11.6%.
The company said Tuesday that it would be closing up to 200 stores by the beginning of 2020. The company is trying to find its way back into the red, as it has been hit with financial losses, failed company sales, and more issues over the last few years.
"While we experienced sales declines across a number of our categories during the quarter, these trends are consistent with what we have historically observed towards the end of a hardware cycle", said Bell. Instead, they can download the games directly to the gaming console, without having to leave their home. And new competition looms: Apple will launch a videogame subscription service on September 19, with a monthly fee of $4.99 a month. If that happens, video game stores could dry up like CD stores did in the early 2000s.
Your local GameStop may not be open for much longer following the company's latest, and not very positive, second quarter fiscal results.
"We are committed to acting with a sense of urgency to address the areas of the business that are critical to achieving long-term success and value creation for all our stakeholders", George Sherman, GameStop's chief executive officer said in a statement.
The video games industry is set to go through massive upheaval in the coming years. Previously, it had expected a decrease between 5% and 10%.