Game Stop Closing Stores???

Due to poor sales in 2012 GameStop will be closing 500 to possibly 600 stores across the U.S. Since streaming games or downloading them directly to you gaming consoles has become so popular it caused GameStop to report a lower than average profit margin. Such sales figures are forcing GameStop to close numerous stores around the nation which are under performing.

Gamestop CEO J. Paul Raines issued the following statement regarding the store closings:

“New software declined at a rate slower than the market, driving another unprecedented 320 basis points of market share growth. “The GameStop formula continues to show strong resilience in the face of challenging category headwinds, and the new categories of digital and mobile are creating new profit pools that we are exploiting aggressively.”

So this leads me to ask the question; Is GameStop headed to the same fate as Block Buster or Hollywood Video? What do you think Nerd Nation? Can GameStop bounce back from this loss or are they just fighting the inevitable?

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