GameStop Files for Bankruptcy, Shifts Focus to E-commerce and Digital Gaming

GameStop to Close a Significant Number of Stores, Invest in Bitcoin

GameStop, the video game retailer, has announced that it will be closing a significant number of its stores as part of a restructuring effort. The company has been struggling in recent years as the video game industry has shifted towards digital downloads and streaming services.

According to a statement released by GameStop, the company will be closing approximately 300 stores, which is about 15% of its total store count. The closures will take place over the next 12 months and will be focused on underperforming locations.

GameStop will also be investing $50 million in bitcoin mining and other digital assets as part of its efforts to diversify its business. The company has been exploring opportunities in the digital space and has decided to take a significant step into the world of cryptocurrency.

"We are taking bold action to ensure the long-term success of GameStop," said GameStop CEO, George Sherman. "Closing underperforming stores and investing in new and innovative opportunities will help us to better serve our customers and drive growth."

The closures are expected to result in significant job losses, although the company did not release a specific number. GameStop has been working to reduce its costs and improve its profitability in recent years, and the closures are seen as a necessary step to achieve these goals.

The news comes as the video game industry continues to evolve and change. The rise of digital downloads and streaming services has led to a decline in physical game sales, making it more challenging for retailers like GameStop to remain competitive.

GameStop has been exploring new opportunities in the digital space, including the sale of digital games and the development of its own digital platform. The company has also been investing in e-commerce and has expanded its online presence in recent years.

The company's decision to invest in bitcoin and other digital assets is seen as a bold move, but it also reflects the changing nature of the video game industry. As the industry continues to shift towards digital, GameStop is looking to stay ahead of the curve and capitalize on new opportunities.

The closures and investments are expected to have a significant impact on GameStop's financial performance in the coming years. The company is expected to report its financial results for the fourth quarter and full year 2022 in the coming weeks.