GameStop to Close Hundreds of Stores, Shift Focus to E-Commerce and Cryptocurrencies

GameStop to Close Significant Number of Stores, Invest in Bitcoin

GameStop, the video game retailer, announced plans to close a significant number of its stores in the coming months as part of a broader effort to reinvent itself in a rapidly changing retail landscape.

The company, which has been struggling to adapt to the shift towards digital gaming, will be closing around 300 stores, or about 15% of its total locations, in the next two to three months. The closures will be focused on underperforming stores, with the goal of streamlining the company's operations and improving profitability.

In addition to the store closures, GameStop also announced plans to invest in Bitcoin, the popular cryptocurrency. The company has partnered with the digital payments platform, BitPay, to begin accepting Bitcoin as a form of payment at select stores.

The move is seen as a way for GameStop to stay ahead of the curve and appeal to a younger demographic that is increasingly interested in digital currencies. The company hopes that by accepting Bitcoin, it will be able to attract new customers and increase revenue.

"We are committed to evolving our business to meet the changing needs of our customers," said GameStop CEO, Jim Ganley. "By closing underperforming stores and investing in new technologies like Bitcoin, we are positioning ourselves for long-term success and growth."

The store closures and investment in Bitcoin are part of a broader effort by GameStop to transform its business and better compete with online retailers like Amazon. The company has also been investing in its e-commerce platform and expanding its services to include used game sales and pre-owned electronics.

The move comes as the video game industry continues to shift towards digital distribution and online gaming. GameStop's struggles to adapt to this shift have led to declining sales and profits in recent years.

The company's stock price has been under pressure in recent months, and the announcement of store closures and the investment in Bitcoin was met with a mixed reaction from investors. Some analysts see the move as a necessary step for GameStop to stay competitive, while others are skeptical about the company's ability to successfully navigate the changing retail landscape.