Posted 3/27/2024, 5:30:00 PM
GameStop Sales and Earnings Plunge as Shift to Digital Hits Bottom Line
- GameStop reported a steep decline in 4Q 2022 earnings, with sales dropping from $2.23 billion to $1.79 billion year-over-year
- The company recently laid off an unspecified number of employees due to the sales slump
- Analyst Michael Pachter attributes the decline to the rise of digital game downloads hurting physical retail
- GameStop's net income across the board fell 2%, from $313.1 million in 2021 to $6.7 million in 2022
- This follows other struggles for the company like shutting down its crypto/NFT marketplace after 2 years
