Gamestop's woes continue, as the company has announced the closure of a total 400 stores by the end of fiscal year 2020. A significant increase from the previously announced 388 globally, with intentions on closing more in 2021.
The retailer giant has faced significant issues for several years. Recently focusing on game paraphernalia alongside the sale of games to compensate for the growing numbers of digital sales. Gamestop has tried many new avenues for revenue including selling game codes, focusing on Funko Pops, and even publishing several indie games.
Like Gamestop, retailers everywhere are preparing for the upcoming next generation. One major concern is how retailers will cope with the upcoming digital editions of Sony and Microsoft's new consoles. Both the PlayStation 5: Digital Edition and Xbox Series S focus on downloading and streaming games and no disc drive. Microsoft officially announced the Xbox Series S earlier this week, which will sell for $299 USD when it launches this November.
Earlier in the week, Gamestop reported massive losses in Q2 earnings with revenue on the decline. This should come as no surprise with the effects of Covid-19 forcing many businesses to temporarily shut down for a long period of time. While the company was already facing several issues due to digital sales growing for consoles, Covid-19's impact should not be downplayed.
Initially, the company refused to close stores causing frustration amongst employees who didn't feel the company had the employees' best interests in mind. Several employee accounts state Gamestop was not properly supplying employees with proper cleaning supplies and hand sanitizer, causing an uproar on social media with the company responding with plans to do better.
In early July, GameStop made mask-wearing mandatory for customers when entering a store. The mandate took effect in late July giving employees enough time to prep with signs and training. Though the mandate is now in effect, employees are still encouraged to assist those who don't wear masks to avoid potential conflict.
Covid-19's impact on the game industry has been pretty substantial. On top of retailers closing and only reopening with major restrictions, developers have had to reorganize schedules with work-from-home mandates now in effect, causing the delay in the development of several games. Publishers have also had to plan alternative digital events in place of conventions typically open to the public, later this week Ubisoft will host its second Ubisoft Forward, dedicated to providing info on new and announced games for 2020 and beyond.