After suffering a rough fourth quarter in 2016, GameStop will be closing at least 100 stores soon, according to a recent financial report. Hardware sales declined by 29.1%, even though the PlayStation 4 Slim, PlayStation 4 Pro, and PlayStation VR all launched within that period. Software sales were down by 19.3% as well. The retailler also blamed "weak" sales of big budget AAA games for the harsh decline, mentioning that the latest Call of Duty title had disappointingly sold 50% less than 2015's Black Ops 3. This announcement comes after Microsoft revealed Xbox Game Pass, a digital subscription that allows players to have access to a wide catalog of games for a monthly fee, which further hurt the brick-and-mortal GameStop, causing stock prices to drop by 7%. This leads to a total stock decline of 31% for the company, in the past year alone.
Total global sales decreased 13.6% to $3.05 billion, while consolidated comparable store sales declined 16.3% (-20.8% in the U.S. and -4.6% internationally). As stated in the company’s holiday sales release in January, the fourth quarter was significantly impacted by weak sales of certain AAA titles and aggressive console promotions by other retailers on Thanksgiving Day and Black Friday. As a result, new hardware sales declined 29.1% and new software sales declined by 19.3%. Pre-owned sales outperformed new video games, declining 6.7% compared to the fourth quarter of 2015.