Despite Job Cuts, GameStop’s Quarterly Revenue Drops

(CTN News) – The videogame retailer GameStop (GME.N), opens new tab announced on Tuesday that it had cut unspecified numbers of jobs in order to cut costs and that its fourth quarter revenue had declined amid rising competition from e-commerce firms and weak consumer spending in an uncertain economic environment.

Its shares were down 15% in GameStop extended trade after the results were released for the Grapevine, Texas-based company.

Both Take-Two Interactive Software and Electronic Arts reported poor earnings last month, despite numerous reasons why the gaming industry is experiencing a GameStop slowdown from pandemic peaks. They are facing high borrowing costs, sticky inflation, and a slowdown in demand from pandemic peaks in their respective markets.

During the fourth quarter of 2015, revenue for the company was $1.79 billion, down from $2.23 billion the previous quarter, according to GameStop.

The video game retailer has also recently announced it will close down its operations in Ireland, Switzerland, and Austria as part of its recent cost-cutting measures as part of its ongoing efforts to reduce operating costs.

An adjusted basis, the company reported earnings per share of 22 cents for the fourth quarter, compared with 16 cents for the same period last year.

Aside from the ongoing shift to digital sales of video games, GameStop has also had to deal with the competition from online retailers such as Amazon.com (AMZN.O) and other online retailers.

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