Editing GameStop (section)

====Financial losses====
[[File:Gamestop Kingstowne - 2.jpg|200px|thumb|Interior of a GameStop store in [[Kingstowne, Virginia]] in 2018, with several items on [[closeout (sale)|clearance]]]]
Shares of GameStop stock fell 16% in 2016.<ref>{{cite news |url=https://www.barrons.com/articles/videogame-sales-are-fading-and-its-crushing-gamestop-1484329331 |title=Videogame Sales Are Fading and It's Crushing GameStop |first=Emily |last=Bary |date=January 13, 2017 |work=[[Barron's (newspaper)|Barron's]] | url-access=subscription |archive-date=January 13, 2017 |archive-url=https://web.archive.org/web/20170113194953/http://www.barrons.com/articles/videogame-sales-are-fading-and-its-crushing-gamestop-1484329331|url-status=live}}</ref> On February 28, 2017, shares dropped an additional 8% following Microsoft's announcement of its [[Xbox Game Pass]] service.<ref>{{cite news |url=https://www.businessinsider.com/microsoft-xbox-game-pass-versus-gamestop-2017-2 |title=GameStop shares sank 8 percent on Tuesday after Microsoft unveiled a new attack on the used game business |first=Matt| last=Weinberger| date=February 28, 2017 |work=[[Business Insider]] |archive-date=March 3, 2017 |archive-url=https://web.archive.org/web/20170303050206/http://www.businessinsider.com/microsoft-xbox-game-pass-versus-gamestop-2017-2|url-status=live}}</ref> Following these reports, GameStop announced it would close over 150 stores in 2017 and expand its non-gaming business.<ref>{{cite news |url=https://www.wsj.com/articles/gamestop-closing-at-least-150-stores-amid-sales-declines-1490305703| first=Maria| last=Armental| work=[[The Wall Street Journal]] |date=March 23, 2017 | url-access=subscription |title=GameStop Closing At Least 150 Stores Amid Sales Decline|archive-date=March 23, 2017 |archive-url=https://web.archive.org/web/20170323231345/https://www.wsj.com/articles/gamestop-closing-at-least-150-stores-amid-sales-declines-1490305703| url-status=live}}</ref> On the same day, however, GameStop said it planned to open 65 new Technology Brand stores and 35 Collectibles stores due to a 44% and 28% increase in sales, respectively.<ref>{{Cite news |url=https://www.usatoday.com/story/tech/news/2017/03/24/gamestop-video-game-stores/99573598/ |title=GameStop closing 150 stores as it shifts business focus |first=Brett|last=Molina |work=[[USA TODAY]] |date=March 24, 2017 |archive-date=June 2, 2020|archive-url=https://web.archive.org/web/20200602095145/https://www.usatoday.com/story/tech/news/2017/03/24/gamestop-video-game-stores/99573598/|url-status=live}}</ref> GameStop's total revenue fell 7.6% to $3.06 billion in the quarter ended February 2, 2018.<ref name=reports2018>{{cite press release | url=https://www.globenewswire.com/news-release/2019/04/02/1795746/0/en/GameStop-Reports-Fourth-Quarter-and-Fiscal-2018-Results-and-Provides-Fiscal-2019-Outlook.html | title=GameStop Reports Fourth Quarter and Fiscal 2018 Results and Provides Fiscal 2019 Outlook | publisher=[[GlobeNewswire]] | date=April 2, 2019}}</ref>

''[[Business Insider]]'' described GameStop's investment in Spring Mobile as a failure, with estimates that the company spent $1.5 billion on acquisitions on Spring Mobile and store locations, but only gained $700 million from the sale of Spring Mobile to Prime Communications in 2018, leaving them $800 million in debt.<ref name=":3" />

In late June 2018, GameStop confirmed talks of a possible sale, with [[Sycamore Partners]], a [[private equity firm]], the most likely buyer,<ref>{{cite news |url=https://www.bizjournals.com/newyork/news/2018/06/19/gamestop-is-for-sale-and-sycamore-is-a-likely.html | title=GameStop is for sale and Sycamore is a likely buyer |first=Anthony |last=Noto | work=[[American City Business Journals]] |date=June 19, 2018 |archive-date=January 11, 2019 |archive-url=https://web.archive.org/web/20190111000305/https://www.bizjournals.com/newyork/news/2018/06/19/gamestop-is-for-sale-and-sycamore-is-a-likely.html |url-status=live}}</ref><ref>{{cite news |url=https://www.msn.com/en-gb/news/offbeat/gamestop-confirms-buyout-talks-as-downloads-take-their-toll/ar-AAyRAXQ|title=GameStop confirms buyout talks as downloads take their toll |first=Jon |last=Fingas | work=[[Engadget]] | via=[[MSN]]|date=June 19, 2018 |archive-date=June 22, 2018 |archive-url=https://web.archive.org/web/20180622164808/https://www.msn.com/en-gb/news/offbeat/gamestop-confirms-buyout-talks-as-downloads-take-their-toll/ar-AAyRAXQ |url-status=live}}</ref> with a target deal expected by February 2019.<ref>{{cite news |url=https://www.thestreet.com/investing/gamestop-climbs-on-report-of-private-equity-firms-are-bidding-for-the-videogame-retailer-14824880 |title=GameStop Climbs on Report P/E Firms Are Bidding for the Videogame Retailer |first=Rob |last=Lenihan |date=January 4, 2019 |website=[[TheStreet.com]] |archive-date=January 6, 2019|archive-url=https://web.archive.org/web/20190106010443/https://www.thestreet.com/investing/gamestop-climbs-on-report-of-private-equity-firms-are-bidding-for-the-videogame-retailer-14824880|url-status=live}}</ref> However, on January 29, 2019, GameStop reported it had stopped looking for a buyer for the company, due to a "lack of available financing on terms that would be commercially acceptable to a prospective acquirer", and was looking for other actions to help re-establish its financial ground.<ref>{{cite web | url=https://variety.com/2019/gaming/news/gamestop-just-gave-up-on-trying-to-sell-company-1203122042/ | title=GameStop Just Gave Up On Trying to Sell Company | first=Brian | last=Crecente | work=[[Variety (magazine)|Variety]] | date=January 29, 2019 | archive-date=January 29, 2019 | archive-url=https://web.archive.org/web/20190129192331/https://variety.com/2019/gaming/news/gamestop-just-gave-up-on-trying-to-sell-company-1203122042/ | url-status=live }}</ref> Shares dropped 27% to a 14-year low immediately following this announcement.<ref>{{cite news |url=https://markets.businessinsider.com/news/stocks/gamestop-stocks-crashes-as-board-terminates-plans-to-sell-2019-1-1027906143 |title=GameStop crashes to 14-year low after board terminates plans to sell the company (GME)| first=Jonathan |last=Garber | work=[[Business Insider]] |date=January 29, 2019 |archive-date=January 30, 2019 |archive-url=https://web.archive.org/web/20190130164639/https://markets.businessinsider.com/news/stocks/gamestop-stocks-crashes-as-board-terminates-plans-to-sell-2019-1-1027906143 |url-status=live}}</ref><ref>{{Cite web |last=Sun |first=Leo |date=2019-01-31 |title=3 Reasons GameStop Failed to Attract Buyers |url=https://www.fool.com/investing/2019/01/31/3-reasons-gamestop-failed-to-attract-buyers.aspx |access-date=2025-05-23 |website=The Motley Fool |language=en}}</ref>

The financial results for 2018 showed the biggest loss in GameStop company history.<ref>{{cite web |last1=Sinclair |first1=Brendan |title=GameStop posts $673m full-year loss |url=https://www.gamesindustry.biz/articles/2019-04-02-gamestop-posts-usd673-million-full-year-loss |website=GameIndustry.biz |access-date=April 21, 2019 |date=April 21, 2019 |archive-date=April 21, 2019 |archive-url=https://web.archive.org/web/20190421085912/https://www.gamesindustry.biz/articles/2019-04-02-gamestop-posts-usd673-million-full-year-loss |url-status=live }}</ref> For the 52-week period ending on February 2, 2019, GameStop reported a record-breaking [[net loss]] of $673 million.<ref name=reports2018/> This was a change from the net profit of $34.7 million in the previous year.<ref name=reports2018/> The net sales for fiscal year 2018 were down 3% year-on-year to $8.29 billion.<ref>{{cite news | url=https://www.destructoid.com/stories/gamestop-is-losing-so-much-money-548758.phtml | title=GameStop is losing so much money| last=Makedonski | first=Brett | website=[[Destructoid]] |date=April 2, 2019}}</ref> The company also eliminated its [[dividend]].<ref>{{Cite news | url=https://www.ibtimes.com/gamestop-stock-drops-30-video-game-shop-eliminate-dividends-2797842 | title=GameStop Stock Drops 30% As Video Game Shop Eliminate Dividends | first=Arthur | last=Villasanta | work=[[International Business Times]] | date=June 4, 2019}}</ref><ref>{{Cite news |last=Thomas |first=Patrick |date=2019-06-04 |title=GameStop Eliminates Dividend, as Sales Fall |url=https://www.wsj.com/articles/gamestop-eliminates-dividend-as-sales-fall-11559683871 |access-date=2025-05-23 |work=Wall Street Journal |language=en-US |issn=0099-9660}}</ref>

In December 2021, GameStop posted a larger-than-expected loss in the fiscal third quarter, and investors are waiting to hear how the ailing company plans to restructure its operations and entice gamers back. In extended trade, shares plummeted.<ref>{{Cite web |last=Schuetz |first=Molly |date=2021-12-08 |title=GameStop Reports Wider Loss as Investors Await News on Strategy - BNN Bloomberg |url=https://www.bnnbloomberg.ca/gamestop-reports-wider-loss-as-investors-await-news-on-strategy-1.1693081 |access-date=2021-12-08 |website=BNN}}</ref>

In March 2024, GameStop announced net income of $6.7 million for fiscal year 2023.