After announcing their Q1 financial results yesterday, GameStop’s share price decreased dramatically. It fell to $5.13/share, which is a 36% drop from what the price was yesterday. This marks the lowest their stock has been in the past 16 years.
The report yesterday stated that their overall software and hardware sales had fallen by 13%, continuing a declining trend. Bloomberg reports that with this new share price, GameStop has lost 95% of its market value since 2007. In 2007, the company’s value peaked at $10 billion USD.
This is just another indication that the gaming industry is shifting into a digital era causing brick and mortar businesses like GameStop to feel the sting of that transition. The company stated that they are working on new strategies to help carry them forward into the future. What those strategies are remains to be seen.