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end of the game for Micromania?

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The situation of the physical video game sales giant continues to worsen and could well have impacts in France.

GameStop’s financial results are far from rosy. Micromania’s parent company cannot recover in an increasingly complex economic context. Players are changing their habits, and digital game purchases are starting to gain ground at historical retailers. The company has been looking for several years now to find alternatives to compensate for losses.

Despite a more or less effective model based on three main axes, namely video games, derivative products and second-hand sales, other fads have come to hinder the development of the group. In the last news, CEO Matt Furlong wanted to get into the cryptocurrency and NFT market. Except that this strange dream will not be able to become a reality while the company’s receipts are still not sufficiently satisfactory.

Millions of dollars in a few months

The last three months have not spared GameStop, which has lost no less than $94.7 million. In 2012, the group totaled $1.297 billion in revenue during the same period, compared to $1.186 billion this year, a difference of $111 million. However, the losses for this quarter of the financial year are less obvious this year (94.7 million against 105.4 last year).

Console and accessory sales remain GameStop’s goose with 52.8% of revenue ($627 million). We then find games at 29.7% ($352.1 million) and derivative products at 17.5% ($207.3 million).

And Micromania in all this?

In the United States, many employees have already lost their jobs in the group’s offices. The CEO had communicated these dismissals himself, explaining that many people had left of their own free will. But while Matt Furlong tries to limit the damage to reassure investors, the situation in France is far from happy.

Many stores are already beginning to prepare for their closure, pushing the Micromania brand outside of our shopping areas and other city centers. It is then possible to envisage a sad future where Micromania no longer exists, at least not in the form in which we have always known it. Indeed, the closure of stores does not imply the end of e-commerce operations, which could be a safer track to pursue.

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