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Video game retailer GameStop has seen a major decline in revenue in the fourth quarter and say they\u2019ve had to cut an unspecified number of jobs as a result, report Reuters.<\/a><\/p>\n As of February 3, the company had around 8,000 full-time salaried and hourly associates and between 13,000 and 18,000 part-time, hourly associates located worldwide. The amount of jobs cut isn\u2019t yet known.<\/p>\n The fourth quarter revenue was reported<\/a> as being $1.79 billion which is lower than last year\u2019s $2.23 billion. Share prices have fallen by 16% in extended trade too.<\/p>\n Other cost-reduction measures are said to include an exit from operations in Ireland, Switzerland, and Austria.<\/p>\n A Wedbush Securities analyst, named Michael Pachter, gives Reuters a possible reason for the decline: \u201cAn increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately\u2026<\/p>\n \u201cI suspect that they will keep trimming costs to generate breakeven or better, but it is inevitable that their sales will decline<\/a> to an unsustainable level.\u201d<\/p>\n This news comes in sharp contrast to 2021 which was a wild year for the company as it became one of the most popular meme stocks in the world.<\/p>\n On the back of this, the GameStop NFT marketplace<\/a> was launched in 2022 but this was wound down earlier this year. The company cites \u201cthe continuing regulatory uncertainty of the crypto space\u201d as the reason behind this.<\/p>\n People have taken to Reddit to share their thoughts about the Texas-based company from the sidelines.<\/p>\n One user<\/a> suggests a shake-up is needed: \u201cAs a business, I still think GameStop could thrive, especially here in Canada, but not with the CEO they have now.<\/p>\n \u201cToo many terrible decisions are being made. Video games are being overrun by Funko Pop stock.\u201d<\/p>\n Other Redditors, like \u2018AuthenticatedUser,\u2019 suggest the format of the shop is causing the loss: \u201cIt\u2019s because they don\u2019t stock anything. It\u2019s their policy now to not stock anything aside from pre-orders and AAA games\u2026\u201d<\/p>\n Featured image: Image by Sergei Tokmakov on Pixabay<\/a><\/em><\/strong><\/p>\n<\/p><\/div>\nGamers reactions to the GameStop market<\/b><\/h2>\n