GameStop’s stock has weathered a rough week, and things only got worse on Friday as the broader stock market felt the pain from a series of rough economic reports that suggested the United States might be headed for recession. And it came on the same day as the video game retailer killed off an iconic industry brand.
On Friday, the long-running video game industry magazine Game Informer announced that it had immediately shuttered after 33 years, with both the print and web versions of the publication closing. The entire staff of writers, editors, and other employees were laid off as a result.
“From the early days of pixelated adventures to today’s immersive virtual realms, we’ve been honored to share this incredible journey with you, our loyal readers,” reads a statement posted to the magazine’s Twitter (aka X) account. “While our presses may stop, the passion for gaming that we’ve cultivated together will continue to live on.”
Owned entirely by GameStop, Game Informer had outlasted most of its print competitors in part due to its unique relationship with the video game retailer, which offered the magazine to customers as part of a membership plan that included store discounts and other perks.
But while some rival video game publications have axed their print editions but continued to produce online coverage in one way or another, Game Informer is closing up shop entirely. Its website now displays only a placeholder, with its library of coverage now inaccessible to readers.
Decrypt reached out to GameStop for comment on the closure, but did not immediately receive a response.
The move is the latest attempt by the storied retailer to evolve with the ever-changing video game industry, which has gradually been shifting from a model of physical media into a world with more purely digital software—and a slew of devices that can capably play games, even if they’re not dedicated gaming consoles or handhelds.
GameStop has broadly struggled with that transition, weathering six straight years of total operating income losses as the firm attempts to expand its business with its entry into smartphone trade-ins and its now-shuttered NFT business.
The one bright spot in recent years has been stock price gains propelled by investor enthusiasm around the “meme stock” saga, most notably in 2021. The stock jumped again in May and June as online personality Keith Gill (aka Roaring Kitty) returned after a three-year hiatus, but GME has struggled to maintain those gains in recent weeks.
GameStop’s stock price is now down 13% over the last week to a closing price Monday of just over $21.00. That plunge includes a 3% daily dip on Friday alongside broader market bleeding, which was apparently spurred by a rough U.S. jobs report that some analysts say points to a coming recession.
The retailer’s stock price was on its way up in mid-July, briefly rising above $28 per share—but has since shed those recent gains, falling to a low not seen since late May.
Edited by Ryan Ozawa.
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Source: https://decrypt.co/242982/gamestop-kills-gaming-magazine-stock-price-sinks
