GameStop will close 150 stores

People didn't buy consoles and blockbuster video game titles as much.
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GameStop will shut down 120 of its locations after a rough sales year.

The company, which operates more than 6,600 stores in the world, said in its sales report Thursday it expects to close 2-3 percent of its locations.

That amounts to at least 150 stores, USA Today says.

Which locations might be affected wasn't announced. GameStop has about 40 stores in Minnesota.

So what happened? There were "weak" sales of big-name video games (also referred to as AAA titles), for one. And other retailers had "aggressive" promotions of consoles during the Thanksgiving-Black Friday shopping rush, which ate into GameStop's sales.

Overall, hardware sales (that's consoles) were down 29.1 percent at the retailer, and software sales (games) were down 1.3 percent. More people bought used games than new games – though pre-owned sales still fell 6.7 percent.

There might be some signs of hope though. As relayed by The Consumerist, GameStop's CEO said on a conference call the Nintendo Switch has sold well, and given a "dramatic lift" to the number of customers coming into stores.

But digital could still be a threat to the physical GameStop stores. A report from the Entertainment Software Association found that, in 2014, digital game sales were more common than the sale of physical discs for the first time ever – at 52 percent to 48 percent.

GameStop will, however, be opening some non-game stores this year – 35 "Collectibles" stores, and 65 "Technology" brand stores (like Simply Mac, Spring Mobile and Cricket Wireless).

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