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article imageGameStop plans to close 120 stores

By Stan Rezaee     Apr 26, 2014 in Entertainment
During the GameStop’s Investor Day 2014, the company announced its plans to close 120 stores while focusing more on the mobile device market.
In a plan dubbed "GameSpot 3.0" by CEO Paul Raines, the company is planning to close between 120-130 stores in the 2014 fiscal year while expanding its Simply Mac and Spring Mobile stores. The goal is to open around 200 Spring Mobile locations along with 25 Simply Mac stores.
Raines has described the move as, "A new phase of the company's lifespan that will see it aggressively expand its footprint into gaming-adjacent tech fields."
Brendan Sinclair of Game Industry International noted that GameSpot plans to follow the same strategy used by other companies when they expanded into other markets and diversified their business. Williams-Sonoma and VF Corporation were the examples used during the conference.
Andrew Marder of The Motley Fool compared the plan to Best Buy's strategy of diversifying while also noting that, "When the last generation of consoles was on its last legs, GameStop suffered as business dried up with gamers waiting for the next generation to hit the shelves. Hopefully, an increase in mobile and Apple product sales will help it weather the next storm that rolls in, whatever it might be."
However not everyone welcomed the plan as GameStops stock prices started to tumble the day after the announcement. Sam Mattera described the plan as following in Blockbuster's footsteps in a separate article for the The Motley Fool.
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