GameStop will close up to 200 underperforming stores around the world

GameStop's challenging year continues as the company announces plans to close between 180 and 200 underperforming stores by the end of the year. In a recent earnings announcement, GameStop CFO Jim Bell announced further losses for the distressed video game retailer. Sales declined 14.3% from one year to the next and the company recorded a net loss of $ 415 million in its second quarter earnings report.

As part of GameStop's turnaround plan, the company will close up to 200 stores around the world. Bell noted that 95% of the company's 5,700 stores worldwide are profitable and that underperformance is not the only measure to consider in determining store closures.

The closure of stores would be the last sign of trouble at the video game retailer. After failing to find a buyer earlier this year, GameStop recently fired more than 120 employees of the company, including staff members of its Game Informer publication. GameStop confirmed layoffs at IGN last month. The company has also laid off more than 50 district district officers and consolidated its regional offices.

While GameStop employs to transform its stores into "experiences" that can host live events and esport events, the company continues to suffer from changes in the video game retail market. GameStop recorded losses of nearly half a billion dollars last year and Bell expects "sales from one fiscal year to the next to be in down over the next three to four quarters, reflecting the end of the console]cycle."

In addition, Bell claims that there is no video game release in 2019 comparable to that of Red Dead Redemption 2, which was the store's best-selling volume title. On the merits, GameStop anticipates new financial turbulence, at least until the release of new consoles in late 2020.

Matt Kim is a journalist for IGN. You can reach him on Twitter.