GameStop's stock faced a challenging week, with conditions worsening on Friday as negative economic reports raised concerns about a potential recession in the United States. This development coincided with the video game retailer's decision to close a significant industry brand.
On Friday, the 33-year-old gaming magazine *Game Informer* announced its immediate shutdown, ending both its print and online publications. This decision resulted in layoffs for the entire team, including writers, editors, and other staff members.
A statement on the magazine's Twitter (also known as X) read, "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. 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* outlasted most of its print competitors due to its unique relationship with the retailer, offering the magazine to customers as part of a membership plan that included store discounts and other benefits.
While some competing video game publications have discontinued their print editions but continued online, *Game Informer* is closing entirely. Its website now only displays a placeholder, making its past content inaccessible to readers.
Decrypt sought a comment from GameStop regarding the closure but has not yet received a response.
This move is part of GameStop's ongoing efforts to adapt to the evolving video game industry, which is gradually shifting from physical media to digital formats and devices that can play games without being dedicated gaming consoles or handhelds.
GameStop has struggled with this transition, experiencing six consecutive years of operating losses as it tried to expand its business into smartphone trade-ins and its now-closed NFT venture.
The one positive note in recent years was the stock price surge driven by the "meme stock" phenomenon, particularly in 2021. The stock rose again in May and June when online personality Keith Gill (aka Roaring Kitty) returned after a three-year hiatus, but GME has since struggled to maintain those gains.
GameStop's stock price has dropped 13% over the past week, closing Monday at just over $21. This decline includes a 3% dip on Friday, alongside broader market losses, reportedly triggered by a weak U.S. jobs report that some analysts believe signals an impending recession.
The retailer's stock price rose above $28 per share in mid-July but has since fallen back to levels not seen since late May.
