GameStop posts massive loss as pre-owned game sales plummet | Ars Technica

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Jul
7

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But more than the amount, the reason behind the new loss could be cause for long-term concern at the retailer's thousands of worldwide storefronts. One of the world's biggest video game retailers just announced its worst annual performance in decades, raising renewed questions about the health of the physical video game market as downloadable games continue their ascent.

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GameStop has always relied on the high margins of buying low and selling high on used game discs to buoy an otherwise low-margin business.

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