Many people who play video games know all about GameStop. This company was founded in 1984, becoming one of the main ways for people to purchase and sell used video games. For many years, GameStop was a major success. One reason for this success was because there weren’t many retailers selling or buying back used video games. That being said, it appears that this video game retailer is facing a difficult future as another CEO has resigned from GameStop.
In February 2018, Michael Mauler was named the CEO of GameStop. However, his tenure would not last long as he has recently announced his resignation with the company. GameSpot reports that Michael Mauler’s resignation was taking place due to “personal reasons.” As of right now, Daniel DeMatteo will take on the role of CEO. However, this certainly wouldn’t be DeMatteo’s first time serving as CEO of GameStop. This company found themselves in a similar situation in 2017. It was during this time that GameStop was facing the issue of another CEO leaving the company. In 2017, CEO J. Paul Raines had to leave his position with the company after dealing with health issues. For the foreseeable future, it appears that DeMatteo will be serving as CEO of GameStop until a suitable replacement is found.
There are several reasons that experts speculate could behind the ever-changing CEO problem GameStop is having. One reason could be the continuing losses retail businesses are facing. In fact, recent GameStop stock was selling for $12.55. This price is far less than what GameStop stock was selling for during this time in 2007 or 2013, notably good years for the company. GameStop has also continued to face backlash by video game companies. People purchasing pre-owned games give all profits to GameStop, not video game companies. In addition, video game streaming services have also tried to cut into GameStop’s market.
To summarize, GameStop is now on the hunt for another CEO. Once again, Daniel DeMatteo is taking over as CEO until a proper replacement is found. This is another notable blow to the company, especially after the recent price drop of GameStop stock. DeMatteo is reportedly optimistic about once again serving as interim CEO until a decision is made about who will take over this position.