GameStop Lays Off Over 100 People, Including Half of Game Informer Staff
Yesterday, as part of a GameStop restructuring plan, our parent company eliminated the positions of about 120 employees across its various offices. We lost seven members of our team – our cohorts, compatriots, and friends. They shaped us and made us who we are today, just like every member of the Game Informer team who passes through this company.
Welp. That sucks. I haven't visited a GameStop in years. Probably won't visit one ever again to be honest. That's not out of spite either. Hell, I barely play video games these days at all. Let alone buy used games or consoles. I'll tell you what definitely do — read Game Informer online.
I have a deep suspicion that these layoffs (or any others that follow in the coming 90 days for that matter), have to do the damned inverted yield curve:
So for the curve to invert implies that investors are forecasting that something unusual will happen. Something that will push future interest rates down low enough to justify long-term yields being low despite the risks. Something like a future collapse in private sector investment demand that makes government borrowing cheap. Or something like a series of Federal Reserve moves to try to reduce interest rates and spur more economic activity.
In other words, a future recession.
And, indeed, if you look at the historical track record, every time the two-year/10-year inversion has happened, a recession has followed.
Sigh. We'll know if we're in a recession in 6 months. The winds of change are pretty good that Trump will astroturf the U.S. economy in an ego-driven, exploitative ego-driven (and as a reminder, 100% totally avoidable) trade-war with China.
Regardless, GameStop is shitty business, even if Game Informer is a great online and print publication. It's umbilical cord to GameStop is financial poison. The parent company that manages the magazine is just absolutely terrible. The level of incompetence mismanagement is gargantuan. They closed hundreds of stores in 2012. GameStop was caught intentionally deceiving customers in 2017, and the company has been trying to sell itself to private equity firms for pretty much half a decade. Perhaps, instead of peddling snake oil — they should hire back the seven game journalists, and should spin off the publication wholesale to someone who cares. Microsoft, The Verge or shit, even Rooster Teeth are all wealthy contenders happy to expand their media empire. Literally anyone would benefit from the editorial prowess Game Informer brings to the gaming beat.
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