<P> The market for physical game media has been in a state of decline since online services such as Xbox Live, PlayStation Network, and Steam has taken foothold, and GameStop, whose business was long rooted in new and pre-owned software, has begun feeling the effects of the changing market . In 2017, GameStop reported a 16.4% drop in sales for the 2016 holiday season, but expressed optimism in its non-physical gaming businesses . Reasons cited for the decline in sales included industry weakness, promotional pricing pressure, and lower in - store traffic . </P> <P> Shares of GameStop stock fell 16% throughout 2016 . On February 28, 2017, shares dropped an additional 8% following Microsoft's announcement of its Xbox Game Pass service . Following these reports, GameStop announced it would close over 150 stores in 2017 and expand its nongaming business . On the same day, however, GameStop said it planned to open 65 new Technology Brand stores and 35 Collectibles stores due to a 44% and 28% increase in sales, respectively . GameStop expects a continued drop in operating income between 3% and 10% in 2017 . </P> <P> Raines notified GameStop of his resignation on January 31, 2018 . Raines had been on medical leave since November 2017 . He had "a medical reoccurrence" of a brain tumor . DeMatteo, GameStop's executive chairman stepped in as interim chief executive officer . On February 6, the company announced Michael K. Mauler as the new CEO and new member of the board of directors . </P> <P> GameStop is divided into two operating segments: Video Game Brands and Technology Brands . The Technology Brands was created during the fourth quarter of 2013, and houses the companies Simply Mac, Spring Mobile, and Cricket Wireless business . As of April 2014, the Technology Brands segment included 218 retail outlets . GameStop's Video Game Brands includes the company's other businesses such as video game and consumer electronics retail shops; Kongregate, a digital video game distribution site; and buymytronics.com, a consumer electronics marketplace . Pre-owned and value video games accounted for 47% of GameStop's gross revenue for the fiscal year ending February 2014 . </P>

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