Shane Kim, former Microsoft executive, has become the interim CEO of GameStop. The retailer is continuing to look for a permanent replacement while Kim takes the reins for the time being.
Kim is best known for the nineteen years he spent with Microsoft across various roles within the company, including Corporate vice President for Interactive Entertainment Business, and General Manager of Microsoft. Kim was even pivotal in the launches of both the original Xbox and the Xbox 360. He has been on the board of directors for GameStop since 2011, and brings a wealth of knowledge and experience in the industry to the table in this temporary role.
Since November last year, when the company’s long-term Chief J.Paul Raines had to leave for medical reasons, passing away soon after, Kim is the fourth CEO GameStop has had. Dan DeMatteo, Executive Chairman, took over on a similarly temporary basis to Kim directly after the departure, and was replaced by Mike Mauler in February this year in a permanent position. However, Mauler left after only three months due to personal reasons, which pulled DeMatteo back into the role once again. Mauler’s departure prompted a strategic review from investors into GameStop.
DeMatteo told press that he believes Kim will bring additional focus, passion, and energy to the role and GameStop as a whole during this transitional period between CEOs. The experience he brings to the table cannot be underestimated and will only serve to build the company up, positioning each business within GameStop in order to maximise their long-term viability.
GameStop also announced that Rob Lloyd has been promoted to Chief Operating Officer and Chief Financial Officer.
In March this year GameStop published their financial results for Q1 2018, which showed a significant decrease in year-on-year net sales. This was attributed to the launch of the Nintendo Switch last year providing a huge boost to figures over the same quarter in 2017. Global net sales fell to $1.93 billion, a drop of 5.5 percent, leading to $657 million gross profit. Of this drop in sales was a 10.3 percent decrease in hardware sales caused by the Nintendo Switch.
GameStop have reassured investors that the sales decrease this year is still only due to the boost seen in 2017 from the Nintendo Switch. Over the current financial year they predict a total drop in total sales of between 2 and 6 percent. They expect that most of their revenue this year will come from the latter half of it, when big AAA titles are set to launch.