GameStop is always encouraging trade-ins, and it looks like that mindset goes all the way up the corporate ladder. The company's CEO resigned after just three months in the role, and his replacement has been announced. But in true GameStop fashion, the trade-ins keep coming. The new CEO is only serving temporarily while the Board Of Directors searches for a permanent replacement.
In a press release, GameStop announces that current CEO Michael K. Mauler has resigned for "personal reasons." Replacing him will be Daniel A. DeMatteo, a co-founder of the company.
DeMatteo's appointment, however, is only temporary. He is serving as interim CEO until the Board Of Directors, of which he is the executive chairman, can find a suitable person to take over in full. DeMatteo has done this before, Polygon reports, back in 2017. The CEO at the time had to leave suddenly due to health problems, and DeMatteo took over until Mauler was brought on.
Mauler only lasted three months as CEO before resigning. The "personal reasons" is all that was said about the decision, with the press release instead choosing to focus on DeMatteo and the stability he brings to the company. "In the past," the release says, "Mr. DeMatteo has served as the company’s chief executive officer and in a variety of board and executive roles since November 1996."
As if to emphasize this point, DeMatteo himself recalled his history with the company by saying "Given my tenure and familiarity with the company and our associates, it’s a natural step for me to assume this role and guide the business at this time while the board searches for a permanent CEO."
Unfortunately, industry insiders aren't as quick to gloss over the fact that Mauler left so soon after taking the job. In a statement to the Wall Street Journal, analyst Michael Pachter pointed out that "investors like stability and continuity and GameStop is anything but."
Only time will tell how GameStop's investors react to the change. As for consumers, the switch probably won't have much of an impact. GameStop will continue to operate as it always does. DeMatteo is unlikely to try and shake things up. Just like in GameStop stores, trading in doesn't necessarily mean you're getting a good deal.