American video game retailing company, GameStop, is shutting down all of its stores in Puerto Rico amid the island's on-going economic crisis. A total of 35 stores will be closed at the end of March with at least 400 employees losing their jobs.

"Given the ongoing business challenges and increased governmental restraints we have experienced in Puerto Rico, GameStop has made the business decision to close all of its video game stores and operations located on the island. As a result, GameStop will be exiting the Puerto Rican market by the end of March 2016. Until that time, we will continue to conduct normal business operations," GameStop's Public Relations Director, Joel Mooring told GameSpot.

Back in November 2015, GameStop revealed the company's financial results for the third quarter with reported earnings falling by 3.6 percent to $2 billion, while a profit of 55.9 million was made compared to $56.4 million during the same three-month period in 2014. New hardware and software sales also dropped down to 20.4 and 9.3 percent, respectively.

The video game retailer attributed financial results to the release of games like Destiny and Super Smash Bros. It's not all bad news for GameStop because pre-owned sales were up 0.6 percent while digitals sales rose to 8.7 percent and $228.6 million.

"Looking ahead to the fourth quarter, a solid slate of new video games, coupled with contributions from our diversified AT&T, Apple, and ThinkGeek businesses and our in-store collectibles offerings are expected to drive our fourth quarter results," GameStop CEO J. Paul Raines said in a statement via the Business Wire.

GameSpot added on their report that a better idea about how GameStop performed in the final quarter and during the holiday season will be available later in this year. It is noted that it is an important period for the company because 60 percent of its yearly sales happens in that season based on the company's history.

According to Attack of the Fanboy, video game shops are challenged right now because of the popularity of digital gaming. Many gamers that used to visit shops tend to just download their games digitally, but there is still a place for physical stores because people can't trade and sell off digital games, yet.

As for Puerto Rico, the US territory has an ongoing financial crisis due to more than $70 billion debt owed by the government of Puerto Rico with a debt-to-GDP ratio of about 68 percent, per CNBC. The on-going crisis also threatens to significantly reduce the island's gasoline and electricity supply.