GameStop, the prominent video game retailer, is reportedly shutting down hundreds of its stores across the United States. Reports circulating on social media, highlighted by Polygon, indicate numerous store closures nationwide. The ‘GS Closing blog’ currently tracks 390 confirmed closures, with an additional 10 unconfirmed.
Furthermore, RNZ reports suggest that GameStop’s New Zealand subsidiary, EB Games, is also facing potential closure. EB Games managing director Shane Stockwell reportedly informed staff via email that this proposal is not yet final and a decision will follow a full consultation process with affected team members. According to GameStop’s 10-K annual report for the financial year ending February 2025, 38 stores operate in New Zealand.
The company’s 10-K filing also revealed 590 US store closures during the 2024 financial year, with expectations of “closing a significant number of additional stores in fiscal 2025.”
These operational adjustments extend beyond the United States and New Zealand. GameStop has ceased operations in Ireland, Switzerland, Austria, and Germany in recent years. Its Italian subsidiary has been sold, and the company is actively seeking buyers for its French and Canadian businesses.
Despite these significant business cutbacks, GameStop has unveiled a new long-term performance award for CEO Ryan Cohen, valued at $35 billion. To achieve this award, the CEO must elevate GameStop’s market capitalization to $100 billion. The company’s current market value stands at $9.52 billion. Even during the peak of the r/wallstreetbets-driven short squeeze in January 2021, when shares hit $483.00 (equivalent to $81.25 today after stock splits), the market cap reached $33.7 billion.
Between the 2023 and 2024 financial years, GameStop experienced a 27.5% decrease in net sales, totaling $3.8 billion. This included a 29.9% drop in hardware and accessories sales, a 33.9% decline in software sales, and a 4.8% reduction in collectibles sales.
