GameStop, the once-prominent video game retailer, is slated to close a significant number of its stores as it confronts ongoing challenges in the digital gaming landscape. Following the closure of 590 locations in fiscal 2024, the company plans to shutter more stores by the end of its 2025 fiscal year, which concludes in January 2026. However, GameStop has not disclosed the specific number or locations of these additional closures.
In recent weeks, social media users have shared images of closed GameStop stores across various states, with some linking to blogs tracking these developments. The company has revised its investment strategy, allowing for potential investments in Bitcoin, aimed at maintaining liquidity and optimizing investment returns amidst persistent financial difficulties attributed to the rise of digital game downloads and intensified competition from e-commerce platforms and large retail chains.
The majority of GameStop’s outlets are located in malls, areas that have suffered from a notable decrease in foot traffic. In its latest earnings report, the company disclosed a revenue decline of $39.3 million year-over-year, signaling ongoing financial struggles. Once a staple of the mall experience, GameStop gained notoriety as a “meme stock” in 2021 before its decline.
In January, to boost growth, GameStop granted CEO Ryan Cohen a performance-based stock option award, contingent on achieving a $100 billion market capitalization, a stark contrast to its current valuation of around $9 billion. The company’s stock has dropped more than 34% over the past year, reflecting a challenging marketplace and shifting consumer behaviors.
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