Summary
- GameStop is discreetly shutting down outlets in the US, catching shoppers and staff off guard with frustration.
- The company's downturn is clear, with its brick-and-mortar sites reduced by nearly a third.
- Shoppers and workers are posting about these shutdowns on social networks, signaling tough times ahead for the retailer.
GameStop seems to be winding down numerous outlets throughout the United States, frequently without much notice, leaving dedicated fans stunned and upset. Although the company hasn't issued any formal statement on rising closures, shoppers and staff have been vocal online since early this year about spots that have shut down or are about to.
As the biggest brick-and-mortar seller of new and pre-owned video games globally, GameStop traces its roots over 44 years to its days as Babbage's. The initial store launched in a Dallas suburb in August 1980, funded by former presidential hopeful Ross Perot, and at its height in 2015, it boasted over 6,000 sites worldwide with around $9 billion in yearly revenue. Yet over the past nine years, figures have plummeted as gaming shifted largely to digital, and by February 2024, its store count had dropped by almost one-third, including about 3,000 in the US, per data from ScrapeHero.
3After a December 2024 filing with the Securities and Exchange Commission hinted at more upcoming closures, GameStop patrons and employees have been highlighting shuttered sites on platforms like Twitter and Reddit. For instance, Twitter user @one-big-boss mourned the loss of his go-to spot, a reliable place for affordable games and systems. He noted it still drew crowds and appeared thriving, seeing its closure as an ominous indicator for quieter branches. Several staff members have voiced concerns too, with one in Canada decrying unrealistic targets set by executives evaluating which locations to retain.
GameStop Customers Keep Seeing Stores Close
These latest reports of GameStop shutdowns continue a downward pattern for the struggling gaming chain. A Reuters analysis from March 2024 forecasted grim prospects, revealing 287 stores closed in the previous year after fourth-quarter 2023 results showed revenue falling nearly 20 percent, or about $432 million, from the year before.
In recent years, various efforts from within and beyond the company aimed to revive GameStop. As buyers increasingly turned to online purchases, it explored alternatives like expanding into gaming merchandise and clothing, or venturing into areas such as phone resales and card authentication. The firm got a boost in 2021 from Reddit's retail investors, whose story lives on in productions like the Netflix film Eat the Rich: The GameStop Saga and the movie Dumb Money.
