GameStop is getting ready for another round of mass store closures in the US, according to sources at the video game retailer. More than 400 GameStop stores are set to close by the end of this year or sometime next year. The cuts, signaled by a long-running blog that records store closures and brought to light by Polygon, are the latest sign of how aggressively the retailer is reducing costs as digital downloads and direct-to-consumer outlets chip away at demand for physical game sales.
What We Know About the Closures Across the United States
The tally of closures is being compiled from employee reports, as well as changes to GameStop’s own store locator updates, producing a state-by-state picture of the retreat. As of the most recent update, the tracker identifies 471 affected stores across at least 40 states, which argues against a targeted consolidation in select markets and for wholesale scaling back.
The pattern fits with recent restructuring moves as the company downsizes underperforming square footage and tightens labor and operating expenses. While the company has not published a detailed public list, the pattern is consistent with recent restructuring actions to reduce underperforming store square footage and adjust labor and operating expenses.
Why GameStop Is Closing So Many Stores amid Digital Sales Shift
Digital has overtaken discs. Console manufacturers have been slowly nudging players to online storefronts, and more games have begun to launch with digital-first strategies from publishers. Sony’s latest earnings have delivered a digital mix of more than 70 percent in its software units again and again, while market researchers like Circana have tracked consumers’ yearslong march toward downloads and services.
That migration affects GameStop on multiple fronts: decreases in physical game sales, a diminishing used-game pipeline, and curbed impulse attachment for accessories at the register. The company has attempted to offset some of those pressures by embracing collectibles, trading cards, refurbished hardware, and online marketplace activity — but the central traffic driver of new physical releases simply isn’t what it once was.
The Numbers Behind the Retreat and Store Impact
GameStop said in an SEC filing that it shuttered 590 stores in the last fiscal year and anticipates “a significant number of additional” closings this fiscal year. Recent disclosures also included some 2,325 U.S. locations prior to the latest wave.
If over another 400 stores go dark, the domestic footprint could slide to around 20-30% below recent readings (net of store gains) depending on the final number and timing. That kind of contraction could meaningfully reduce rent, payroll, and distribution costs — crucial levers for a chain whose traffic is increasingly shifting online.
What It Means for Shoppers and Trade-Ins
For customers, the most obvious effect is there will be fewer places near you to do preorders, in-person trade-ins, and same-day pickup of refurbished gear. GameStop has pushed mail-in trade-ins and online orders as substitutes, but the brand’s historic edge was convenience — being in the mall or down the street when a new release dropped. When that convenience erodes, look for more takers from platform stores, big-box merchants, and peer-to-peer marketplaces when it comes to used games and hardware.
There is still value with collectors in the remaining stores that focus on trading cards, limited runs, and specialty accessories. But everywhere else, availability will vary widely by region even if acquisitions grow increasingly consolidated.
Leadership and Strategy Watch under Ryan Cohen
Focus from investors continues to be fixed on CEO Ryan Cohen’s turnaround playbook. He recently received an equity incentive that could cash out if he boosts GameStop’s market cap from around $9.3 billion to $100 billion — a moonshot goal that would require much more than cost-cutting, reports have indicated. Projects have included efforts to clear physical trading cards, purchases of Bitcoin, and a shrinking retail footprint in favor of more profitable categories and e-commerce.
Industry analysts often point to a smaller, more experiential store base — one built on collectibles, used hardware, and community events — that can be profitable even as software goes digital. So the question is not whether GameStop can make that mix, but whether it can pour it fast enough to keep fans interested and investors waiting.
The Bigger Industry Picture for Physical Media
GameStop is not the only one rethinking physical media. Big-box chains have been shrinking shelf space for discs, and retailers are already exiting categories altogether as streaming and cloud services catch on. For games, the business of subscriptions, free-to-play models, and live-service updates all have made digital delivery more appealing.
For GameStop, the new closures are a painful admission of that reality. The retailer is gambling that a smaller store network, heavier digital tilt, and specialty merchandise will make more of a contribution to the bottom line than blanket coverage.
Sources:
- SEC filings
- Polygon reporting on a closure-tracking blog
- Company earnings commentary
- Industry analyses from research firms like Circana