Nostalgic retailer closes another 12 stores in single state as once-popular gaming chain shuts nearly 600 locations ...Middle East

A NOSTALGIC retailer has closed down 12 stores in a single state – as the chain reels from shutting close to 600 stores in total.

The once-popular gaming chain is another victim in the retail bloodbath that has hit multiple major names in the US.

GameStop was once one of the top gaming chains in the country, but has already shut 401 stores in January, and expects more.

This huge total included 12 in the state of Massachusetts, with a “significant number” of locations expected to be gutted in 2025.

In 2024, it closed 590 stores, too, as reported by Wicked Local.

GameStop‘s filing said: “We have also initiated a comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors, including an evaluation of current market conditions and individual store performances.

“This review, among other things, resulted in the closure of 590 stores in the United States in fiscal 2024.

“While this review is ongoing and a specific set of stores has not been identified for closure, we anticipate closing a significant number of additional stores in fiscal 2025.”

The company has not specified how many stores will close this year, or which locations are set to close.

There have been lots of reasons suggested as to why GameStop, as reported by The US Sun.

GameStop has previously invested a portion of its cash into bitcoin, something which comes with potential risks.

Bitcoin is “a highly volatile asset” with a history of dramatic and unpredictable price swings.

In the same company filing, GameStop admitted that its bitcoin strategy “has not been tested and may prove unsuccessful.”

In early February, GameStop CEO Ryan Cohen posted a photo on X of himself alongside Michael Saylor.

Saylor is the former CEO of MicroStrategy and a well-known bitcoin advocate.

On Tuesday, Saylor shared the same image, adding the caption “Welcome to Team Bitcoin,” and tagged Cohen in the post.

There are positive signs that the bitcoin investment could pay off, however.

On March 26, GameStop‘s chares rose 16% in premarket trading following the investment announcement.

INDUSTRY CHANGES

Something that many companies are realising is that the consumer landscape is changing drastically.

With the growing pressure put on average shoppers’ pockets, they are less willing to spend big money on video games.

The habit of digitally downloading a game, instead of buying a physical copy from GameStop, has also made it difficult for the chain to turn profit.

Massachusetts GameStop closures in January

Source: Newsweek

When purchasing a downloaded version of game, the money does not go to a third-party provider like GameStop.

The company filing added: “Downloading of video game content to the current generation video game systems continues to grow and take an increasing percentage of video game sales.

“If consumers’ preference for downloading video game content instead of physical software continues to increase, our business and financial performance may be adversely impacted.”

GameStop‘s net sales fell a massive 28.5% to 1.3 billion year over year.

However, the company’s net income increased by more than double, amounting to $131 million.

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