American video game retailer GameStop has kicked off 2026 with a massive store closure. According to the latest reports, nearly four hundred locations have already closed or are in the process of closing, with the number expected to rise by the end of the month. In 2024 alone, the company closed 590 stores, and plans for fiscal 2025 suggest a similar trend of reducing physical presence.
Employee online communities have been flooded with comments about uncertainty and frustration over the upcoming layoffs. GameStop also plans to reduce the number of stores in international markets, including Austria, Ireland, Switzerland, Germany, Italy, Canada and France, but the closures so far have focused mainly on the United States. The company acknowledges that this approach will reduce revenue in the short term, but believes that it will bring benefits in the long term.
GameStop has experimented with sales and new services in recent years. It focused on retro games, second-hand products, collectible cards and geek products, and launched a digital project called “Power Packs” for trading cards. The company also tried an NFT market, but without much success, while viral campaigns and partnerships with influencers occasionally boosted the value of the stock. Meme investors further influenced short-term spikes in the stock price.
Although GameStop ended 2025 profitable thanks to digital projects and an investment in Bitcoin, the price of this success is high. At the beginning of 2025, there were 2,325 locations in the US, and given the hundreds of closures, the company is reducing its physical presence by 20-30 percent. This strategy puts thousands of workers in uncertainty, while CEO Ryan Cohen is promised stock options worth $ 35 billion, conditional on the company’s growth.
Many former employees point out the disparity between high bonuses at the top and the insecurity of ordinary workers, which further highlights social and business tensions within the company. GameStop’s focus on profitability, new technologies and restructuring is leaving workers in limbo as the company tries to secure a place in the modern digital video game market.
