The iconic video game retailer GameStop is preparing for another massive wave of store closures, with nearly 470 locations slated to shut their doors in January alone. This dramatic downsizing will leave the chain with fewer than 2,000 stores, a stark contrast to its peak of over 6,000 outlets across the United States.
A Nationwide Wave of Closures
According to data from a blog that tracks the company's closures, the cuts will be felt across 40 states. California is expected to bear the heaviest losses, with 50 closures planned for this month. Texas follows closely with 44 stores set to close, then New York with 30, Florida with 25, and Pennsylvania with 24. This rapid contraction marks a significant moment for a brand that was once a cornerstone of shopping malls and retail strips.
From Boom to Bust and Meme-Stock Mania
Founded in 1984 as Babbage's, a small software shop in Texas, GameStop rode the console boom of the 1990s and 2000s to become the nation's largest specialty video game chain. It was famous for midnight launch events for major titles like Call of Duty and Grand Theft Auto. However, the shift towards digital downloads and online marketplaces severely eroded its core business, leading Wall Street to label it a struggling relic of the 'retail apocalypse' by the late 2010s.
The company's narrative took a surreal turn in 2021. During the Covid-19 lockdowns, a coalition of amateur traders on Reddit's WallStreetBets forum orchestrated a historic short squeeze, catapulting GameStop's share price from under $20 to hundreds of dollars in days. This meme-stock frenzy allowed the company to raise capital and attempt a pivot under new leadership, including Chairman Ryan Cohen, co-founder of Chewy.
An Uncertain Future in a Tough Retail Climate
Despite efforts to reinvent itself as a broader e-commerce and technology-focused retailer, dabbling in PC gear, collectibles, and cryptocurrency, GameStop has struggled to return to consistent profitability. It now occupies a unique dual identity: part traditional retailer, part meme-stock icon whose shares still fluctuate on online sentiment.
GameStop's challenges are magnified by a dire environment for physical retail. Broader industry data shared with the Daily Mail reveals that 8,234 US stores closed in 2025, a 12% increase from the previous year's 7,325 closures. Major chains like Macy's are also executing significant closure plans, highlighting the relentless pressure on brick-and-mortar operations.
The Daily Mail has approached GameStop for comment on the latest round of closures. For now, the chain continues to serve a dedicated, though shrinking, base of gamers and collectors, even as its physical presence diminishes rapidly.
