Is it game over for GameStop? Here are the stores closing in Connecticut

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• In January, the company shuttered 401 stores. This is nearly double the amount of stores that closed in fiscal year 2024, according to data compiled from a website tracking location closures, said New

Is it game over for GameStop in Connecticut?

The video game retailer plans to close a “significant number” of stores in fiscal year 2025.

In January, the company shuttered 401 stores. This is nearly double the amount of stores that closed in fiscal year 2024, according to data compiled from a website tracking location closures, said Newsweek.

Per a Form-10K filing, as of Feb. 1 ― the end of FY 2024 ― GameStop had 3,203 stores, including 2,325 in the U.S. During the same year, the retailer also closed 336 stores in Europe, 33 in Australia, and 11 in Canada, according to PYMNTS.

“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,” said the company filing. “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.”

Here’s why GameStop is facing financial challenges.

Why is GameStop closing many stores?

In recent years, GameStop ― once a leader in video game retail ― has endured financial hardships due to a decline in sales. Consumer habits have also attributed to financial struggles, with many opting to download video games digitally on consoles instead of purchasing physical hard copies.

“Downloading of video game content to the current generation video game systems continues to grow and take an increasing percentage of video game sales,” said the filing. “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 invests in bitcoin

On Wednesday, March 26, GameStop (GME) shares rose 16% in premarket trading. This was due to GameStop’s announcement that it is investing in bitcoin as a treasury reserve asset. The company said that a “portion of our cash or future debt and equity issuances” may be invested in the digital currency, CNN reported.

CT GameStop closures in January, per Newsweek

• Danbury: Berkshire Shopping Center, 67 Newtown Road, Ste 9
• Groton: Groton Shoppers Mart, 985 Poquonnock Road, Ste 2
• Naugatuck: Cross Pointe, 799 New Haven Road
• Rocky Hill: Town Line Plaza, 80 Town Line Road
• Stamford: Ridgeway Center, 2391 Summer St.
• Waterford: Cross Road Center, 167 Waterford Parkway North, Ste B

Rin Velasco is a trending reporter. She can be reached at [email protected].