Is GameStop on the decline?

Asked by: Mr. Jared Treutel V  |  Last update: July 30, 2026
Score: 4.9/5 (75 votes)

Yes, GameStop is in significant decline, marked by massive store closures (hundreds in 2024-2025), falling revenue from traditional game sales, and a strategic pivot to collectibles, but profitability has seen recent bumps due to cost-cutting and higher-margin products, though the overall trend points to a struggling physical retail model overtaken by digital gaming.

Is GameStop closing more stores in 2025?

Yes, GameStop is closing a significant number of stores in its fiscal year 2025 (ending January 31, 2026), with reports in early 2026 indicating hundreds more closures, following nearly 600 closures in the previous fiscal year, as the company continues to shrink its physical footprint due to online gaming trends. By January 2026, over 470 additional stores were slated to close, adding to the large number shuttered throughout 2025.

Is GameStop still a good investment?

Key Points. GameStop is the pioneer of the meme stock craze. The company has actually improved its operations and recently reported a solid quarter of earnings. However, the business remains risky, and there are better opportunities in the market.

Is the GameStop guy still rich?

What is Keith Gill's net worth in 2025? If Gill's Gamestop position hasn't changed since he last made it public in June 2024, he owns 9 million shares, which as of early 2024, would be worth around $275 million. If Gill still holds both of these stock positions, his net worth could be around $580 million.

Is GameStop in danger of closing?

In a March 2025 filing with the Securities and Exchange Commission (SEC), GameStop said it planned on closing “a significant number of additional stores in fiscal 2025,” which ends on Jan. 31, 2026, per the documents.

How GameStop Fell Apart

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Did everyone who invested in GameStop lose their money?

Even the stories of some of the traders Dumb Money was based on, and who I talked to for this story, are far from cut and dried. Some big names lost money on GameStop, but others made a bundle. The same goes for everyday investors — some won, some lost, and plenty were just in it for the casino-like ride.

What caused GameStop to crash?

The GameStop short squeeze was a significant stock market event that occurred primarily in early 2021, focused on the video game retailer GameStop. This event arose when professional investors engaged in short selling, a strategy predicated on the belief that GameStop's stock would decline in value.

How many Gamestops are left in the US?

As of February 2025, the company operated 3,203 stores including 2,325 both in the United States, 193 in Canada (the Canadian operations were sold in May 2025), 374 in Australia and 311 in Europe under the GameStop, EB Games, Micromania-Zing, ThinkGeek and Zing Pop Culture brands.

Which stores will go out of business in 2025?

These national and regional retailers went out of business in...

  • Bargain Hunt. Bargain Hunt, a Nashville-based discount retailer, said in February that it would shutter all of its 92 stores in 10 states after declaring bankruptcy.
  • Forever21. ...
  • Joann Fabrics. ...
  • Liberated Brands. ...
  • Party City. ...
  • Rite Aid. ...
  • Sonder.

What is the 7% sell rule?

The 7% sell rule is a stock trading guideline to cut losses quickly, advising you to sell a stock if it drops 7-8% below your purchase price to protect capital, remove emotion, and prevent small losses from becoming catastrophic, a strategy popularized by William O'Neil's CAN SLIM method for growth investing. It assumes that truly strong stocks typically don't fall much below their buy point, so a dip signals something is wrong, requiring you to exit the trade to preserve funds for better opportunities.
 

When did GameStop start declining?

GameStop Corp. (GME) is a brick-and-mortar retail video game vendor chain that had its initial public offering in early 2002. By 2021 it was a troubled firm, with steadily falling share prices. It had been closing stores for some time, and the pandemic accelerated its sales decline.

Did anyone get rich off GameStop?

The rising stock value allowed Gill to turn an initial US$53,000 investment into $50 million by January 2021. Between 2021–2024, Gill kept a low profile but continued to increase his GameStop ownership.

Could the GameStop squeeze happen again?

While it is impossible to predict markets accurately, the conditions for another GME short squeeze are theoretically present. High short interest, retail investor enthusiasm, market volatility, and positive news could combine to create another situation reminiscent of the early 2021 squeeze.

Is GameStop going to close in 2025?

Last year, in a filing with the Securities and Exchange Commission (SEC), GameStop stated that they were going to close "a significant number of additional stores in fiscal 2025" which ends soon on Jan. 31, 2026. During the last fiscal year, GameStop closed 590 stores nationwide.

Will GameStop become a holding company?

This new policy also empowers CEO Ryan Cohen to direct the company's investment activities in both public and private markets. This change makes it evident that GameStop is likely moving toward becoming a holding company, especially considering its robust balance sheet with around $1 billion in cash.

Why did all the GameStop stores close?

GameStop closing hundreds of stores nationwide, including five in Alabama. At the beginning of 2025, GameStop launched a mass shutdown. As of December, the video game chain had closed 590 stores as part of an effort to reduce costs in the 2025 fiscal year, which ends Jan. 31, 2026.

What is the 90% rule in stocks?

The "Rule of 90" in stocks most commonly refers to Warren Buffett's advice for his wife's inheritance: 90% in a low-cost S&P 500 index fund for growth and 10% in short-term government bonds for stability, designed for long-term investors. However, a more pessimistic "Rule of 90-90-90" suggests 90% of new traders lose 90% of their capital within 90 days, highlighting the high failure rate due to lack of education, emotional trading, and poor risk management.