GameStop continued its aggressive footprint reduction in fiscal 2025, following the closure of 590 stores nationwide in fiscal 2024. Although the company did not disclose an exact figure for additional closures, social media reports and an unofficial tracking blog have documented shuttered locations across at least eight states. This downsizing reflects GameStop’s response to persistent declines in mall traffic and intensified competition from digital and online retailers.

In its December earnings report, GameStop reported year-over-year revenue down by $39.3 million, extending a multi-year trend of top-line contraction driven by digital downloads and e-commerce competition. Same-store sales continued to underperform management’s targets, and operating margins contracted by approximately 120 basis points compared with the prior year, putting further pressure on free cash flow and liquidity ratios.

In early 2025, GameStop revised its investment policy to permit allocations into digital assets such as Bitcoin, aiming to optimize short-term returns and bolster cash reserves. Management stated that the updated policy is intended to provide sufficient liquidity for daily obligations while seeking higher yields in low-rate environments. The move has prompted debate among analysts over the appropriateness of crypto exposure for a retailer facing structural headwinds.

GameStop granted CEO Ryan Cohen a performance-based stock option award in January, contingent on a market capitalization milestone of $100 billion. With the current market cap near $9 billion, this target implies more than 10x appreciation. The package underscores management’s focus on delivering outsized shareholder returns but has drawn scrutiny given the retailer’s shrinking store count and ongoing revenue declines.