CALIFORNIA – GameStop announced it would be closing nearly 400 stores nationwide, which includes 50 in California, according to a blog tracking store closures.

The closures are part of a “store portfolio optimization” initiative that began in fiscal 2024.

In an SEC filing, GameStop said it 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 performance. 

The review resulted in the closure of 590 stores in the United States in fiscal 2024. 

“We anticipate closing a significant number of additional stores in fiscal 2025,” GameStop said.

The fiscal year ends on Jan. 31, 2026.

The filing shows GameStop has already exited or closed operations in Austria, Ireland, Switzerland, Germany, and Italy, and is pursuing the sale of its businesses in Canada and France.

CEO could earn $35 billion in performance-based stock options

GameStop says it is trying to run its stores and website together and spend less so it can turn a profit.

The company also plans to sell more higher-profit items, such as graded collectibles, to increase revenue.

In December, GameStop paid $30,000 to a customer in exchange for a rare Pokémon card.

Last week, GameStop announced that CEO Ryan Cohen, who took over as CEO in September 2023, could receive $35 billion in performance-based stock options.

“In order for the award to fully vest, the Company’s market capitalization would have to grow to $100 billion and the Company would need to achieve $10 billion in cumulative performance EBITDA (earnings before interest, taxes, depreciation and amortization),” according to the press release.

Under the award, Cohen receives no guaranteed pay—no salary, bonuses, or time-based stock. 

“This structure ensures that Mr. Cohen’s incentives are directly aligned with creating long-term value for GameStop’s stockholders,” the company said.