GameStop Corp. is an American company that sells video games, electronics, and gaming-related products. It is based in Grapevine, Texas, which is near Dallas and Fort Worth. GameStop is the largest video game retailer in the world. As of February 2025, the company operated 3,203 stores. These included 2,325 in the United States, 193 in Canada (the Canadian stores were sold in May 2025), 374 in Australia, and 311 in Europe. The stores are branded as GameStop, EB Games, Micromania-Zing, ThinkGeek, and Zing Pop Culture. The company was founded in Dallas in 1984 under the name Babbage's and changed its name to GameStop in 1999.

The company’s sales dropped during the mid-to-late 2010s because more people began buying video games online, and some of GameStop’s investments in selling smartphones failed. In 2021, individual investors on the internet noticed that many people had bet against GameStop’s stock, and the stock price rose sharply from $17.25 to over $500 per share. According to a government report, this sudden change in stock value was partly caused by the large amount of money individual investors spent buying the stock. In January and February 2021, the company received a lot of media attention because of the rapid changes in its stock price during the "GameStop short squeeze." At that time, GameStop was ranked 577th on the Fortune 500 list. The company also owned and published a video game magazine called Game Informer until it stopped in August 2024 and sold the magazine to Gunzilla Games in 2025.

Over 400 GameStop stores closed in January 2025 because of lower sales. This was twice as many stores as the company closed in 2024. People moving to online shopping caused the company’s income to drop. This was the largest number of stores GameStop closed in a single month.

On March 25, 2025, GameStop announced a plan to use its money to buy Bitcoin.

History

GameStop began as a company called Babbage's, which was started in 1984 in Dallas, Texas, by two men who were once classmates at Harvard Business School: James McCurry and Gary M. Kusin. The company was named after a scientist named Charles Babbage. Its first store opened in Dallas's NorthPark Center with help from Ross Perot, who invested in the company early on. At first, Babbage's focused on selling video games for the Atari 2600, which was the most popular gaming system at the time. In 1987, Babbage's started selling games made by Nintendo. In 1988, Babbage's became a public company by selling shares to the public. By 1991, video games made up two-thirds of the company's sales.

In 1994, Babbage's combined with another company called Software Etc., which sold personal computer software, to form a new company named NeoStar Retail Group. This merger was done through a stock swap, where shareholders of both companies received shares in the new company, NeoStar. Babbage's and Software Etc. kept their own names and management teams. James McCurry, the founder of Babbage's, became chairman of NeoStar, while Gary Kusin and Daniel DeMatteo, the presidents of Babbage's and Software Etc., kept their titles. Leonard Riggio, the chairman of Software Etc., became chairman of NeoStar's executive committee.

In 1995, Gary Kusin left his job as president of Babbage's to start a cosmetics company. Daniel DeMatteo, who was president of Software Etc., took over Kusin's role and became president and chief operating officer of NeoStar. James McCurry, the chairman of NeoStar, was also named the company's CEO. The company moved its headquarters from Dallas to Grapevine that same year.

In 1996, NeoStar combined its Babbage's and Software Etc. stores into one organization because sales were falling. Daniel DeMatteo resigned as president, and James McCurry took over as president. Later that year, NeoStar could not get enough money to buy inventory for the holiday season and filed for bankruptcy. Thomas G. Plaskett was named chairman, while James McCurry remained as CEO and president.

Leadership changes did not help NeoStar. In November 1996, Leonard Riggio, a founder of Software Etc. and owner of Barnes & Noble, bought NeoStar's assets for $58.5 million. Electronics Boutique had also tried to buy NeoStar, but the judge in charge of the bankruptcy case chose Riggio's bid because it kept more stores open than Electronics Boutique's plan. About 200 stores were not included in the sale and were later closed.

After buying NeoStar, Leonard Riggio dissolved the holding company and created a new one called Babbage's Etc. He named Richard Fontaine, who had previously led Software Etc.'s growth, as CEO. Daniel DeMatteo became president and COO. In 1999, Babbage's Etc. launched a new brand called GameStop with 30 stores in shopping malls. It also started a website called GameStop.com, where customers could buy video games online. Stores of Babbage's and Software Etc. promoted the website.

In October 1999, Barnes & Noble bought Babbage's Etc. for $215 million. Leonard Riggio, who owned both Barnes & Noble and Babbage's Etc., had a special group of independent directors review the deal before it was approved. In May 2000, Barnes & Noble bought Funco, which owned FuncoLand, a video game store in Minnesota. Babbage's Etc. became a part of Funco, and Funco was renamed GameStop, Inc. in December 2000 in preparation for selling shares to the public.

In February 2002, GameStop went public again by selling shares to the public. Barnes & Noble kept control of the company with 67% of its shares and 95% of voting power. Barnes & Noble remained in control until October 2004, when it gave away its 59% ownership to Barnes & Noble stakeholders, making GameStop an independent company.

In 2005, GameStop bought EB Games (formerly Electronics Boutique) for $1.44 billion. This helped GameStop expand into Australia, Canada, Europe, and New Zealand. After the acquisition, GameStop operated over 4,250 stores worldwide.

In 2007, GameStop bought Rhino Video Games, which had 70 stores in the southeastern United States, from Blockbuster for an amount not disclosed.

In April 2008, GameStop bought 49 Norwegian stores from Free Record Shop.

In October 2008, GameStop bought Micromania, a French video game store, for $700 million. This gave GameStop 332 stores in France.

In November 2009, GameStop bought a majority share in Jolt Online Gaming, an Irish game studio. Jolt closed in 2012.

In 2010, GameStop bought Kongregate, a website for browser-based games. Kongregate was sold in 2017 for $55 million.

In 2011, GameStop bought Spawn Labs and Impulse. Spawn Labs made technology that allowed people to play games remotely, and Impulse was a digital game platform that was later renamed GameStop PC Downloads. Both were shut down in 2014.

In 2012, GameStop bought BuyMyTronics, an online marketplace for electronics.

In October 2012, GameStop bought 49.9% of Simply Mac, an Apple store and repair service. It later bought the remaining 50.1% in 2013. GameStop tried to open Simply Mac stores in areas without Apple Stores but closed many locations in 2017. It sold Simply Mac in 2019.

In November 2013, GameStop bought Spring Mobile, a retailer of AT&T wireless services.

In February 2015, GameStop bought 163 RadioShack stores.

In July 2015, GameStop bought Geeknet.

In August 2016, GameStop bought 507 AT&T stores as part of plans to expand into new businesses.

In 2004, GameStop started a separate store called MovieStop that sold new and used movies. More than 42 stores were opened, often next to GameStop locations. MovieStop was sold to private owners in 2012. In 2014, it was bought by Joel Weinshanker, who also owns Hastings Entertainment. MovieStop closed in 2016.

In October 2012, GameStop introduced GameStop Kids, a pop-up store for children, at Grapevine Mills in Dallas.

Business operations

Atrix (formerly @play) is a store brand that GameStop created itself. GameStop sells gaming accessories, headsets, mice, and keyboards under the Atrix brand.

Game Informer was a magazine owned by GameStop, Inc. It stopped being published in August 2024. The magazine was mainly sold through subscriptions that customers could buy at GameStop locations. Subscriptions to the magazine were included for members of GameStop's PowerUp Rewards Pro loyalty program.

GameStop gives customers either cash or trade credit in exchange for their unwanted video games, accessories, and technology. Used video game trade-ins earn twice the profit compared to selling new video games. Some video game developers and publishers have criticized GameStop for these practices because they do not receive any revenue from the sale of used games. In 2009, GameStop responded by stating that 70% of the store credit earned from game trade-ins was used to buy new games instead of used ones, which generated nearly $2 billion in yearly revenue.

GameStop TV is a television network operated inside GameStop stores. It partners with Playwire Media for non-endemic sales. GameStop TV shows content designed for customers shopping in GameStop stores. Each month, the network includes segments about upcoming video game releases, exclusive interviews with game developers, and product demonstrations.

Game publishers receive more pre-orders when they offer exclusive in-game or physical bonuses that are only available to players who pre-order the game. These bonuses often include items like special characters, weapons, or maps. For example, GameStop provided an extra avatar costume for Call of Duty: Black Ops when it was released in November 2010, and an art book for Metroid: Other M. Other bonuses have included soundtracks, artbooks, plush toys, figurines, posters, and T-shirts.

In January 2016, GameStop announced a partnership with Insomniac Games for its 2016 game Song of the Deep. GameStop executive Mark Stanley explained that the goal was to improve communication between the company and players. If this partnership was successful, GameStop planned to expand similar deals with other developers. In April 2016, GameStop created the GameTrust Games publishing division to support mid-sized developers. At the same time, GameTrust Games announced it was working with Ready At Dawn, Tequila Works, and Frozenbyte to develop more games.

As of January 2025, GameTrust has published two games on Steam, one in 2016 and another in 2017.

Controversies

In 2022, a consulting company called BCG filed a lawsuit against GameStop because GameStop claimed it did not need to pay a $30 million fee for a project. GameStop said it was best for its stakeholders not to pay because BCG did not improve the company’s EBITDA, a measure of financial performance that BCG had promised to improve. BCG responded by saying it had done more than promised in its proposal and that the fee was based on "projected" improvements in EBITDA, not the actual results, as outlined in the contract.

The court decided that BCG’s lawsuit did not have enough support to continue. GameStop’s claim that BCG had not provided value and was not owed money was not disputed, and the lawsuit was dismissed with prejudice, meaning it could not be refiled.

On June 5, 2025, a GameStop store in Staten Island, New York, attached pre-order receipts to the boxes of Nintendo Switch 2 consoles for customers who ordered in advance. Because the console was placed near the front of the box, the staples used to attach the receipts could damage the screens. GameStop replaced the affected units and later held an auction for the stapler and a repaired console to raise money for the Children's Miracle Network Hospitals.

Corporate affairs

As of February 1, 2024, the company operated 3,023 stores, including 2,325 in the United States Division, 193 in the Canada Division, 374 in the Australia Division, and 311 in the Europe Division.

Purchased a large part of Gamesworld Group Limited ("Gamesworld"), an Ireland-based video game retailer with 10 stores, helping GameStop start operations in Ireland.

Purchased Electronics Boutique Holdings Corp. ("EB Games"), a United States-based video game retailer with about 2,300 stores, helping GameStop expand operations in Australia, Canada, Europe, New Zealand, and the United States.

Purchased Game Brands Inc. ("Rhino Video Games"), a United States-based video game retailer with 72 stores, helping GameStop grow operations in the United States.

Purchased The Gamesman Limited ("The Gamesman"), a New Zealand-based video game retailer with 8 stores, helping GameStop expand operations in New Zealand.

Purchased SFMI Micromania ("Micromania"), a France-based video game retailer with 332 stores, helping GameStop start operations in France.

Purchased Free Record Shop Norway AS ("Free Record Shop"), a Norway-based record store retailer with 49 stores. GameStop changed these record stores into video game stores.

Purchased Simply Mac, Inc. ("Simply Mac"), a United States-based Apple specialty store retailer.

Purchased Spring Communications, Inc. ("Spring Mobile"), a United States-based Apple wireless retailer.

Started Zing Pop Culture, an Australia-based Pop Culture retailer.

Purchased Geeknet, Inc. ("ThinkGeek"), a United States-based online and wholesale Pop Culture retailer.

As of January 29, 2022, GameStop Corp. operated 32 subsidiaries.