The coming of the new year is a good time to take stock and look at the 12 months ahead with a sense of optimism. According to a new report from Polygon, however, GameStop has instead decided to kick off 2026 by shutting hundreds of its stores in the US.
News of such closures apparently came as quite the shock to employees, with signs being hastily pasted to storefronts confirming the news. To add insult to injury, the same signs offered up an extra 20% on trade-ins if customers head to alternative GameStop locations.
Many customers have reportedly noted that some store closures have left them with few alternatives, with one Reddit commenter stating that their nearest store is now "1.5 hours away".
It's estimated that up to 296 stores closed in the first week of 2026, with even well-performing locations being given the chop. It seems likely that such drastic action is somewhat linked to the recent announcement that CEO Ryan Cohen could bag a pay packet worth an astonishing $35 billion, but only if the retailer is able to reach a market cap of $100 billion.
This is roughly ten times its current value at $9.3 billion, so it's a pretty wild target. The announcement clarifies that Cohen "receives no guaranteed pay—no salary, no cash bonuses, and no stock that vests simply over time", with the compensation being entirely "at-risk".
It's not a case of "all or nothing", mind you, with Cohen's compensation available in nine tranches (or 'portions'). The first is available if GameStop achieves a market cap of $20 million, with each subsequent tranche requiring an addition $10 billion in value all the way up to £100 billion. So even if GameStop only manages to reach £20 million, Cohen will still earn billions in shares.
According to a report from RNZ, GameStop is also considering ending its EB Games business in New Zealand, which would mean the closure of 38 stores in the region. According to the notice sent to employees, the proposal is "not final, and no decision will be made until we have completed a full consultation process in good faith with affected team members."