Full Breakdown
EB Games New Zealand to Close All Stores Amid Financial Struggles
1/15/2026, 7:46:22 PM
Closure Announcement and Financial Context
EB Games has confirmed the closure of all 38 of its retail outlets in New Zealand, effective January 31, 2026. This decision follows a "multi-million dollar loss during the 2024 fiscal year," as stated by Shane Stockwell, the managing director of EB Games Australia and New Zealand. The company has deemed its New Zealand operations no longer commercially viable, despite significant efforts to turn the business around. The distribution center will also cease operations on February 28, 2026.
Background and Company History
EB Games, originally launched as Electronics Boutique in Australia in 1997, expanded to New Zealand with its first store in Auckland in 2000. The brand rebranded globally to EB Games in 2002 and was acquired by GameStop for $1.44 billion in 2005. Over the years, EB Games became a central hub for gaming communities in New Zealand, offering a wide range of video games, gaming peripherals, and pop culture merchandise.
Impact on Employees and Customers
The closure will significantly impact employees, although the exact number of job losses remains unclear. Stockwell indicated that some employees might have opportunities to relocate to roles within EB Games' Australian operations. For customers, the company has initiated a closing-down sale, offering 50% off all items, excluding consoles, new games, and gift cards. This sale began on January 15, 2026, and has drawn large crowds, with reports of long queues at various locations.
Official Statements and Responses
In an internal memo, Stockwell expressed regret over the closure, stating, "We are saddened to be in this position having already made significant and repeated efforts to turn the business around." The company also noted that it had received numerous proposals from third parties interested in sustaining the New Zealand operations, but none provided viable solutions.
Criticism and Opposition
Critics have pointed to the broader challenges facing brick-and-mortar retailers in the gaming industry, particularly in light of the increasing shift towards digital distribution and online shopping. Retail NZ chief executive Carolyn Young highlighted that the retail sector has been under significant strain for the past few years, exacerbated by changing consumer preferences.
What's Next for EB Games Customers
As EB Games exits the New Zealand market, customers will be able to access the Australian online store, ebgames.com.au, by the end of March 2026. The company has assured customers that refunds will be processed for pre-orders and laybys, and that gift cards can be used until the stores close.
Cultural Significance and Community Reaction
The closure of EB Games marks the end of an era for many Kiwi gamers, who have expressed their emotional connections to the brand on social media. The long queues during the closing sale reflect not only a desire for discounts but also a nostalgic attachment to a retail experience that has defined many childhoods. As the gaming landscape continues to evolve, the closure of EB Games in New Zealand serves as a poignant reminder of the seismic shifts occurring within the retail and gaming industries.
Conclusion
The decision to close all EB Games stores in New Zealand underscores the challenges faced by traditional retailers in adapting to a rapidly changing market. While the Australian operations remain unaffected, the exit from New Zealand highlights the difficulties of sustaining a physical retail presence in an increasingly digital world.
