EB Games global closures: What it means for Australia
The future of EB Games is in question after the announcement its New Zealand business will shut down all stores across the country.
The gaming and pop culture retailer confirmed on Wednesday its New Zealand operation will close on January 31. The remaining stores will close on that day, with the distribution centre permanently closing on February 28.
The EB Games website confirmed access to ebgames.com.au will open to New Zealand customers by the end of March 2026.
The closures will heap more pressure on a global commercial property sector already struggling to meet the competition of newer and cheaper online marketplaces.
Fashion hubs have been hugely impacted in this commercial property space, with iconic brands like Ally Fashion and H&M already buckling against the rise of Temu and Shein.
EB Games’ collapse in New Zealand proves tech retailers are not immune to dwindling foot traffic in physical shopping centres.
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EB Games confirmed its New Zealand operation will close on January 31.
EB Games Australia & New Zealand managing director Shane Stockwell said the company received numerous offers, but “these parties did not present any proposals or solutions about how to keep the New Zealand business sustainable”.
EB Games Australia launched in 1997 as Electronics Boutique. The first New Zealand store opened in Auckland in 2000, and two years later, Electronics Boutique globally rebranded to EB Games.
US video game retailer GameStop acquired the company in 2005 for $1.44 billion, and it has been owned by the Texas-based corporation since.
According to GameStop’s latest annual report, there are currently 38 stores in New Zealand and 336 in Australia.
It is unclear how many jobs have been affected. A letter sent to NZ employees did not mention the future of the Australian stores.
EB Games has 336 stores in Australia. Picture: Josh Woning
EB Games has been struggling in recent years. In 2020 the company closed 20 outlets across Australia.
The company has needed to shift gears, with stiff competition from Amazon and JB Hi-Fi, as well as the slow decline of physical game sales.
In the earlier staff letter, Mr Stockwell described the New Zealand business as no longer commercially viable, with a “multimillion-dollar loss during the 2024 fiscal year”.
He said the retail market continued to be sluggish and the company was not confident its performance would improve.
“We are saddened to be in this position having already made significant and repeated efforts to turn the business around,” Mr Stockwell wrote.
The company said that there may be opportunities for New Zealand employees to relocate and take up work in the Australian EB Games operations.
EB games Australia have been reached for contact.
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