GameStop

GameStop traces its origins to 1984, when Babbage's was founded in Dallas, Texas, by James McCurry and Gary M. Kusin, named after the 19th-century computing pioneer Charles Babbage. The first store opened in Dallas's NorthPark Center with early investment from Ross Perot. Initially selling software, the company quickly pivoted to video games, capitalizing on the dominant Atari 2600 and adding Nintendo games in 1987. Babbage's went public via an IPO in 1988, and by 1991 video games accounted for two-thirds of sales. The GameStop banner was developed under Barnes & Noble in 1999, following the acquisition of Babbage's and Software Etc. by the bookseller. The company had its own IPO in 2002 and acquired Electronics Boutique in 2005, significantly expanding its footprint. Other predecessors include Funco, acquired in 2000.

As of January 2026, GameStop operated 2,206 stores globally, down from a peak of over 6,000. The company sells new and pre-owned video games, consoles, accessories, and gaming merchandise. Pre-owned items, warranties, accessories, and collectibles are particularly profitable. In 2013, GameStop expanded into collectibles tied to movies, TV shows, and toys, discovering that customers were more interested in intellectual property than product categories. The company's PowerUp Rewards loyalty program has approximately 40 million members. GameStop's primary competition comes from mass retailers like Walmart, Target, and Best Buy, as well as digital platform owners Sony, Microsoft, and Nintendo, who sell directly to consumers through their online stores. A key strategic challenge is that GameStop's most important suppliers are also competitors through their digital channels.

GameStop became the center of an extraordinary financial phenomenon in early 2021, when a wave of small individual investors, organized largely through online communities like Reddit's WallStreetBets, drove its heavily shorted stock to astonishing heights. The episode captivated the public and financial world, turning GameStop into a symbol of the meme-stock movement and sparking debates about retail investing, market dynamics, and the power of online crowds. Under CEO Ryan Cohen, who took control in 2021 and previously co-founded Chewy, the company has pursued a strategic transformation. In 2024, GameStop attempted to acquire eBay in a $55 billion proposal, offering half cash and half stock, but eBay rejected the offer. The proposal included plans to turn approximately 1,600 U.S. stores into live-commerce and authentication hubs for high-value resale items like watches, handbags, sneakers, and collectibles. The company continues to close underperforming stores while investing in its e-commerce platform and collectibles business. [edit]