EB Games New Zealand Shutters All Stores After Multi-Million Dollar Losses

The gaming retail landscape in New Zealand is undergoing a significant transformation as EB Games prepares to close all 38 of its outlets across the country by January 31, 2026. This decisive move comes on the heels of a ‘multimillion-dollar loss during the 2024 fiscal year,’ signaling the end of an era for many Kiwi gamers and pop culture enthusiasts. The decision, as revealed in an internal memo from New Zealand managing director Shane Stockwell, follows ‘significant and repeated efforts to turn the business around’ that ultimately proved insufficient.

Despite earnest attempts to salvage operations, including receiving proposals from third parties, no viable solutions emerged to ensure the sustainability of the New Zealand business. Stockwell’s memo underscored the gravity of the situation, indicating that all avenues for a turnaround had been exhausted. This closure not only impacts the physical retail stores but also extends to the New Zealand distribution center, which is slated to cease operations by February 28, 2026, further consolidating the retailer’s exit from the local market.

EB Games, which began its journey in Australia in 1997 as Electronics Boutique, expanded its footprint to New Zealand with its first outlet opening in Auckland in 2000. The company globally rebranded to EB Games in 2002, solidifying its presence in the gaming community. A pivotal moment came in 2005 when GameStop, the Texas-based gaming behemoth, acquired the company for a substantial $1.44 billion, maintaining ownership ever since. For over two decades, EB Games has been a cornerstone for gamers in New Zealand, offering everything from the latest console titles to a wide array of gaming peripherals and pop culture merchandise.

While the immediate impact on employees remains unclear, the closure of 38 retail outlets and the distribution center will undoubtedly affect numerous individuals. For New Zealand customers, the future of their engagement with EB Games will primarily shift online. The company has confirmed that access to ebgames.com.au will be opened to New Zealand customers by the end of March 2026, aiming to maintain a connection with its loyal customer base, albeit through a different channel. This transition highlights the broader industry trend towards digital retail and the challenges faced by brick-and-mortar stores in an increasingly online-centric world.

Across the Tasman, EB Games Australia continues to operate with 336 outlets, but even there, the company has had to ‘shift gears to stay competitive.’ Facing stiff competition from retail giants like Amazon and JB Hi-Fi, coupled with the steady decline of physical game sales, the Australian arm has pivoted its strategy. These initiatives include a greater focus on pop culture merchandise and the introduction of a new retro gaming trade-in program. This strategic evolution reflects a broader industry response to changing consumer habits, where digital downloads and streaming services have largely superseded physical media for many gamers. The company previously closed 20 outlets across Australia in 2020, indicating that the challenges in New Zealand are part of a larger, regional struggle.

The relevance of physical PC games has waned considerably over the last decade, with digital storefronts dominating the market. However, EB Games maintained a niche relevance for specific segments of the hobby, offering handheld gaming PCs and a diverse range of PC peripherals, including specialized gaming beds. For customers holding pre-orders, laybys, or pending warranty claims, the company has assured that in the vast majority of cases, refunds will be processed. Detailed information regarding these processes is available on the EB Games website, providing a clear pathway for customers to resolve outstanding transactions.

The announcement of the closure sparked a massive nationwide closing-down sale, which commenced on Thursday, January 15, 2026. Gamers across New Zealand flocked to stores, forming ‘large queues’ that stretched into shopping mall corridors, parking lots, and even food courts. Social media platforms like TikTok and Reddit were flooded with photos and videos of customers eager to snag a final bargain. One customer at Westfield Riccarton in Christchurch reported to 1News that the line was ‘pretty slow’ and the atmosphere ‘a bit gross’ due to the crowd and dampness. The sale, advertised as ‘50% off Everything,’ fueled the frenzy, with some retro items priced as low as $3.

However, the ‘50% off Everything’ claim came with notable exclusions, as detailed in signs posted at stores and shared by users on the r/EBGames subreddit. Consoles, brand new games, accessories, keyboards, headsets, and gift cards were explicitly not discounted. The sale primarily applied to ‘loot’ and ‘P.O. games,’ and the stores would not be accepting trades during this final period. While the EB Games New Zealand website listed marked-down prices, these items could only be purchased in-store, with no online orders being accepted. The high demand extended to the company’s website, which implemented a virtual queuing system, leaving some users waiting as long as three hours to access the site.

The queues were not just about discounts; they were also a testament to the emotional connection many New Zealanders had with the brand. A St Lukes mall security guard recounted to RNZ that by 12:15 pm, up to 500 people had gathered, catching staff ‘not prepared for anything like this.’ Klaris Phillipson, who waited three hours with her daughter Paige at St Lukes, spoke of her 30-year loyalty to EB Games, dating back to her time in Sydney, expressing that ‘there’s nothing like it in New Zealand’ for finding unique Star Wars collectibles. Brothers Kartik and Shivansh Sehgal echoed this sentiment, describing EB Games as a shop that ‘defined their childhood’ as they waited three-and-a-half hours to purchase Pokémon cards, Lego sets, and gaming accessories. These heartfelt anecdotes underscore the cultural significance of EB Games beyond just a retail outlet.

The closure of EB Games in New Zealand is more than just a business failure; it’s a poignant reflection of the seismic shifts occurring within the retail and gaming industries. The multi-million dollar losses, despite ‘repeated efforts’ to pivot, speak volumes about the overwhelming power of digital distribution, online marketplaces, and the evolving consumer preference away from physical media and traditional brick-and-mortar experiences. While the long queues for a final bargain highlight a nostalgic attachment, the inability to sustain a viable model in the face of such competition underscores a fundamental transformation in how games and related merchandise are consumed, marking a definitive end to a particular era of gaming retail in the country.