Outline:
A video game retailer and reseller named GameStop is said to have started the new year by closing hundreds of its physical stores throughout the United States. According to theGameStop Closing List, a blogspot highlighting the chain’s closures, GameStop plans to shut down more than 400 stores — approximately 25% of all U.S. locations — in January 2026 as part of its “comprehensive store portfolio optimizationNews of store closures and extensive layoffs coincides with reports that GameStop’s billionaire CEO, Ryan Cohen, might receive a $35 billion stock bonus if the company meets certain performance targets.
In its December 2025 SEC report, GameStop stated it “anticipates closing a significant number of additional stores in fiscal 2025,” which concludes on January 31, 2026. As of the time this was written, the GameStop Closing List indicates that the chain has closed (or confirmed the upcoming closure of) 443 U.S. locations across 42 states since the beginning of 2026. This number is in addition to the retailer’s approximately 600 closures in 2024. GameStop did not disclose the total number of stores that were closed during the fiscal year 2025.
In its December 2025 financial statement, the Texas-based company reported a decline in profits by $39.3 million compared to 2024.
GameStop’s chief executive might profit from store shutdowns
In a January 7 news release, GameStop stated it would provide its CEO Ryan Cohen “a performance-based stock option award,” but noted that he would “have to raise the chain’s market value to $100 billion.” The press release outlines the terms of the agreement:
- Market Capitalization Targets: The initial portion is released only if GameStop reaches a market value of $20 billion. Each following portion demands an extra $10 billion rise in market value, with the final target at $100 billion.
- Operational Achievements: Alongside the increase in market value, Mr. Cohen is required to achieve profit goals. The initial phase demands a Cumulative Performance EBITDA of $2.0 billion, with objectives rising for each following phase until reaching a total of $10 billion.
If the Company fails to meet the minimum Market Capitalization Threshold of $20 billion and the Cumulative Performance EBITDA Threshold of $2.0 billion, no stock options will vest, and Mr. Cohen will not have a chance to receive any compensation from the award. There is no partial credit between the thresholds; each specific target must be fully achieved for a portion of the award to be earned.
The award, according to GameStop, “ensures that Mr. Cohen’s incentives are directly aligned with creating long-term value for GameStop’s shareholders.” However, since the $100 billion market cap in question is approximately 10 timesGameStop’s present valuation of $9.26 billion, the CEO of the chain could, in theory, employ staff reductions and extensive store closures to achieve that objective.
It’s also important to mention that Cohen is the company’s second-largest investor with a holding ofabout 8.3%, which implies that an increase in value would make the CEO even wealthier than the stated distribution.
GameStop plans its next moves as physical locations face challenges
With Xbox Game Pass subscriptions, Steam downloads, and other digital options taking center stage in the gaming world, GameStop has slowly moved away from its conventional retail approach, focusing instead on areas like gaming accessories, collectibles, geek-themed t-shirts, and Funko figurines. A rise in curbside pickups was not enough to counter the effects of the 2020 COVID-19 social distancing measures, which added more challenges to store traffic and in-store events such as midnight launches.
GameStop hired CEO Ryan Cohen in 2021, during the period of its well-known short squeeze. That year, GameStop’s revenue reached a record high, and it has since tried to recreate that level of attention on multiple occasions. Recent brand approaches (and the resulting debates) include its massivecryptocurrency investments, a questionable “Trade Anything Day,” a class-action settlement, the “Power PacksTCG platform, and itsvery online beef with Best Buyregarding content creator Rilie Huntley.
Cohen, the creator of the pet supplies retailer Chewy, has previously faced criticism personally forinflammatory social media postsIn early 2025, the company’s contentious CEO blamed “wokeness and DEIIn a post on X (formerly Twitter) after the company decided to sell its retailers in France and Canada. ‘Email M&A@gamestop.com if you’re interested in purchasing GameStop Canada or Micromania France. High taxes, Liberalism, Socialism, Progressivism, Wokeness, and DEI are included at no extra cost if you buy now,’ he wrote.
One postOn November 7, 2024, it was stated, “Trump has now won three elections in a row,” implying that Donald Trump secured victory in the 2020 U.S. presidential election, thus supporting false claims about electoral misconduct. The post has been seen almost a million times.
In late October 2025, the Trump administration referenced a GameStop social media post that proclaimed the “console wars” had ended. The official White House X account responded to GameStop’s post with an AI-generated image of President Donald Trump wearingHalo protagonist Master Chief’s recognizable armorIn the picture, Trump raises his right hand in a salute and wields an energy sword with his left. The caption states, “Power to the players.”
This is an ongoing situation. Keep an eye on it.Outrun Gamingfor additional details as they become available.
RELATED:
- Darkness, Ghost of Yotei lead DICE Awards 2026 nominations
- Game, set, and match! Nintendo unveils the ‘Mario Tennis Fever’ trailer
- Top Nintendo Switch 2 titles available now
This post, “GameStop shutting down more than 400 locations as CEO seeks $35 billion in compensation,” first appeared on Outrun Gamingon January 11, 2026.