EB Games, the Australian video games retailer, appears to be facing serious financial pressure, with the Brisbane-based group moving to shut down its New Zealand operations following a sharp collapse in revenue and a reported loss of $8.67 million, despite the losses the Company still paid their parent Company millions in royalties.
ChannelNews understands that several Australian suppliers have not been paid for up to three months. One supplier told ChannelNews, “We are seriously concerned, particularly as insiders are telling us the company is struggling.”
After reporting a $174 million slump in revenue last year, ChannelNews understands that sales have continued to fall further during the 2026 financial year.
The sudden decision to close stores comes amid growing concerns about the future of traditional games retailing, following the closure of multiple GameStop stores across the United States.
At the end of the last financial year, Electronics Boutique Australia, which trades as EB Games, reported that revenue fell dramatically from $813.1 million in the 2024 financial year to $636 million in 2025. The company has since been offering heavy discounts in an effort to clear excess stock.
Despite these pressures, EB Games paid $12.8 million in royalties to its parent company, GameStop Holdings, in 2025, following royalty payments of $16.3 million in 2024.
The company’s cash position has also weakened significantly, with cash on hand falling from $101.9 million to $54.4 million. As of 1 February 2025, net current assets stood at $58.9 million, down from $102.4 million a year earlier.
ChannelNews research also shows that dividends were declared on 2 October, despite the downturn in revenue and profitability.
Nevertheless, directors Shane Stockwell, Mark Robinson, and Daniel Moore have stated that, in their opinion, there has been “no significant change in the state of affairs of the company.”
In what appears to be a move to stem further losses, all 38 EB Games stores in New Zealand will close on January 31, with the company’s distribution centre scheduled to shut a month later on February 28.
EB Games claims it received multiple expressions of interest for the New Zealand business, but said that “these parties did not present any proposals or solutions about how to keep the business sustainable.”
The closure comes as traditional physical game retailers continue to adjust their business models amid declining physical game and hardware sales.
Industry sources believe that JB Hi-Fi secured the majority of new Nintendo Switch stock at launch, a move that is thought to have negatively impacted EB Games’ sales.
While the company has not disclosed the full extent of its losses in New Zealand, suppliers contacted by ChannelNews say they have been chasing EB Games management for outstanding payments, some for more than three months. Those suppliers have asked to remain anonymous.
