why is eb games closing in nz

EB Games is closing all its stores in New Zealand because the local business has been losing money for years and is no longer considered commercially viable by its parent company.

What’s actually happening

• EB Games has proposed shutting down all 38 New Zealand stores plus its distribution centre, effectively ending its NZ operations.

• A letter to staff from managing director Shane Stockwell says the NZ arm recorded multi‑million‑dollar losses in the 2024 financial year and that the company does not expect conditions to improve.

• Under the proposal, all roles in EB Games New Zealand would be disestablished, with only limited options for some staff to relocate to roles in Australia.

Main reasons EB Games is closing in NZ

1. “No longer commercially viable”

• Management explicitly describes the New Zealand business as “no longer commercially viable” after several years of poor performance and a large loss in 2024.

• The company says it tried for around three years to turn things around, including changing store formats and attempting to sell the NZ business, but these efforts did not deliver the needed results.

2. Sluggish retail and changing gamer habits

• EB Games points to a “sluggish” retail environment in New Zealand and low confidence that store performance will improve.

• Commentators and forum users note that many players now buy digital games, subscribe to services, or play long‑term live‑service titles (like Fortnite), which reduces demand for physical discs and in‑store purchases.

3. Rising costs and tight consumer budgets

• Discussion in NZ and Australian gaming communities highlights that New Zealand consumers are under significant cost‑of‑living pressure, making full‑price games and new consoles harder to afford.

• At the same time, higher commercial rents and operating costs mean physical retailers like EB Games struggle to stay profitable when sales are flat or declining.

Wider context: why this feels so big

• All New Zealand EB Games stores are expected to close by the end of January 2026, with the distribution centre following shortly after, marking the end of one of the country’s last major specialist game retail chains.

• Local reports and forums frame this as part of a broader trend: international retailers leaving the NZ market when they cannot sustain profits under current economic conditions.

Quick FAQ style recap

• Is it just one or two stores?
  No. The proposal covers all NZ stores and the distribution centre.

• Is it final?
  Officially, the company calls it a “proposal” subject to consultation with staff, but coverage and internal letters make clear that full closure of NZ operations is the expected outcome.

• Will EB Games still exist in Australia?
  Yes, the closure applies to the New Zealand business; discussion currently focuses on NZ, though some Australian gamers are now asking what this means long‑term for their own market.

Information gathered from public forums or data available on the internet and portrayed here.