EB Games has confirmed it will shut its New Zealand business, with local stores set to close on 31 January, and the country’s distribution centre shuttering on 28 February. The decision arrives swiftly after an initial proposal was sent to staff, suggesting plans to close the business were solidifying even as media reported on the possibility.
EB Games New Zealand closure – quick links
Why EB Games New Zealand is closing
In a letter sent to staff, seen by RNZ, EB Games management confirmed the closure, as well as attempts to prevent it. As shared, the company reportedly had ‘numerous’ third parties suggest solutions, but ‘these parties did not present any proposals or solutions about how to keep the New Zealand business sustainable.’
As previously noted by Stockwell, EB Games’ New Zealand business had become unsustainable, with significant losses leading to the shutdown. It’s believed the business was no longer commercially viable, with significant losses in the 2024 fiscal year. While management attempted to turn things around, the process did ‘not [deliver] the commercial outcomes that [the team] hoped for’.
The reality is that many traditional retail stores are currently experiencing a downturn, as consumers increasingly clamp down on spending, or otherwise find new avenues for purchasing goods – particularly video games.
In July 2025, IGEA’s annual analysis of the local Australian games industry indicated digital game sales made up $1.34 billion of total sales in the industry, while traditional retail accounted for just $930 million. Spending at traditional retail was down by 19% year-on-year, and while digital spending also declined in comparison, this was only by 3%.
While this data relates specifically to Australian business, it’s likely these trends are reflected across the pond.
EB Games New Zealand staff have been offered Australian redeployment
As part of the now-confirmed shutdown of EB Games New Zealand, staff have reportedly been offered alternative options, including redeployment and relocation in Australia.
At this stage, it’s unclear how many job losses will result, although analysis of EB Games’ New Zealand business suggests around 38 stores will be impacted. That likely accounts for dozens of staff, many of whom may not be in a position to accept potential redeployment.
‘We are saddened to be in this position having already made significant and repeated efforts to turn the business around,” Stockwell reportedly told staff.
As in all cases like this, our thoughts are with those staff now facing redundancy.
Also on ScreenHub: Meta reportedly shuts down Sanzaru Games, Armature Studio, and Twisted Pixel
Meta has reportedly initiated major layoffs within its AR and VR-focussed Reality Labs division, with around 10% of the workforce being cut, and at least three major game development studios shut down: Sanzaru Games, Armature Studio, and Twisted Pixel Games. Per reporting from Bloomberg and posts on LinkedIn, dozens of developers are now out of work, as Meta’s AR/VR operations are slimmed.
In an internal post seen by Bloomberg, Andrew Bosworth, Chief Technology Officer of Meta, described a move away from an investment in the metaverse, into new avenues: ‘We said last month that we were shifting some of our investment from metaverse toward wearables,’ Bosworth reportedly said. ‘This is part of that effort, and we plan to reinvest the savings to support the growth of wearables this year.’
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