EB Games Dapto closes as digital downloads, subscriptions and collectibles reshape physical gaming retail in Australia

A local closure in a rapidly changing retail category

The EB Games store at Dapto Mall has ceased trading, with the retailer’s official store listing showing normal hours through Saturday 17 January 2026 and the site listing the store as closed from Monday 19 January 2026 onward. The change has added to a pattern of consolidation across video game retail, where fewer stores are expected to carry a broader mix of products.

Why physical game stores are under pressure

The closure comes amid long-term shifts in how games are purchased and accessed. Console and PC ecosystems increasingly prioritise digital storefronts, and subscription services have expanded access to large catalogues without requiring boxed products. At the same time, the resale and trade-in model that supported specialist game retail faces competition from online marketplaces and second-hand chains, while large-format retailers and e-commerce platforms have increased price pressure on new releases.

• Digital downloads have reduced reliance on physical discs and cartridges.
• Subscription libraries have shifted spending from individual titles to monthly access.
• Price competition has intensified across major retailers and online stores.
• Trade-in and pre-owned sales face more alternatives than in past console cycles.

EB Games’ broader footprint and regional contrasts

EB Games operates in Australia under the ownership of GameStop. While the brand continues to maintain a large national store network in Australia, recent developments in the region highlight uneven conditions for specialist retail. EB Games’ New Zealand business is scheduled to close all stores by 31 January 2026, with its distribution centre due to cease operations by 28 February 2026, following losses reported for the 2024 fiscal year.

Retail outcomes for specialist game chains are increasingly determined by scale, store format, and the ability to diversify beyond boxed software.

From games-first to mixed-category retail

Across the sector, specialist retailers have increasingly leaned on hardware, accessories and collectibles to offset weaker physical software sales. In practice, this model tends to favour larger footprints capable of stocking wider ranges and creating space for pop-culture merchandise. Smaller stores in shopping centres may be more exposed when sales volumes no longer justify dedicated leases, particularly if customers can obtain the same products through digital storefronts or multi-category retailers.

What the Dapto closure indicates for the Illawarra market

The end of trading at Dapto leaves fewer specialist options in the Illawarra area and concentrates demand into remaining centres and online channels. For consumers, the shift can mean fewer opportunities for in-person browsing, trade-ins and local pre-order fulfilment, while publishers and platform holders continue to steer marketing and sales toward direct digital distribution.

The Dapto closure is a local example of a wider, measurable transition: spending is increasingly captured by digital stores, subscription services and larger retail formats, reshaping what a “video game shop” looks like in 2026.