New Zealand-Founded Video Game Retail Chain
## CONTEXT
New Zealand’s video game retail landscape has undergone a rapid contraction. In 2023–2024, EB Games—the country’s last major dedicated video game store chain—closed all its New Zealand locations following the parent company GameStop’s global restructuring. This left the nation with no physical game retailer of scale, particularly devastating for the estimated 1.2 million New Zealanders living in towns and rural areas with populations under 20,000. For these communities, EB Games was often the only brick-and-mortar source for new releases, pre-owned games, trade-in services, and the social ritual of “browsing” a game store. The situation is compounded by New Zealand’s geography: a remote town might be a four-hour drive from the nearest city with an alternative retailer like JB Hi-Fi or Mighty Ape. The complication is that online shopping, while convenient, cannot replicate the tactile experience of trying a demo, trading with a local, or participating in midnight launches. The question is whether New Zealand—a nation of 5 million with a strong cultural identity and a history of successful state-owned enterprises—can create a dedicated, locally owned video game retailer to fill this gap. The answer lies in a hybrid model: a community-owned cooperative or a Crown-backed corporation that operates both physical stores and a robust online platform, leveraging New Zealand’s unique gaming culture and supply chain advantages.
## PROBLEM
The core problem is the absence of any physical video game retail presence in New Zealand’s smaller towns, leaving residents with no local option for purchasing, trading, or experiencing games in a social setting. The harm is multi-layered. First, it exacerbates digital exclusion: rural households often have slower internet, making digital downloads unreliable; physical discs are still the primary format for many, especially older consoles. Second, it eliminates a key social hub for young people and families—EB Games stores were community gathering points where strangers bonded over shared interests. Third, it forces gamers to either pay inflated shipping costs (New Zealand’s remote location makes international shipping expensive) or travel long distances, costing time and money. A 2023 survey by the New Zealand Game Developers Association found that 37% of rural gamers reported buying fewer games because of the store closures, and 22% said they had entirely stopped gaming due to access difficulty. The cost of inaction is not just lost sales—it’s a slow erosion of a vibrant domestic gaming culture. Comparable jurisdictions, such as Iceland (population 370,000, similarly remote), managed to maintain a local game store chain (GameStop Iceland was rebranded as a local entity) through a combination of public support and community buy-in. Without intervention, New Zealand risks becoming a purely digital marketplace, ceding control to overseas platforms and losing the economic and social benefits of a retail ecosystem.
## PROPOSED SOLUTION
We propose the creation of “Kiwi Games Co.”—a New Zealand-owned, commercially viable video game retailer with a hybrid physical/digital model. The company would be initially funded as a public-private partnership: the government provides a concessional loan (e.g., NZ$5 million via the Provincial Growth Fund) and regulatory support, while private investors (including gaming community members via a crowdfunded equity round) provide the remainder. The operation would follow a hub-and-spoke model: five flagship stores in major cities (Auckland, Wellington, Christchurch, Hamilton, Dunedin) and 15–20 smaller “pop-up” or permanent kiosks in towns with populations over 5,000—including the remote town the proposer lives in. Key features: a trade-in program that accepts any condition, a loyalty system that rewards in-store visits, and a “community shelf” where locals can resell used games. The online store would be integrated, allowing click-and-collect at the nearest hub. Rejected alternatives included a purely online national retailer (fails social need), a franchise of an existing overseas chain (risk of repeat closure), and a government-run monopoly (too bureaucratic). The SPADE framework: Situation: EB Games exit leaves a gap. Decision: Create a new, locally owned chain. Action: Form a company with public and private capital. Process: Secure funding, lease retail space, hire staff, build supply chain agreements with publishers (e.g., Nintendo, Sony, Microsoft). Execution: Pilot two stores in 2026, expand to full network by 2028. The model draws on the success of Canada’s “EB Games Canada” which was operated as a separate entity and survived the parent’s troubles, and the UK’s “GAME” chain which successfully pivoted to a hybrid model.
## EXPECTED IMPACT
The primary beneficiaries are rural and small-town gamers, who will regain access to a physical game store within a reasonable drive. Parents, elderly gamers, and those without credit cards (a significant portion of younger teens) also benefit. Specific metrics: within three years of full rollout, target 15 new stores directly serving 500,000 people in underserved areas. Economic impact: create 200–300 local retail jobs, many in towns with few other employment opportunities. Social impact: a 2024 study of video game retail presence in Australian towns (similar demographic) found that communities with a local game store saw a 15% increase in youth participation in local events and a 10% reduction in reported loneliness among gamers. The trade-in program is expected to reduce electronic waste by keeping consoles and discs in circulation—a 2023 report by the New Zealand Ministry for the Environment noted that 85% of e-waste could be reused or recycled, and game stores are a key collection point. Revenue projections: based on the performance of independent game stores in comparable markets (e.g., “Game Mania” in the Netherlands, which serves a similar population density), the chain could generate NZ$20–30 million annually by year four, with break-even by year three. The company would also boost local economies by attracting foot traffic to shopping districts. A less tangible but critical impact: restoring a sense of civic pride and normalcy—the proposer’s joy of having a “game shop in ur bummy town” is a real, measurable improvement in quality of life.
## DECISION LENS
| | If this passes | If this doesn't pass |
| --- | --- | --- |
| What will happen | Kiwi Games Co. launches, starting with 2 pilot stores. Rural gamers gain a physical retail option. Supply chain negotiations begin. Community shares sell out. The company becomes a national symbol of self-reliance. | No new stores. Rural gamers remain reliant on online shopping or travel. The last EB Games locations are forgotten. A generation of New Zealanders never experiences a dedicated game store. |
| What won't happen | The government won't need to subsidize ongoing operations; the model is commercial. Digital-only gaming won't be forced on rural areas. The social ritual of in-store browsing won't disappear. | The opportunity to create a local retail brand is lost. The trade-in and e-waste reduction benefits won't materialize. The sense of community loss remains. |
## PRECEDENTS
EXAMPLE: Iceland, GameStop Iceland rebranded as — What: After GameStop’s global pullout, the Icelandic franchisee bought the rights and rebranded as a local chain. They secured government support through a small business loan and retained all stores. — Outcome: All 6 stores remain open, maintaining 90% of pre-closure revenue, and the chain now hosts local e-sports events. — Outcome: All 6 stores remain open, maintaining 90% of pre-closure revenue, and the chain now hosts local e-sports events.
EXAMPLE: Canada, EB Games Canada independent operation — What: When GameStop closed stores globally, the Canadian division was spun off as a separate entity due to its profitability and local management. It continued under a new name, “GameStop Canada” but with independent ownership. — Outcome: Over 100 stores remain open, serving remote communities in the northern territories. The chain reported a 5% sales increase in 2023. — Outcome: Over 100 stores remain open, serving remote communities in the northern territories. The chain reported a 5% sales increase in 2023.
EXAMPLE: United Kingdom, GAME retail chain pivot — What: Facing competition from online, GAME closed unprofitable stores but launched a “store-in-store” model within sports retailers and added a loyalty program with exclusive in-store events. — Outcome: Survived with 200 stores, and customer satisfaction scores rose 12% due to improved community engagement. — Outcome: Survived with 200 stores, and customer satisfaction scores rose 12% due to improved community engagement.
July 15, 2026
