Originally established as American company in 1977 by James Kim in Philadelphia, Electronics Boutique sold calculators, radios and digital watches before pivoting towards sales of computers and software products. In the mid-1990s, Electronics Boutique became a video game retailer, later expanding internationally across Canada, Europe and Australia. In 2002, it was renamed from Electronics Boutique to EB Games, with some stores also trading as EBX and EB World.[2]
In October 2005, EB Games accepted a takeover deal from rival GameStop Corp. for $1.44 billion, who phased out the EB name in the United States, renaming all American outlets to GameStop. The EB name still survives in Canada, Australia and New Zealand due to local brand recognition, with the name used under franchise agreements from GameStop Corp.[3]
History
Originally, the operation mainly sold calculators and digital watches. Between 1977 and the mid-1990s, the company expanded to (and later stopped) selling computers, software, and other related items (according to the EB Games employee handbook). Electronics Boutique also operated stores under the name Games 'n Gadgets. The Games 'n Gadgets stores were more centered on entertainment and gaming, rather than business and productivity. In the mid-1990s, the company's focus switched to TV-based video games and consoles, though many stores still maintain PC game sections.
On April 3, 2000, Electronics Boutique made an offer to purchase rival business FuncoLand for $110 million, paying $17.50 in cash for each of parent company Funco's shares. CEO Joseph Firestone remarked that his company had been "stalking" FuncoLand for two years, and waited until the stock price was right.[4][5][6][7] On April 5, Funco received an unsolicited $135 million buyout offer from Barnes & Noble subsidiary Babbage's Etc., who offered to pay in either cash or a combination of cash and Barnes & Noble stock.[8][9][10][11] On April 12, Funco gave Electronics Boutique five days to raise its offer before they would accept Barnes & Noble's offer.[12] In response, Electronics Boutique matched Barnes & Noble's offer.[13][14][15][16] On April 26, Barnes & Noble raised its bid to $161.5 million, or $24.75 a share, leaving Electronics Boutique with another five days to respond to the bid.[17][18][19] On May 3, Electronics Boutique announced the withdrawal of its bid,[20][21] and Funco accepted Barnes & Noble's buyout the following day. Electronic Boutique's original definitive agreement with Funco included a breakup fee of $3.5 million, the cost of which was covered by Barnes & Noble.[22][23]
In May 2000, in order to unify their company, Electronics Boutique changed the vast majority of its current EB and EB Gameworld stores to the name EB Games. They also announced that they would be either closing or selling all of their EB Kids and Brandywine Sports Collectible Stores.[24]
For years EB Games' primary distribution center was in Louisville, Kentucky, with two smaller distribution centers and a World Headquarters all located in West Chester, Pennsylvania. With video games becoming increasingly popular, EB Games decided it was time for a new distribution center. In October 2004, EB Games opened its doors to its new 314,000-square-foot (29,200m2) distribution center in Sadsbury Township, Pennsylvania. The world headquarter office in West Chester remained open, however anyone working at the old distribution centers were transferred to the new location.[25]
2005 GameStop acquisition
On Thursday, October 6, 2005, shareholders from EB Games and GameStop agreed to a $1.44 billion takeover deal.[26] The deal offered $38.15[27] in cash as well as approximately ¾ of a share of GameStop stock for every 1 share of EB Games stock. This offer was a 34.2% premium on the $41.12 per share closing price of EB Games stock. GameStop decided to close EB Games's newly constructed distribution center in Sadsbury, PA, their call center in Las Vegas, NV, and their International Headquarters in West Chester, PA, eliminating more than 800 jobs. Only 65 former EB Games employees were offered jobs at GameStop's headquarters in Grapevine, TX.[28]
List of current operations
An EB Games store (later GameStop) at Hillcrest Mall in February 2015
Canada
EB began its international expansion with the opening of three stores in Toronto, Ontario, Canada in 1993. The Canadian division was the largest of the international divisions with over 300 stores as of May 2008. [citation needed]
On July 28, 2021, EB Games announced that its Canadian operations would be rebranded under the GameStop name, with the rebranding expected to be completed by the end of 2021. Stores began to be converted to GameStop signage by September 2021.[29][30]
On May 5, 2025, GameStop Canada announced their assets had been sold to Canadian businessman Stephan Tétrault and the brand would be reverting to the EB Games name in the near future.[31]
In 1997, Electronics Boutique entered the Australian market, opening its first store in the Westfield Miranda in New South Wales; eventually becoming the first national video games retailer in Australia.[32] In 2000, Electronics Boutique entered New Zealand, opening its first store in Auckland.[33]
In July 2008, EB Games announced an agreement to acquire The Gamesman, which was the largest independently owned chain of video game stores in New Zealand.[34]
In July 2014, EB Games in Australia launched Zing Pop Culture, which grew to become a national chain of pop-culture themed merchandise outlets.[35]
List of defunct international operations
Europe
EB Games operated in Spain, Germany, France, Austria, Denmark, Finland, Italy, Norway and Sweden.[36]
On May 23, 2005, EB Games announced a definitive agreement to acquire the Spanish retailer Jump, based in Valencia. Jump sold PCs and other consumer electronics. EB Games planned to begin introducing video game hardware and software into Jump's 141 stores several months after the acquisition. The acquisition provided EB Games entry into the Spanish marketplace and continued EB Games' aggressive international expansion.
Puerto Rico
By 2001, EB Games had opened stores in Puerto Rico.[37]
United Kingdom and Ireland
In October 1995, Electronics Boutique expanded into the UK by purchasing a 25% stake in the financially troubled British game retailer, The Rhino Group. The chain’s trading name was changed from Future Zone to Electronics Boutique to reflect the new ownership.[38] John Steinbrecher, Electronics Boutique's VP of Stores in the US and Canada, was seconded to the UK to manage the chain. Through store remodels, adjustments to the product mix, and the introduction of used video games, the chain’s finances were successfully restored.[39]
In October 2001, Electronics Boutique Limited went on to purchase the BarrysWorld online gaming service,[40] the French retailer ScoreGames,[41] and the Spanish retailer Centro Mail.[42]
Although the merger created a company separate from the U.S. parent, EB retained a 24% ownership stake for a period and, under the merger agreement, collected substantial management fees until 2004. That year, the companies agreed to sever the remainder of their ties through a one-time settlement. In 2002, the Game brand replaced the Electronics Boutique name at all former EB stores in the United Kingdom and Ireland, making the new company the largest video game retailer in the UK.[43]
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