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There's almost no chance that this is accurate as presented. Downsizing doesn't happen by getting your employees in a room and telling them that many of them are going to be laid off later this year.

With that said, Gamestop certainly knows that they need to reduce their store count, and they may well see transitioning to other types of gaming as a good move. So, it wouldn't surprise me to hear that some internal discussions along these lines are taking place. There's just no way that they got a bunch of middle managers together to announce their imminent firing.

The other problem with this scenario is that Gamestop is not in imminent danger of collapse. They've been profitable most quarters, and have, as I understand it, a manageable debt load. So, the more likely downsizing process would be one of not renewing leases as they expire, and reducing the store count in a more natural way. That's really the only way that a company like Gamestop can do it. Landlords don't just say "sure, Gamestop, even though you have some cash, go ahead and not pay the rent for the three years left on your lease. We'll just let the store sit empty." The only thing in this "leak" that seems like it could be strictly true is the transition of some stores into tabletop gaming. That would be another way that they could, in a sense, reduce the store count without a bankruptcy filing (which they can't do, because they're not bankrupt.)