They should try and switch they business model. Going after the videogame market when it moves more and more to digital just won't and can't work.
Instead, they should focus on all the stuff you can't get digitally: promotion material, feelies, merch, and so on. Additionally, I would suggest them turning their shops more into retrogaming stores where you can get old consoles and videogames. And no, I don't mean something like an used PS4 (though one could still take those, especially for later on), more like an used SNES or Dreamcast and games from those consoles.
That doesn't mean that they shouldn't sell modern consoles anymore - just stop focusing on the modern and go for the retro.
They pretty much have, haven't they? I have to assume that Gamestops in the US are a lot like EB Games (their subsidiary) here in Canada, which is now at least 50 percent gaming-related toys, miniatures and other stuff. Part of that transitionary goal was to buy Think Geek as well. Alas, Gamestop ran that site right into the ground. It's pretty much inevitable that their main business will follow.
And speaking directly to the rumour, I do believe Game Stop's days are numbered, but I don't really trust this leak. A meeting of managers of a company with 4000+ stores necessarily involves a great many people. The fact that we aren't hearing about this from multiple sources leads me to question the veracity. Particularly as I have been on both sides of such a shut down - as an employee of the company being closed, and as an employee of the company closing down a subsidiary. And when it comes to something that is essentially a bankruptcy closure, the announcements come fast and without warning. Cynical as it may seem, senior management will actually want things to appear to be normal as possible right up until the announcement. Just ask any Canadian here about when Best Buy shut down Future Shop.