Movie Gallery closing 200 Game Crazy stores

PHYSICAL: Hollywood Video locations won't be affected

By Cindy Spielvogel -- Video Business, 9/29/2009

SEPT. 29 | PHYSICAL: Movie Gallery plans to close about 200 Game Crazy stores in October, according to reports.

Located inside Movie Gallery's Hollywood Video locations, the closures won't directly affect the movie rental stores.

Company officials couldn’t be reached for comment, but when last reported on, the Game Crazy chain consisted of about 550 stores.

The news follows Blockbuster’s announcement it will close up to 960 stores by the end of next year.

Game Crazy stores service a videogame industry that suffered its sixth consecutive monthly decline last month, dropping 16% compared to the same month last year, according to NPD Group.

Although the closings have yet to be confirmed specifically by the company, it’s not necessarily bad news for the videogame industry as a whole.

“The videogame industry this year has been somewhat tough,” said Arvind Bhatia, analyst with Sterne, Agee & Leach. But his company is seeing the beginnings of a turnaround, expecting September sales to be up 5% to 10%. Game Crazy probably accounts for only about 1% to 2% of the videogame market now, he said. If the store closings go through, “others, like Gamestop, will pick up market share.”