By Jon Scarr
Buying a new video game no longer requires a trip to the store. The shift toward digital distribution is showing up in the numbers. Spending on new physical video games in the United States fell to US$1.5 billion in 2025. That was the lowest annual total Circana has tracked since 1995. Yet EB Games Canada is investing in reasons for gamers to visit its stores beyond buying a game off the shelf.
Since returning to Canadian ownership in May 2025, EB Games Canada has emphasized collectibles, merchandise and in-store events. The Nintendo store-within-a-store that opened in Toronto on October 17 is one example. EB Games Canada still sells games, but it is also giving fans more to explore inside its stores.
I saw some of that appeal firsthand when I visited the Toronto location with my son on opening day. We loved the Nintendo displays and the excitement around us. But I also left wanting more reasons to return. That raises a bigger question about EB Games Canada's strategy. Can these experiences turn an opening-day visit into something customers want to do regularly?
The Digital Shift Is Changing Physical Game Sales
Circana analyst Mat Piscatella reported that U.S. spending on new physical video games fell 11% in 2025. Those figures don't measure Canadian sales, but they illustrate the pressure on retailers that depend on new discs and cartridges.
In 2020, ESA Canada reported growth in full-game digital downloads and a decline in retail purchases among Canadian adult and teen gamers. That's historical Canadian evidence, not a current measurement of Canada's physical game market.
New Formats Complicate the Numbers
The picture isn't quite as simple as physical games disappearing, though. Through August 2026, U.S. spending on new physical game software was up 5% year over year to US$738 million. Piscatella attributed the increase to Nintendo Switch 2 Game-Key Card releases. Spending on those releases rose 631%, compared with a 3% decline for other new physical formats.
A Game-Key Card might look like a regular game card, but the full game isn't on it. You still need to download the game and keep the card inserted whenever you want to play.
Nintendo's own results tell a related story. Digital sales accounted for 54.6% of its dedicated-platform software revenue in the fiscal year ending March 31, 2026. That includes downloadable games, add-on content and Nintendo Switch Online. It doesn't mean that 54.6% of individual game copies were sold digitally.
PlayStation is moving further in that direction. Sony plans to stop manufacturing discs for new PlayStation game releases starting in January 2028. Games released before then aren't affected, and retailers will still be able to sell digital versions of new games. Physical game retail isn't ending overnight, but the business is changing.
EB Games Canada Takes a New Direction Under Canadian Ownership
EB Games Canada's current direction began taking shape before the Nintendo space opened. Canadian entrepreneur Stéphan Tétrault acquired the Canadian GameStop business on May 5, 2025, and announced the return of the EB Games Canada name. The company had operated under the GameStop Canada name since 2021.
The announcement went beyond restoring familiar store signs. EB Games Canada outlined plans for more in-store events, expanded product ranges and closer connections with pop-culture brands. It also emphasized bringing gaming communities together in its stores.
Tétrault founded Imports Dragon and is a co-owner of McFarlane Toys. He brought experience in licensed toys and collectibles to a retailer that was already selling those products. In a May 2025 MobileSyrup interview, EB Games Canada president Jim Tyo discussed midnight launches, trading-card events and more activities inside stores.
In October, Tétrault explained that he wants EB Games Canada stores to become destinations for gaming fans, with more to offer than traditional shopping.
New Store Concepts Beyond Nintendo
Those plans started taking shape well before October 2026. EB Games Canada opened a concept store at Cours Mont-Royal in Montréal in October 2025. EB Games Canada announced demonstrations, brand events and launches for its EBX area. The company also planned Nintendo and Pokémon events at the store.
The following month, EB Games and Vibrant Marketing introduced EB Trends at Toronto's Eaton Centre. The temporary Collectors Vault pop-up featured rare merchandise, trading cards and interactive displays. More than 500 fans lined up for its opening, according to EB Games Canada. The pop-up closed in January 2026 after a 10-week run. EB Games Canada also has an EB Trends store at Fairview Park Mall in Kitchener, with extra space dedicated to trading cards.
EBX and EB Trends came before the permanent Nintendo space. They show EB Games Canada's approach extending to different store formats and product categories.
Physical Stores and Online Shopping
The company is investing online too. In September 2026, EB Games Canada announced a new website and ordering platform to connect online shopping more closely with its stores. It also acknowledged shipping delays and collect-in-store disruptions during the rollout.
EB Games Canada isn't choosing between stores and digital commerce. It's investing in both and giving customers more reasons to visit in person.
Collectibles Are Becoming a Bigger Part of the Business
Games bring people into EB Games Canada, and merchandise is already a substantial part of its business. In that May 2025 MobileSyrup interview, Tyo expected the retailer's toys and collectibles business to reach $100 million that year. He described it as the company's fastest-growing segment, with growth of more than 30%.
Those were Tyo's 2025 estimates, not confirmed final-year revenue or profit. They help explain the company's interest in collectibles.
Canadian Toy Sales Add Useful Context
There's also growth in Canada's wider toy market. Circana data published by the Canadian Toy Association recorded C$2.68 billion in toy sales among participating retailers in 2025. That was up 14% from 2024. Action figures and accessories grew 13%, and building sets increased 25%.
The games-and-puzzles toy category reached C$464 million, an increase of 56%. That's a category for products such as tabletop games and trading cards, not console video game software. Circana's participating retailers represent an estimated 69% of Canada's toy market. These figures don't measure EB Games Canada's sales.
Circana also named Pokémon Canada's Toy Property of the Year for 2025. A Pokémon trading-card collection topped the games-and-puzzles category. A Pokémon plush assortment also led the plush category.
More Than New Game Sales
A collector looking for a particular Mario figure, Pokémon product or trading-card release has a reason to visit a store. They might want to see an item up close or discover something unexpected.
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| Kirby, Pokémon and Super Mario plush toys on display at EB Games Canada's Toronto flagship. |
EB Games Canada still sells pre-owned games and digital products. Its newer trading-card initiatives add another dimension to its retail business. That gives EB Games Canada a way to serve gamers and collectors without depending entirely on new packaged games.
Whether that business can make up for declining physical software spending is still an open financial question. The company's publicly available comments don't tell us enough about its margins or overall profitability to answer it.
Nintendo's Toronto Store Brings the Strategy Together
On October 17, 2026, Nintendo of Canada and EB Games Canada opened North America's first Nintendo store-within-a-store at 267 Yonge Street in Toronto. The permanent 1,500-square-foot area includes Nintendo Switch 2 consoles, playable game demonstrations, character displays and Nintendo merchandise.
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| Fans line up outside EB Games Canada's Toronto flagship for the Nintendo store-within-a-store opening on October 17, 2026. |
The dedicated area occupies part of an existing EB Games Canada store. Nintendo's standalone stores in New York and San Francisco are different retail formats. Nintendo gets space to introduce its games and characters. EB Games Canada gives fans another reason to visit its downtown flagship.
A Nintendo Relationship Built Over Years
The companies weren't starting from scratch. Nintendo of Canada held Pokémon Scarlet and Pokémon Violet launch celebrations at GameStop Canada locations in November 2022, including 267 Yonge Street. The same Toronto store hosted a midnight launch for The Legend of Zelda: Tears of the Kingdom in May 2023. Actor Maitreyi Ramakrishnan attended and participated in the ribbon cutting.
Nintendo also organized themed weekends at GameStop stores across five provinces in summer 2024. The relationship continued when Nintendo Switch 2 launched in June 2025. Nintendo of Canada hosted a midnight launch celebration at the same 267 Yonge Street location, with trivia, giveaways and a countdown to the console's release. Nintendo of Canada vice president Susan Pennefather and EB Games Canada president Jim Tyo were both there. EB Games Canada also announced plans to open 132 locations at midnight across the country.
Nintendo continued bringing playable demonstrations and promotions to EB Games Canada locations. In March 2026, selected stores held Pokémon Pokopia demonstrations. Qualifying Mario game purchases also came with a special anniversary keychain. Nintendo also announced that a Splatoon Raiders demo would be available at every EB Games Canada location starting July 23.
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| Visitors can try Nintendo Switch 2 games in handheld mode at EB Games Canada's Toronto Nintendo space. |
Nintendo used the same retail network for years under the GameStop Canada name. The October 2026 opening gives that relationship a permanent home in Toronto.
Nintendo's announcement also confirmed that selected My Mario merchandise would be available exclusively in Canada at the Toronto Nintendo space. I still hope to see merchandise created specifically for Toronto.
EB Games Canada also offered Nintendo eShop gift card credit with qualifying in-store purchases on opening day. The promotion brought digital Nintendo eShop credit into a physical-store purchase.
In interviews published by Retail Insider on October 20, Tyo and Nintendo of Canada's Susan Pennefather discussed their years of joint events and why Toronto suited the new space. Neither company has announced another Canadian Nintendo store-within-a-store or disclosed the installation's cost.
Giving Canadian Gamers a Reason to Return
My son and I arrived at the Toronto store around 8 AM on opening day. The lineup was already around the corner. We waited about two and a half hours before getting inside. Seeing Mario emerging from a giant green pipe and the huge Zelda display was exciting, but the people around us were a big part of the day too.
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| Nintendo fans explore the new retail space during its October 17 opening at EB Games Canada's Toronto flagship. |
Fans were chatting, some had dressed up, and I met a longtime 4ScarrsGaming follower wearing a Mario costume. You don't get that kind of moment from purchasing a game on your console at home.
I also came home with JAKKS Pacific's Chomping Wonder Bowser Jr. figure. I'd been searching for it at other EB Games Canada locations. At the same time, I passed on the My Mario Wood Block Sets because of their prices. My son and I had hoped to find more merchandise unique to Toronto.
Trading Cards and Community Events
The retailer has other activities intended to give people reasons to visit. Its TCG UNIVRS program accepts eligible bulk Pokémon and Magic: The Gathering cards for trade-in at participating stores, including the Toronto and Montréal flagships.
EB Games Canada's official website also lists EB Arena events on selected Saturdays at locations across several provinces. The company also announced a TCG UNIVRS area at 267 Yonge Street. A new tournament experience for the Toronto location was described as forthcoming.
These initiatives matter because a trading-card event or demonstration gives customers something to do in person. EB Games Canada plans to keep updating the Nintendo area as new games arrive. The 267 Yonge Street flagship has a launch celebration for The Legend of Zelda: Ocarina of Time scheduled for November 4, with trivia, a costume contest, photo opportunities and giveaways. A similar event is planned for the Montréal flagship. I'd also love to see Toronto-exclusive clothing, changing merchandise displays and Nintendo Direct viewing parties.
In an October 20 interview with Retail Insider, Tyo described success in terms of people returning and discovering what's new. Opening weekend was exciting. The challenge now is keeping that interest alive after the grand-opening crowds have gone home.
EB Games Canada Still Has Something to Prove
EB Games Canada's direction offers a possible answer to a changing market. As more games are downloaded, a store can still sell merchandise, let people try games and consoles, and bring fans together for events. That doesn't mean physical game sales have stopped mattering or that every store can support a large Nintendo-branded installation.
The Nintendo opening has certainly attracted attention. In an October 27 LinkedIn post, EB Games Canada owner and CEO Stéphan Tétrault reported that the company's two announcements generated more than 570 media placements. He also said the publications carrying that coverage had a combined monthly audience exceeding 170 million.
There are practical questions behind the enthusiasm. A dedicated area takes up space that could hold other products. Displays, merchandise and events all carry costs. We don't know what the Toronto Nintendo partnership cost, how many opening-day visitors bought something or how often those customers will return.
The broader collectibles business raises similar questions. We don't have confirmed final 2025 sales or profit figures to compare with Tyo's forecast. Nor have the companies announced another permanent Nintendo location.
None of that takes away from what I saw in Toronto. My son and I were surrounded by people excited about Nintendo that morning, and we left wanting to come back. I love that a Canadian gaming retailer is investing in experiences like this when so much of the industry is moving toward downloads.
Now I'd like to see what EB Games Canada does with that opportunity. The November 4 Zelda celebration is an encouraging next step. The real test is whether the store keeps giving fans something to come back for next year and beyond.
Jon Scarr
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