GameStop shares surged on Thursday, shortly after the video game giant announced it would lean into selling retro games via new, dedicated stores.

As of publication time‌, the Texas-based retailer’s stock price is up about 10% over the past 24 hours to a current price of $21.81.

The stock surge follows GameStop’s announcement late Tuesday that it would refashion some of its brick-and-mortar locations into speciality shops with a focus on vintage video games‌ and consoles, such as the old-school Nintendo, the Microsoft Xbox 360, Sony PlayStation 2, and Sega Genesis, per the company’s post on Twitter (aka X). 

It's unclear how many of GameStop’s stores will be converted into retro gaming stores. GameStop did not immediately return Decrypt’s request for comment. 

The retailer has long specialized in secondhand games that are traded in by customers, but over the years, it has increasingly phased out older consoles and games due to limited store space.

However, some older games and hardware can command sizable prices due to limited availability and nostalgia-fueled demand. That shift has led to a thriving online market for retro games, as well as a rise in specialty independent stores and conventions focused on classic video games. GameStop now appears to be leaning into that opportunity.

GameStop’s latest stock price surge follows a months-long slump, as the embattled retailer contends with overhauling its outmoded brick-and-mortar-focused retail business amid the video game industry’s rapid digitization.

Since 2022, the company has taken steps to improve its shaky financial footing, such as conducting multiple rounds of layoffs, shuttering several of its stores and warehouses, and recently closing down the long-running Game Informer magazine. The firm also briefly ran an NFT marketplace, which it shut down earlier this year.

GameStop, of course, has also leaned into a meme stock run-up by selling more than $2 billion shares to investors. Despite that, GameStop shares have fallen more than 50%, from roughly $48 to $22, in the past two years.

The firm’s stock plunged most precipitously during meme stock influencer Roaring Kitty's livestream in June. During the hours-long stream—the first in roughly two years from the influencer, aka Keith Gill—the YouTuber revealed he may have sold or exercised his $20 call options in GameStop.

With a holding of 9 million shares, Gill’s position is now worth approximately $198 million.

Edited by Andrew Hayward