Your title is misleading. Retail game stores are not going bankrupt. What I see is a small rant about the way certain retailers do business. There is nothing wrong with that because I have raged about GameStop before.
Say on Tuesday I go buy Assassin's Creed 3. I decide the game is terrible and want to sell it on Wednesday. Gamestop will give me $30, but they turn around and sell it for $55. They are worse than pirates. The devs profit off of that one copy only once, while they profit from it multiple times all while screwing over the end user. For whatever reason people keep going back.
I haven't done business with Gamestop in over a year. Sadly I go to Walmart and buy my games now

They talk about next gen might be strictly digital and while I hate that idea, at least it would put ****ty companies like lamestop underground.
I agree about the people these companies hire. I remember an employee back in 2006 telling me his friend had a hacked ps3. He then proceeded to argue with me when I told him he was full of ****. Also the thing about these game stores that is probably the most annoying to me is the damn fanboyism you will see. I can go into my local gamestop and if I buy a PS3 game I have to hear "you should get that on 360. 360 is better and will treat ps3 customers like ****." I go to the next gamestop over and they are all ps3 fanboys that argue how the ps3 is better and look down on people making 360 purchases. I have all 3 consoles and I have a preference of consoles based on the game I am buying. I don't believe in the fanboy crap and I am just there to buy a game and to go home and play it. I dont need these d0uche canoe fanboys telling me what I need to spending my money on.
If I wanted to go in and buy Dance Central for the wii that is nobodies business but my own and they do not need to be telling me what console I should be worshipping like they do. I have got to the point anytime I go in there I am rude.
We do have a much smaller local game shop now called G2K Games, and they are amazing. Talking to one of those employess is like talking to some of the people here, you never get put down for your choice of purchase, they sell everything from Sega Master system to current gen as well as Magic cards, comics, and hardback Manga. That store is awesome and they give much better trade in/sell value than LameFlop.