The shop was previously owned by celebrated indies ePlay and The Software Store before CHIPS arrived. It will now be run by Steven Ford and Chris Popple.
CHIPS’ joint managing director Nik Agar said: “In the last few years the industry has been through a transitional period and although it is now on the up there have been a few casualties.”
Fellow joint MD Don McCabe added: “The Gloucester store has quite a history as a video games shop which is a big advantage for us.
“We have also been fortunate enough to attract two members of staff who used to work at the store before and obviously know the customers well.
“Although CHIPS’ expansion is usually via the franchise route we are always on the lookout for good store locations and when we are able to attract excellent, experienced staff then it’s a real bonus.”
The purchase represents the fourth time that CHIPS has bought out a store owned by another indie in recent times. In July 2005 it launched CHIPS Hereford after The Software Store pulled out of the site. And earlier this year it acquired what are now known as CHIPS Preston and CHIPS Kirkham from Eclipse.
Last month, CHIPS attracted over 120 delegates to its annual conference in Durham, where its Bishop Auckland outlet won its store of the year award.