The used game market is set to get a little bit smaller. In a letter we received today, we learned that Movie Gallery Inc., the parent company of Hollywood Video and GameCrazy, filed for bankruptcy on October 16 of this year.

The letter contained a URL with all the legal information. If you feel like reading all the legal info, head over here.

My guess is that this is mostly due to services like NetFlix taking away major business from the brick and mortar rental stores.  Blockbuster is also suffering a similar fate as News.com recently pointed out.

For those expecting huge clearance sales, I wouldn't hold my breath as no plan have been layed out yet. This seems to be mostly a restructuring for the company. I wouldn't rule out more stores closing though.