CNN is reporting today that Circuit City will close its remaining 567 stores.  They cite the lack of refinancing plans or a buyer for the ailing retailer but Sarcastic Gamer received an anonymous tip today that the reason nobody is willing to step up and offer them financing or to outright buy them is a much bigger problem than the government wants publicized right now and they’ve stepped in (not to bail them out) to silence the truth until the faltering economy has been patched and is clearly in recovery.

Read on to see what the powers that be don’t want you to know…

Our source leaked us some sales numbers from the top 20% of Circuit City’s stores, which are all running profitably I might add but it’s the other 80% of the chain dragging them down.  The reason?  Nintendo products are massively dominating their sales, accounting for 83% of total store sales at some stores.  Nintendo simply can’t supply enough Wii consoles or DS handhelds to meet demand and which finicky consumers snubbing their noses at the Xbox 360 and especially the Playstation 3, Circuit City is suffering the most.

I stopped by local Circuit City to see if I could learn anything more about the situation and there was actually a line forming of people waiting to see if today’s trucks brought any Wii or DS systems in.  The ironic part is that they were sitting on makeshift seats of stacked 360 and PS3 boxes.

When I spoke to one of the Circuit City employees, he basically said that Nintendo shipments equal sales and no Nintendo shipments mean they’re paying more in labor than they’re bringing in, not taking into account facility fees or even their profit margins on the items they sell.

To put this into perspective, the average Circuit City employee makes $9.85/hour and the average store employs anywhere from 12 to 32 people at any given time/shift.  Their profit margin from the Wii and DS ranges between $2 and $7 per system.  Doing the quick mental math means they’re selling a bajillion of those things, not to mention the shovelware games that can bring in as much as a $9 profit margin (clearly their bread and butter) but for some reason, Wii owners only seem to buy games when they initially purchase their system.

It’s already rumored that Nintendo has halted all future shipments to Circuit City for fear of not getting paid for them (see, Sony wasn’t so far off base now were they?)  After some quick napkin analysis, Sarcastic Gamer analysts have determined widespread looting will commence in approximately 3 days.  Sorry Dr. King…