View photosGameStop Plummets After Struggling Chain Delivers a Grim ForecastMore
(Bloomberg) — GameStop Corp. fell to its lowest level since 2004 after predicting sales would tumble this year, providing more evidence that it’s struggling to adapt to changes in the video-game industry.
The retail chain projected after U.S. markets closed Tuesday that sales will drop 5 percent to 10 percent this year. Though GameStop is embarking on a cost-cutting drive as part of a turnaround plan, investors’ confidence is shaken. The stock fell as much as 13 percent to $8.82 in New York trading Wednesday, adding to a 20 percent decline so far this year. That’s the lowest level since September 2004.
GameStop, the largest independent retailer of video games, hasn’t kept up with the fast-changing