GameStop (GME) Corp. plunged 18 percent, the most in the S&P 500, to $37.09. The largest specialty retailer of video games cut its full-year profit forecast amid lower-than-anticipated software sales and reduced gross margin from Sony Corp.’s PlayStation 4 and Microsoft Corp.’s Xbox One consoles during the holiday shopping period.

http://www.bloomberg.com/news/2014-01-14/u-s-stock-index-futures-are-little-changed-google-gains.html

Edit: full article http://www.bloomberg.com/news/2014-01-14/gamestop-falls-on-narrower-margin-from-holiday-console-sales.html

http://www.bloomberg.com/quote/GME:US

Interesting they had a stepy drop between May 20th to May 28th... what had happened???

They cheat gamers by selling used games as new. Because of them used games are seen as a negative thing. They deserve this.

Gamestop earnings report has multiple red flags everywhere. Wow.

This past fiscal quarter should be the best (for holiday reasons) and since their reach is worldwide seems the issue is worldwide, and the 20% drop eye opening.

The sales of Xbox and PS4 and its games seem to be the only saving grace.  

Drops for xbox and PS3 are to be expected and indicates that the replace rate from them to the new console is quite rapid.

No mention of Nintendo in any of the reports ive seen from various sites.  Either Nintendo sold a lot of software digitally or many of their software just didnt sell (along with hardware 2DS/3DS and Wii U, Wii and DS in terminal decline doesnt help either).  Doesnt bode well for the upcoming npd numbers as well.

No mention of their used software either and their fiscal year isnt even over yet so they may be room for further declines.

It's a good day to be a gamer.

WTF I THOUGHT THE CYCLICAL ISSUE WAS NO NEW CONSOLES

The PS4 and One launches don't amount to a new gen now????????

I think over the coming years, this will only get worse. The PS4 and Xbox One each of digital stores that offer features the discs can't. More and more people will go that route for gaming. What's a Gamestop to do?

Reduced gross margins on new consoles = people not buying inflated bundles consoles and are waiting for just standalones themselves.

I remember when I couldn't comprehend life without a video rental store or physical copies. It took a loooong time but the impossible happened. I think it will be years or longer for the gaming industry but I can see Gamestop eventually losing its role as digital distribution grows bigger each year.

They've had a hell of a run, though. Unfortunately, nothing lasts forever.

I gave up on Gamestop the second I discovered Amazon. One day Gamestop will go away, and nothing of value will be lost.