A hot new videogame once meant long lines outside
stores. But today, with nearly every game available for download, the thrill of being an early adopter has gone virtual. That has left GameStop in an awkward spot.
The bricks-and-mortar retailer known for a large collection of games, consoles, and preowned items has struggled in the past year even as game publishers reported major spikes in revenue and user engagement.
GameStop (ticker: GME) sales are forecast to drop 17% in the fiscal year that ends in January, after a 22% drop a year ago. Earnings have declined for four consecutive years, and analysts see them going deeply negative in the 2021 fiscal year that ends this month, with an adjusted loss of $1.86 a share. For now, Wall Street is counting on a rebound in the year ahead. That has helped push the stock up more than…