GameStop Slumps 40% to 16-Year Low as Gaming Passes It By
- Sales dive and company halts dividend as turnaround falters
- Analysts worry shift to streaming games may be insurmountable
A shopper walks toward a GameStop Corp. store in Ottawa, Illinois.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
GameStop Corp. tumbled as much as 40% to a 16-year low after posting moribund sales and halting its dividend, signaling that the troubled retailer is out of step with accelerating trends in video games.
The latest shortfall for GameStop reflects what analysts said may be a fundamental disconnect between the company’s business model, mainly focused on sales of physical game discs at brick-and-mortar stores, and the industry’s move toward online and streaming games like the free-to-play Fortnite.