GameStop (NYSE: GME) released its fourth-quarter earnings report on Tuesday afternoon, and its results and outlook were subpar, as expected. With video game makers increasingly relying on digital distribution, GameStop faces long-term headwinds in the new and pre-owned game segments of its business. Moreover, an effort to sell the company failed earlier this year.
These negative trends have caused GameStop shares to lose more than three-quarters of their value since late 2015. The video game specialist's poor earnings report caused the stock to plunge into single-digit territory in after-hours trading on Tuesday.