GameStop was once a prominent retail giant in the gaming industry, but it seems those days are behind it. As video gaming continues to march to an all-digital future and less consumers purchase pre-owned physical games, GameStop has struggled, with its stock dropping to its lowest point since 2003.

GameStop stock dropped 36 percent, and is currently sitting at $4.90 at the time of this writing. This drop is reportedly the biggest one-day loss in GameStop's history. Mike Hickey, an analyst for Benchmark Co., has described GameStop's current financial situation as the business burning to the ground.

Analysts are unconvinced that GameStop will be able to bounce back from its financial woes, and so the writing may be on the wall for the company. GameStop has certainly had a rough go about it in recent years, to the point that it was nearly sold off back in February, and it reported a staggering $673 million full-year loss.

gamestop stock price drops as business burns to the ground

To its credit, GameStop has made some efforts to turn around its financial troubles in the face of an increasingly digital video game industry. This has included an attempt to pivot into a "cultural experience," as well as raising the price of its Pro membership to bring in more revenue.

If GameStop survives long enough for the launch of the next-gen consoles, then they could provide a much-needed boost. GameStop remains one of the best options for people who want to reliably pre-order new video game hardware, and it stands to reason that the PS5 and next Xbox could breathe life into the struggling retail chain.

GameStop's stock situation is grim, but perhaps it can mount a comeback if it successfully reinvents itself and figures out new ways to generate revenue without having to rely on the dwindling used games market. The company has been mocked for various reasons over the years, but there will still be many gamers who will be sad to see it go.

Source: Yahoo! Finance