GameStop In Trouble (GME)

Video game retailer GameStop Corp. (NYSE: GME) has hit a bump in the road. The company is having its worst day in seven years after cutting its estimates for the fourth quarter. Their problems appear to stem from shortages of a Super Mario Bros. title and deep cuts in console prices, such as the XBOX 360 and Playstation 3.

“Sales momentum was impacted in December by economic weakness in all global operating segments, winter storms at peak shopping periods in December, and unexpected shortages of key products such as New Super Mario Bros. Wii,” Chief Executive Officer Daniel DeMatteo said in a statement.

Analysts had projected that GameStop (GME) would earn a per share profit of $1.58 when the company reports earnings. The retailer said today, however, that earnings would probably come in at $1.25 to $1.29 for the quarter that ended Jan 2. The shares took a 15.31% haircut on the news and are trading at $20.35 on the New York Stock Exchange.