The retailer didn't expect the situation to improve any time soon, either. It also unveiled a string of cost-cutting measures to stay afloat, including scrapping the company's share dividend (potentially saving $157 million per year) and merging ThinkGeek's online collecting sales with the main GameStop website. Just days earlier, GameStop had reshuffled its leadership with new Chief Customer Officer and Chief Merchandising Officer positions as well as a new financial chief.

Hardware sales are bound to tick upward when the new systems arrive, most likely in late 2020. However, the plummeting profits also reflect GameStop's fragility in an era when game downloads are replacing physical copies. Console sales are much more important these days, and that's a problem when there's a hardware transition underway.