GameStop’s miraculous turnover in early 2021 has proven as short-lived as expected at the time, with the company posting a A$190 million loss during the latest quarter, despite better-than-expected sales.

Last January, GameStop was in a bad way, having closed around 1,000 outlets in the past years, which saw hedge funds betting against it. Activist-driven investments saw stock rise 1,600 per cent in just three weeks, catching many hedge fund managers short.

Now, as the pandemic continues on, and physical stock becomes redundant or rare, GameStop is returning to its previous slump.

Net sales of US$2.25 billion were ahead of expectations for US$2.16 billion, however shares fell 7.4 per cent as the overall losses were reported. The stock is down 56 per cent from this time last year.

“GameStop is on a strategic path to fully leverage our unique position and brand in gaming,” the company said.

“Our strategic plan is designed to optimise our core business while at the same time, pursuing strategic initiatives to transform GameStop for the future by expanding our addressable market and product offerings to drive growth in the gaming and entertainment industries.”

These expansions include plans to launch an NFT marketplace within the financial year, and improving its e-commerce.

“We have learned from the mistakes of the past decade, when GameStop failed to adapt to the future of gaming,” CEO Matt Furlong said during an earnings call.

“It is important to stress that GameStop had become such a cyclical business and so capital-starved that we’ve had to rebuild it from within. We’ve also had to change how we assess revenue opportunities by starting to embrace, rather than run from, the new frontiers of gaming.”