Seeking Alpha
Editor's notes: The writing's on the wall: with the transition to digital video games and new consoles unlikely to save the day, game over could come by early 2014.

Over the past three months, GameStop (GME) has traded between $22 and $28 and currently sits near the ~$25 midpoint. Disappointing holiday sales figures released in early January confirmed the ongoing negative trend in the physical video game market. In recent weeks, the stock has shrugged off that report. GME has a number of sell-side defenders who, to their credit, have been quite right since last summer's lows (~$15).

I've been negative on GME since late October (at $23/share), suggesting then a long-term short would pay off by 2H13 / 1H14. I believe this thesis remains intact, and investors betting on a return to growth in the new console cycle are mistaken. While GME, with a...

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