Investing.com - Gaming stocks were down on Tuesday as news that retailer GameStop is abandoning efforts to sell itself contributed to a selloff in the sector.
GameStop (NYSE:GME) slumped 26% after its board of directors voted to end efforts to sell the company.
“GameStop’s Board has now terminated efforts to pursue a sale of the company due to the lack of available financing on terms that would be commercially acceptable to a prospective acquiror,” the company said in a press release.
The brick-and-mortar gaming store has suffered from competition from online companies, as well as a decline in physical video game sales.
The board is also still searching for a permanent CEO after its executive officer Michael Mauler stepped down from his post after only three months on the job.
Elsewhere Activision Blizzard (NASDAQ:ATVI) fell 1.7%, while Electronic Arts (NASDAQ:EA) dipped 2.8%, and Zynga inched down 0.5%. Nvidia (NASDAQ:NVDA) slumped 2.8% after plunging 14% on Monday on lowered guidance for the fourth quarter.