On Thursday, GameStop Corp shared that the company's sales during the holiday season had failed to improve as compared to the previous year, and this led to the firm pulling back its earnings forecast for the financial year's fourth quarter. The company has blamed a combination of a weak economy, unfavorable weather conditions and shortage of products for the loss.

Shares of the largest video games retailer in American fell by 16%, and the company said that sales for the holiday season, which are the most important for GameStop, managed to pull-in a total of about $2.86 Billion, which is hardly any change from the figure recorded for last year, when the country was struggling with Recession.

Before the Christmas season had rolled in, the company had shared very positive and upbeat comments about sales, asserting that they were off to a good start. But while the sale of new videogame titles hiked by 4%, thanks to the introduction of rapidly selling games like Call of Duty: Modern Warfare 2 from Activision, sales of gaming consoles and hardware fell by 8%.

For the fourth quarter, GameStop now expects to post earnings of $1.25 to $1.29 per share, which is well below the profit of $1.57 that analysts are expecting.