1) Gamestops business model failed. In that case the company should be shut down. Impossible as Gamestop has no debt problem but a lease liability problem. They have to go on.
2) Slow fade out Close down the stores where the lease is running out. Will take 4-5 years to shut the company off. 2011 xmas results are dismal, it's over already. So if nothing changes sales will drop slowly. Yet 10% less sales and the company swings to a smll loss. Closing down the stores means the loss won't widen. Value of the company: current net cash/debt position + value of customer databases. Remember that we price in the death of the video games industry here.
3) Something changes. When? January. Because xmas is too important for the old products. Which January? The one after the bad holiday season. So probably January 2012 we will see the announcement of new consoles. Suddenly we need a retailer again to move those boxes. Sudenly it becomes clear the industry is cyclical and this is the through.