The video gaming business continues to be the fastest growing segment of the entertainment industry. Grand View Research forecasts that the global video game market will grow at a compound annual growth rate (CAGR) of 13.4% between now and 2030. Eventually, it will reach $583.69 billion in revenue for consoles, hardware, and games combined.

Video games are increasingly diverse and played across a range of platforms, including consoles, desktop computers, and smartphones. Made for mobile devices, they are one of the fastest growing segments of the industry. At the same time, video games and their characters are providing fodder for movies and television shows that dominate the streaming sector.

However, not every company in the industry is succeeding. Let’s explore three sorry gaming stocks to sell in February while you still can.

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GameStop (GME)

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We’ll start with GameStop (NYSE:GME), the first name that often comes to mind when one thinks of sorry gaming stocks.

Five weeks into 2024 and GME stock is down 16%. That brings the share price decline to 34% over the last 12 months. GameStop is a long way from its 2021 peak when it was treated as the mother of all meme stocks. In fact, retail investors have all but abandoned the stock. Also, the current share price reflects dwindling financials and a turnaround strategy that is going nowhere fast.

The future of GameStop remains to be seen. The company’s brick-and-mortar retail stores continue to post diminishing returns and the transition to an online first business model appears to be stalled. New CEO and main investor in the company Ryan Cohen has yet to outline his vision for the future. However, he convinced the company’s board of directors to let him invest GameStop’s surplus cash in stocks and crypto. What could go wrong?

Sony (SONY)

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PlayStation video game maker Sony (NYSE:SONY) hasn’t set the investing world on fire lately. In the past 12 months, SONY stock is up only 6%, with most of the gain coming in the past month.

The Japanese company and its share price have been treading water over the last year. With the North American and European gaming markets saturated, Sony focuses on growing PlayStation console sales in developing countries, with mixed results.

Recently, Sony called off a planned $10 billion takeover of mobile video game maker Zee Entertainment in India after two years of negotiations and cajoling. Now, Sony has switched its focus to Africa, where it has made a strategic investment in African gaming startup Carry1st as it tries to expand on the continent. Meanwhile, sales of its newest PlayStation 5 console reached 50 million units in the lead-up to Christmas last year. However, PS5 sales continue to lag behind its predecessor, the PlayStation 4 console.