Mr Cohen argued that GameStop could thrive by reducing real estate costs and making the company’s online offering more attractive. It would have “competitive pricing, a wide selection of games, fast shipping, and a really high-touch experience that customers will love and love,” he wrote.

A representative for Mr. Cohen, who joined the retailer’s board of directors this year along with two other executives, declined to comment.

Even analysts who believe GameStop’s stock has turned into a bubble said the company has some things to do. Mr Pachter, the Wedbush analyst, said George Sherman, who was named GameStop’s chief executive in 2019, had strengthened his finances and given his team time to try a turnaround.

According to Pachter, the shift to downloading games from the internet isn’t as big a threat to GameStop as it looks. The company has a solid business in allowing customers to trade old games so people keep coming back to their stores. For this reason, it is not Tower Records, he argues, referring to the music business empire whose parent company filed for bankruptcy in 2004.

Gamers love to complain about GameStop’s trade-in pricing, saying that the company sometimes pays less than $ 2 for them. However, GameStop is also in a nostalgic niche, reminding people of a time when they were looking for bargains or hunted down for the latest hit gaming title, which entailed a trip to the mall. What if the stores had an aesthetic that could best be described as the opposite of Apple’s sleek, minimalist stores?

Aaron Littman, a Manhattan dog walker, is a regular as the GameStop stores have a good selection of used games that he buys when he visits his 6 year old son. “I get the ones he really likes,” said Mr Littman on Friday before a GameStop on 14th Street in Union Square.

With the future far from certain, GameStop could take advantage of its stock mania by issuing new shares. This would bring in a significant amount of new money that could be used to reduce debt and provide resources to invest in his business.