Is GameStop Stock a Buy Ahead of New Game Console Launches?

GameStop (NYSE: GME) stock has lost roughly 90% of its value over the last five years and trades near lifetime lows. The brick-and-mortar retailer has been hit hard amid rapid growth for digital software distribution and a series of failed diversification ventures, and it's not clear that the business has a long-term future. 

But the company's business and its stock performance have also tended to be somewhat cyclical and have enjoyed tailwinds from the launches of new video game platforms. With new console hardware from Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) due for release at the end of this year, is there hidden opportunity in GameStop's beaten-down stock?

Sony's PlayStation 5 console. Image source: Sony.

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Source Fool.com