yep, for gamestop, it could be game over.d a big run-up in november and december, some people got suckered into anticipating a good holiday season. and now that rally's been repealed. that said, i think the problems run much deeper than one bad quarter, even a few bad quarters and the stock has room to fall, people. here's the reason, in the last couple of years the nature of the gaming business has changed dramatically in ways that are very bad for gamestop. instead of buying video games in a store, we now have free online gaming like zynga, cheap mobile games like the ones you play on your iphone, i know i do, and the publishing industry has gotten behind digital distribution where you can download video games straight to your console. rather than having to take a trip down to the store, why spend $60 for a video game when at gamestop you can play dozens of terrific games online for free or pay next to nothing for angry birds? these changes are getting more dramatic by the day. i have so much time to play angry birds, in be

gamestop down 6.33%. continue to watch the other names related to whether it is the games themselves or the hardware. nintendo, the wii-u not as popular as some had hoped. sony, activision blizzard, talk about gamestop, interactive art, period this does not apply to my household with my children because they want every game ever in existence. this latest on gamestop i in the other names related to games. let's go over to las vegas. liz: welcome back to las vegas and the consumer electronics show. we migrated to the palms hotel where at&t has a developers conference but perhaps the biggest news is at&t has just unveiled entirely new business involving gadgets like these in here to talk about what it is and what they're doing going into a whole new industry in a way is glen lurie, president of emerging market. speaker company the size of at at&t, we're always looking for new adjacent businesses and when you look at home security, one of those that hasn't done a whole lot. we're now going to go in and launch

gamestop dropping 7% and that's affecting electronic arts, it's down by 2%, as well.lle, back to you. >> thank you. , kcbs financial reporter jason brooks. >>> time for a look at what's coming up later on "cbs this morning." gayle king is in the big chair today live in new york with the latest. good morning. >> reporter: i'm sitting in the big chair. hello. happy new year, frank and michelle. the president is getting ready for a fight over his choice for secretary of defense. we'll talk to a former senate colleague and fellow vietnam vet democrat max cleland about the selection of republican chuck hagel to lead the pentagon. plus the mysterious death of a lottery winner a day after he collected a six-figure payout. that and more when we see you at 7:00. >> thank you. happy new year to you, too. >>> well, the consumer electronics show kicks off today and it's expected to be the biggest show jet. more than 3200 people are showing off the latest gadgets from 150 countries and cnet editor-at-large brian cooley is in las vegas with the top tech trends of 2013. last time we

can we go to gamestop?re itself always seems to be hot but so constituent upon so many moves. new games, new hardware, lot of talk about the wii-u, did not do as well as some people had hop hoped, that would be another factor as to why we are seeing gamestop coming under pressure. david: thank you very much. a fiscal cliff steele was the last straw. more than 90 new members. liz: john boehner was reelected as speake speaker of the house. what issues will be front and center for the new class? peter. peter: we don't have a look at the photos to figure it out, it will be a busy few months ahead. the speaker winning reelection today, 220 votes, six votes to spare. this is why he's going to have to work through march. the sequestered, $100 billion in automatic spending cuts delaying for two months for the legislation this past tuesday, the debt ceiling and continuing resolution, people forget this, the cr keeping them operating through mid-march, the budget and the debt will be the biggest bikes. and the accept

the companies activision and electronic artsmakers of medal of honor and the vendor gamestop which is a really big one. the white house got pushback from the national rifle association after its representatives mead wit met we vice president yesterday. the nra said vice president baden made it explicitly clear that president obama already made up his mind on those issues. carl cameron is live in washington, d.c. now, talking about video games. >> entertainment last night and video games today. not a sign of great concern by the entertainment industry or movies and broadcasters or the video gaming industry about whether or not they will face copsences as a result of the summit by joe biden trying to cur, gun violence. s a big contrast to the folks on the second amendment gun side given the president's desire to ban is semi automatic rifles and improve background checks. the likelihood of an all out ban might be losing momentum. it has become fairly obvious that the legislative bill in the senate is going to have a hard time getting through the republicanly controlled house. that is not

activision, electronic arts, epic games, software ratings board, gamestop and a few others that is supposed:15. back to you. ashley: rich edson, thank you very much. we have many so breaking news for you. the federal budget deficit on track to reach one trillion for a fifth straight year. the federal deficit grew just 260 million in december. tracy: just? ashley: just, for the first three months of the fiscal year, the deficit is now $292 billion. tracy: just. ashley: out of control. all right. much more to come this hour including a special anniversary for one of the banking world's worst possible deals? at least dubious at best. we'll have the details on that. tracy: plus boeing's dreamliner under review by the faa is it still safe? liz macdonald is on this story. as we do every day at this time of day let's look how oil is trading. the dow down about three points. oil down half a percent. $9331 a barrel. we'll be right back tracy: the dow is flat but charles payne is here to teach you how to make some money aniaway. charles looking at a construction equipment giant, titan machinery. i ju

. >>> gamestop shares are tumbling after forecasting a bigger drop in same-store sales from 2012.e down 4.6% from a year earlier. that's the latest from the fox business, giving you the power to prosper. lori: never know looking at interest rates but there is new urgency on the debt ceiling debate after a just released report warning the u.s. government may default on its debt two weeks earlier than initially expected. the bipartisan policy center think tank is warning that the federal government may default on its debt as early as valentine's day. that is no love letter, february 14th. the government hit the $16.4 trillion debt limit on december 31st. the treasury department is taking extraordinary measures to stave off default. you can bet we're all over this one. melissa: i know. stay tuned. sounds like the ultimate case of ingratitude. aig's board is meeting to consider joining a big lawsuit against the u.s. government which says aig's controversial $182 billion bailout cheated aig investors. of course there is a lot more to this story. here's liz macdonald with emac's bottom

we're focusing on gamestop right now, which is really getting slammed in today's trading session.sales down better than 4%, almost 4.5%. after closing 200 stores in november. you can see the percentage loss today, about 6.5%. it's not a pretty chart. there's also been controversy, of course, about the video game business and violence in video games. and that was the one area of weakness for them. internationally, they did better than they did domestically. they had very light foot traffic during the holiday season. back to you guys. >> thanks so much, sue. changing the guard again at sears. sending shares down about 7% this morning. financier eddie lampert back in the driver's seat. can he keep the turn-around plan on track. we're back in a couple of minutes. ♪ ♪ ♪ [ male announcer ] some day, your life will flash before your eyes. ♪ make it worth watching. ♪ the new 2013 lexus ls. an entirely new pursuit. [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whate

last night i put gamestop in the block. we've got the companies that are really, really challenged.y is wells knocked down even more. because people knew they couldn't hit the number. why is best buy not down. people knew they were supposed to really do poorly. this is a trading game, not an investment game. just want to point that out. i would never buy best buy as an investment. it's too challenging. >> did you see the pc sales numbers that came out last night? first annual decline for 2001 last year. holiday sales down for the first time in five years. you had the video game sales down 22%. >> i think it's going to get worse because of the violence in these games. >> apple's down about $4. there's an interesting convergence. we'll talk to rocco later this morning whether or not apple is hurting itself by even having its products carried in best buy. the dovetailing of those two names will be an interesting conversation. >> remember when senegal was discounting itunes cards? jobs said, i don't want that. senegal said, fine. best buy, in this case, neetsds apple. >> more than apple