NEW YORK (TheStreet) -- GameStop (GME) - Get Report shares are down 2.63% to $37.77 in trading today after the company issued weak fiscal year earnings guidance when it released its fourth-quarter earnings results after the closing bell yesterday.

However, GameStop is looking to expand outside of its core video game selling operations by acquiring different assets as the company evolves into a holding company for a variety of store concepts, according to Bloomberg.

The increased digitization of video games as the industry moves away from physical game discs is spurring the company's push to diversify, as hardware sales fell 30% in the fourth quarter, according to the company's filings.

The company said that its technology brands unit would increase between 350 and 550 stores this year while its flagship GameStop stores will be reduced by 3%. 

"What you're going to see is a significant acceleration of percentage of revenue from non-gaming sources," said COO Tony Bartel. "We're exploring acquisition and partner opportunities that leverage our core competencies."

Separately, TheStreet Ratings team rates GAMESTOP CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate GAMESTOP CORP (GME) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: GME Ratings Report

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