Inside GameStop's ambitious 3-point plan to save itself from destruction

GameStop is, by far, the world's largest video game retailer, with more than 5,000 stores worldwide.

The company had been in steady decline for years, but the bottom has dropped out of its stock price this year — from $16 a share in January to below $4 by August.

With the stock plummeting in value, GameStop got a new CEO: George Sherman.

Back in June in his first earnings call with the company, Sherman laid out his three-point plan for GameStop's resurgence.

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On Monday, GameStop stock's value hit its lowest point in nearly 20 years of trading: It closed the day at just $3.71 a share.

In January, just eight months ago, the company's stock was hovering in the $15-to-$16 range. It's been in steady decline ever since, however, as its C-suite reshuffled and a new CEO was appointed: George Sherman.

The reason for that steady decline is simple: Like Blockbuster Video and Tower Records before it, GameStop faces major challenges to its business model from the internet. As more people buy video games through digital storefronts, fewer buy games on physical discs from GameStop.

But Sherman remains steadfast that he has a plan to turn the company around — a plan he presented back in June during his first investor call with the company. Here's what he had to say: