GameStop (GME) shares are in focus following announcements from major video game and video game console makers at this year's Electronic Entertainment Expo, or E3. The game retailer, whose stock is down nearly 16% year-to-date, has faced headwinds in recent years due to the shift to digital game downloads, yet analysts from Baird and Loop Capital have maintained bullish views on the shares following several announcements from console makers this week.

WHAT'S NOTABLE: On GameStop's most recent quarterly conference call in late May, the company backed its fiscal 2017 new hardware sales view of unchanged to up slightly year-over-year. The retailer said at the time that it "set records" with the Nintendo (NTDOY) Switch launch and that it expects second quarter results to be driven by demand for the Japanese game maker's new console.

NEW XBOX A POSITIVE: Baird Analyst Colin Sebastian maintained an Outperform rating and $24 price target on GameStop in his ongoing coverage of gaming stocks during E3 this week, noting that Microsoft's (MSFT) unveiling of its new console, the Xbox One X, is potentially positive for the retailer, as new console launches tend to drive higher-margin trade-in volumes. The analyst noted that, compared to Sony's (SNE) PS4 Pro, the Xbox One X has similar processing speed but greater graphics capabilities.

FURTHER SWITCH ADOPTION: Following Ubisoft's presentation on Monday, during which the French game maker unveiled "Mario + Rabids Kingdom Battle" for the Nintendo Switch, Sebastian said that the game, which is slated for an August 29 release, could provide another "must-have" attach title for the console, which is a potential positive for GameStop. After Nintendo's presentation the next day, the Baird analyst also said that the company's new game announcements would be positive for the retailer, noting that the upcoming "Super Mario Odyssey" launch in October will provide a "third tent pole" Switch title alongside "Zelda" and "Mario Kart." Sebastian added that Nintendo's announcement of upcoming "Kirby," "Yoshi," and "Metroid Prime" titles for the Switch should drive continued adoption of the console, which is also a positive for GameStop.

LOOP LIKES GAMESTOP DESPITE "LUKEWARM" E3: Meanwhile, following the near close of E3's events, Loop Capital analyst Anthony Chukumba kept a Buy rating and $28 price target on GameStop, "given current valuation levels." Still, the analyst said his firm has "decidedly mixed feelings" after the conference, saying that he was happy to hear about the growing lineup of Nintendo Switch titles, but was "nonplussed" by the Xbox One X, which he views as "evolutionary" and not "revolutionary." Chukumba added he doesn't expect the new Xbox console to drive significant incremental volume.

PRICE ACTION: GameStop shares are down 1.76% to $21.25 in afternoon trading.

OTHERS TO WATCH: Shares of Best Buy (BBY), another major game retailer, slipped about 2.1% in the afternoon. In addition, game makers Electronic Arts (EA), Activision Blizzard (ATVI), and Take-Two (TTWO) are all marginally higher in afternoon trading.