With all the excitement over the console wars and HD entertainment, you'd think a retail company like Best Buy would be doing well, if not better than ever. 

Yet investment analysts at Bear Stearns Companies Inc. have recently downgraded Best Buy's status from "outperform" to "underperform", meaning that the retailer stopped short of the industry average and prospects are looking rather down.

Christopher Horvers, an analyst at Bear Stearns wrote to clients that "a slowdown in the product cycle" is hurting sales, along with discount rivals such as Wal-Mart charming consumers in their favor.  The weak economy is also a factor, as the "discretionary nature" of Best Buy's products could drive away cautious spenders and leave the company in a vulnerable state.

December sales reports have yet to be filed, but Horvers has already dismissed Best Buy's winter rush as "the last hurrah in the stock."  At best, the booming video game industry and holiday frenzy only provided a temporary boost for the company, hardly making up for its overall dismal performance.

In 2007, Best Buy shares dropped a total of 4.8 percent, from a high point of $53.38 to $47.14 as of yesterday.