Blockbuster released its most dismal quarterly report ever on Tuesday, so dismal that it even included a warning that it may be forced to seek bankruptcy protection. The company reported a loss of $491 million during the quarter, most of it due to a write-down related to its spin-off from former parent Viacom. In-store business, it said, continued to be down due to the elimination of late fees, and online business remained flat as the company was unable to attract more than a fraction of Netflix's subscriber base. The company said that it plans to reduce marketing costs and sell or shutter its smaller rental chains, Movie Trading, Video King and Mr. Movies.