GameStop’s Q1 Revenue Drops Amid Rising Shift to Digital Gaming

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GameStop reported a 17% decline in first-quarter revenue to $732.4 million as consumers increasingly favored digital game downloads over physical purchases at stores, sending its shares down 4.6% in after-hours trading on Tuesday.

The Texas-based videogame retailer, known for its volatile stock and 2021 Reddit-driven rally, continues to face challenges adapting to the gaming industry’s shift towards digital downloads, game streaming, and online shopping.

While GameStop expanded its ecommerce platform to include digital downloads and online merchandise, it has yet to fully benefit from the digital transition. Revenue from its hardware and accessories segment, covering new and pre-owned games, dropped about 32% in the quarter.

After closing nearly 600 U.S. stores in 2024, GameStop announced plans to shutter a “significant number” of additional locations in 2025, highlighting ongoing struggles in its retail operations despite attempts at turnaround.

On a positive note, cost-cutting measures helped GameStop report a net profit of $44.8 million for Q1, a reversal from a $32.3 million net loss a year earlier. However, the company still posted an operating loss of $10.8 million, which included $35.5 million in impairment charges tied to international restructuring.

GameStop recently sold its Canadian subsidiary Electronics Boutique Canada and expects to complete the sale of its French operations within fiscal 2025.

Notably, the company purchased 4,710 bitcoins between early May and mid-June, following a March board approval to add bitcoin as a treasury reserve asset.

Judge Rejects Class Action Lawsuit Over Google Chrome Privacy Claims

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A U.S. federal judge ruled on Monday that people alleging Google illegally collected their personal data from Google Chrome browsers without syncing with Google accounts cannot proceed with a class action lawsuit against Alphabet’s unit.

U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, agreed with Google that claims should be handled individually to determine if millions of Chrome users understood and consented to the company’s data collection policies.

“Inquiries relating to Google’s implied consent defense will overwhelm the damages claims for all causes of action,” the judge wrote. She dismissed the proposed damages class action with prejudice, barring it from being filed again. Additionally, Chrome users were denied the ability to seek policy changes as a group.

Google’s Vice President of Litigation, Sandi Knight, said the company appreciated the decision and noted that Chrome Sync includes clear privacy controls. Plaintiffs’ lawyer David Straite declined to comment.

The ruling follows a 2024 federal appeals court decision instructing Judge Rogers to assess whether reasonable Chrome users consented to Google collecting their data during browsing. Plaintiffs argued that Chrome’s privacy notice misled users by stating they “don’t need to provide any personal information to use Chrome” and that Google would only collect data if users enabled the sync feature.

Judge Rogers had previously dismissed the case in December 2022 but continues to oversee two other privacy lawsuits against Google with different claims. The appeals court decision came after Google agreed in 2023 to destroy billions of data records to settle a lawsuit related to tracking users in Incognito mode.

Case: Calhoun et al v Google LLC, 9th U.S. Circuit Court of Appeals, No. 22-16993.

Qualcomm Opens AI Research and Development Centre in Vietnam

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Qualcomm, the U.S.-based chipmaker, announced on Tuesday the launch of a new artificial intelligence (AI) research and development centre in Vietnam.

The centre will focus on advancing generative and agentic AI technologies across a variety of fields including smartphones, personal computers, extended reality (XR), automotive, and Internet of Things (IoT) applications.

This initiative aligns with Vietnam’s national strategies on AI, semiconductors, and digital transformation. Qualcomm plans to emphasize technology transfer, ecosystem collaboration, and capacity building as part of its operations.

During a meeting in Hanoi, Alex Rogers, Qualcomm’s President of Global Affairs, met with Vietnam’s top leader, To Lam. To Lam encouraged Qualcomm to continue expanding its presence in Vietnam, especially in semiconductor manufacturing and digital infrastructure sectors.