Şunun için etiket arşivi: digital gaming

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.