Video game retailer GameStop misses quarterly revenue expectations

(Reuters) – Video game retailer GameStop on Tuesday missed Wall Street’s expected quarterly revenue as consumers shifted away from traditional brick-and-mortar stores and toward online shopping.

The company has been struggling with declining sales in its core business of selling new and used video game discs due to a shift towards digital downloads and game streaming.

GameStop CEO Ryan Cohen told investors in June that the company plans to open fewer stores as competition in the gaming console market remains fierce.

The company is also struggling with customers who buy video games and collectibles from online stores.

The company reported revenue of $798.3 million for the second quarter, down from $1.16 billion in the same quarter a year earlier. That was below estimates of $895.7 million, according to two analysts surveyed by LSEG.

Shares of the Grapevine, Texas-based company fell 2% in evening trading.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shinjini Ganguli)