GameStop's revenue falls 14% as digital downloads replace physical games
Business
GameStop just reported a 14% drop in its latest quarterly revenue, with numbers falling from $1.28 billion to $1.10 billion.
The main reason? More gamers are choosing digital downloads over buying physical games, which also led to hardware and accessory sales taking a big hit.
GameStop is shifting focus toward trading cards and collectibles
To adapt, GameStop is cutting costs and shifting focus toward trading cards and collectibles.
CEO Ryan Cohen has trimmed SG&A expenses by $41.0 million for the quarter, and the company might sell its French stores.
Even with the revenue dip, net income held steady at around $128 million, just a slight drop from last year.