GameStop reported a 17 percent drop in Q1-2025 revenue to $732.4 million, reflecting a major shift in consumer behavior toward digital game downloads and away from traditional in-store purchases.
Despite expanding its ecommerce offerings, including digital downloads and merchandise, the retailer continues to lag behind broader industry trends favoring online and cloud-based gaming.
Hardware and accessories sales, which include both new and pre-owned physical games, plunged 32 percent.
With nearly 600 U.S. stores closed in 2024 and more closures planned, GameStop is downsizing its retail footprint.
While cost-cutting led to a $44.8 million net profit, structural challenges persist amid the digital transformation.
