GameStop reports fall in third-quarter revenue as consumers curb spending

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(Reuters) – Videogame retailer GameStop (NYSE:GME) reported a fall in third-quarter revenue on Tuesday, hit by a continued slump in spending at its brick-and-mortar stores as consumers shift to online platforms.

The company’s third-quarter revenue fell 20% to $860 million, compared with $1.08 billion a year ago.

GameStop has been grappling with a slower turnaround of its main business as it struggles to ramp up sales of videogame hardware and collectibles, while facing stiff competition from online retail giants such as Amazon.com (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).

It is also burdened by an uncertain macroeconomic environment as consumers cut back on discretionary spending owing to stubborn inflation and a slow recovery in the gaming market.

The company reported net income of $17.4 million in the third quarter, compared with a net loss of $3.1 million a year ago.

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