- GameStop (NYSE:GME) reported a 17 per cent drop in Q1 2025 revenue, US$732.4 million for the quarter, down from US$881.8 million a year earlier
- GameStop’s hardware and accessories unit, which includes both new and pre-owned video games, saw a steep 32 per cent drop in sales during the quarter
- Despite the revenue slump, GameStop managed to turn a profit, reporting net income of US$44.8 million compared to a net loss of US$32.3 million in the same period last year.
- GameStop stock (NYSE:GME) last traded at US$30.15
GameStop (NYSE:GME) reported a 17 per cent drop in Q1 2025 revenue, a sign of the continued challenges facing the video game and merchandise retailer as consumers increasingly favour digital downloads over physical purchases. The original meme stock posted revenue of US$732.4 million for the quarter, down from US$881.8 million a year earlier.
The decline reflects a broader industry trend as gamers move away from brick-and-mortar stores in favor of digital platforms, game streaming, and online shopping. GameStop’s hardware and accessories unit, which includes both new and pre-owned video games, saw a steep 32 per cent drop in sales during the quarter.
Despite the revenue slump, GameStop managed to turn a profit, reporting, in a media statement, net income of US$44.8 million compared to a net loss of US$32.3 million in the same period last year. This improvement was largely attributed to aggressive cost-cutting measures, including the closure of nearly 600 U.S. stores in 2024 and the announcement of a “significant number” of additional closures planned for this year.
The company also reported an operating loss of US$10.8 million, which includes US$35.5 million in impairment charges tied to its ongoing international restructuring. As part of this effort, GameStop sold its Canadian subsidiary and expects to finalize the sale of its French operations during fiscal year 2025.
In a bid to modernize its business model, GameStop has expanded its ecommerce platform to include digital game downloads and online merchandise. The company also made headlines with a bold move into cryptocurrency, with a 4,710 Bitcoin purchase using cash reserves.
About GameStop Corp.
GameStop Corp. is a U.S. video game, consumer electronics and services retailer. The company operates across Europe, Canada, Australia and the United States. It sells new and second-hand video game hardware, physical and digital video game software, and video game accessories.
GameStop stock (NYSE:GME) last traded at US$30.15 and has fallen 3.80 per cent since the year began, but has climbed 18.42 per cent since this time last year.
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