GameStop revenue drops 17% as shift to digital gaming continues

GameStop reported a 17% drop in Q1 revenue to $732.4 million, as more customers opted for digital downloads over physical games. Hardware and accessories sales fell 32%, and the company announced further store closures after shutting nearly 600 U.S. locations in 2024. GameStop posted a net profit of $44.8 million due to cost cuts but recorded a $10.8 million operating loss, including restructuring charges. It also disclosed buying 4,710 bitcoins as a treasury reserve asset. The company is selling its French business and already exited Canada to streamline operations.