GameStop misses revenue estimates on slow videogame demand , competition

GameStop missed quarterly revenue estimates on Wednesday as competition grew and consumers dialed back spending in an uncertain economy, hampering the videogame retailer’s pivot to a more online-focused model.

Sticky inflation and high borrowing costs have led to uneven spending in the gaming industry. Recently, two major players, including Take-Two Interactive Software, gave an underwhelming forecast.

GameStop’s shares fell nearly 3% in extended trading after the company reported revenue of $1.08 billion for the third quarter, compared with estimates of $1.18 billion, according to five analysts polled by LSEG.