GameStop reports 9.4% drop in quarterly revenue

GameStop Corp posted a 9.4 per cent decline in quarterly revenue on Wednesday, as consumers cut back spending on discretionary items due to high inflation.

The company launched a digital wallet earlier this year to enable transactions in a marketplace it is building for gamers and others to buy, sell and trade non-fungible token, or NFTs.

With the value of cryptocurrencies plummeting and the temperature setting in, GameStop's digital wallet ambitions face a bleak future.

Gaming companies are facing a slowdown in demand for video games from pandemic highs, raising doubts about their ability to weather an economic downturn next year.

The revenue of GameStop fell to $1.19 billion from $1.30 billion a year ago.

The quarter ended Oct. 29 was the company's net loss of $94.7 million, or 31 cents per share, compared to the previous year's loss of $105.4 million, or 35 cents per share.