GAMESTOP posted a 9.4 per cent fall in quarterly revenue on Wednesday (Dec 7) as consumers cut back spending on discretionary items amid stubbornly 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 tokens, or NFTs.

However, with crypto winter setting in and the value of cryptocurrencies plummeting, GameStop’s digital wallet ambitions face a bleak future.

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

GameStop’s revenue in the third quarter fell to US$1.19 billion from US$1.30 billion a year earlier.

The company reported a net loss of US$94.7 million, or 31 US cents per share, in the quarter that ended Oct 29, compared with a loss of US$105.4 million, or 35 US cents per share, a year earlier. REUTERS

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