GameStop misses revenue estimates on faltering videogame demand

(Reuters) -GameStop missed quarterly revenue estimates on Wednesday as 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 (NASDAQ:) Interactive Software, gave an underwhelming forecast.

GameStop (NYSE:), however, managed to post adjusted breakeven earnings per share for the third quarter, compared with estimates of a loss of 9 cents per share, according to LSEG data.

Its results are the first since top investor Ryan Cohen joined as CEO and chairman in late September, tightening his grip on the ailing company.

Cohen, who had initially tried to steer GameStop aggressively towards e-commerce, has backtracked on some of the plans and relied more on brick-and-mortar stores, using them as places where customers can pick up online orders.

GameStop reported revenue of $1.08 billion for the third quarter, compared with estimates of $1.18 billion, according to five analysts polled by LSEG.

Shares of the company fell nearly 1% in extended trading.