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GameStop Shares Tumble 7% on Weak Video Game Sales

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(Reuters) – GameStop, the world’s largest retailer of video games, reported a lower-than-expected quarterly revenue, hurt by lower sales of new gaming software and hardware.

The company’s shares (GME) were down 7.2% at $29.85 in after market trading.

GameStop’s second quarter net sales fell to $1.63 billion from $1.76 billion, missing the analysts’ average estimate of $1.72 billion, according to Thomson Reuters I/B/E/S.

Video game sales were impacted by a lack of new titles to offset strong title launches in the year-ago quarter, such as “Batman: Arkham Knight” and “Elder Scrolls Online,” the company said on Thursday.

Sales from the new video game hardware business fell about 33% to $216.4 million for the second quarter ended July 30.

Net income rose to $27.9 million, or 27 cents per share, in the quarter, from $25.3 million, or 24 cents per share, a year earlier.

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Excluding items, the company earned 27 cents per share, in line with analysts’ estimates.