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GameStop Forecasts Consoles Will Attack Retail Sales

November 22, 2016

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GameStop, the world’s largest retailer of video games, forecast a bigger-than-expected decline in same-store sales for the crucial holiday quarter, as more players switch to downloading games on their consoles.

The company said on Tuesday it expected sales at established stores to fall between 7% and 12% in the fourth quarter.

Analysts on average had expected a 7.1% fall, according to research firm Consensus Metrix.

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GameStop’s (GME) net income fell to $50.8 million, or 49 cents per share, in the third quarter ended Oct. 29 from $55.9 million, or 53 cents per share, a year earlier.

The company’s net sales fell to $1.96 billion from $2.02 billion, the third straight decline.

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The numbers were in line with the company’s preliminary estimates released earlier this month.

GameStop had then cut its full-year profit forecast, citing lower-than-anticipated sales of games released in October.