Shares in Gamestop have dropped dramatically in after-hours trading, after the company revealed the recent lack of big name titles had done little to entice customers.
The games retailer reported net sales had fallen to $1.6bn (£1.2bn) for its second quarter, down 7.4 per cent from $1.8bn in the same period the year before, while same store sales slid by 10.6 per cent.
The company blamed a lack of intriguing new releases in the games market for the reason for the fall in sales. By comparison, the release of titles such as Batman: Arkhman Knight and Elder Scrolls Online during the second quarter of 2015 had helped to boost figures in the earlier period.
However, the company's collectibles sales performed strongly, increasing by 119.5 per cent to $90m, driven partly by the popularity of Pokemon products.
Gamestop also warned things were unlikely to get much better, issuing guidance that it expects comparable store sales to range from minus two per cent to one per cent during the third quarter, and to range from minus 4.5 per cent to minus 1.5 per cent for its full 2016 financial year.
Paul Raines, chief executive, said:
As expected, the continued growth and increased profit contribution of our non-physical gaming businesses drove our second quarter results. Tech Brands sales grew more than 50 per cent, omni-channel sales increased 16 per cent, collectibles sales more than doubled and year-to-date, more than half of GameStop's operating earnings have come from non-physical gaming categories. These new businesses offset a tough quarter for video gaming and prove that our diversification strategy is succeeding.
Shares in the company plummeted 7.4 per cent to $29.79 in after-hours trading.
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