(Reuters) - GameStop Corp on Tuesday reported a 13.3% fall in quarterly revenue that missed analysts' estimates, as the world's largest video game retailer wrestles with slowing sales of video games and consoles at its stores.
The company said it would stop its quarterly dividend, effective immediately, to save about $157 million per annum.
Shares of the company were down 8% at $7.20 in extended trading.
New hardware sales plunged 35%, with an increase in Nintendo Switch sales more than offset by a decline in Microsoft Corp's Xbox One and Sony Corp's PlayStation 4 console sales, GameStop said.
The gaming retailer has been struggling with shrinking profits due to growing preference of consumers to shift to downloadable videogames instead of buying physical versions from stores.
The company also faces a major threat from the rising advent of game streaming, with technology giants like Alphabet Inc's Google, Microsoft and others getting into the still nascent space.
GameStop's net income fell to $6.8 million, or 7 cents per share, in the first quarter ended May 4, from $28.2 million, or 28 cents per share, a year earlier.
Net sales declined to $1.55 billion from $1.79 billion.
Analysts on average had expected the company to lose 3 cents per share on revenue of $1.64 billion, according to IBES data from Refinitiv.
(Reporting by Supantha Mukherjee and Arjun Panchadar in Bengaluru; Editing by James Emmanuel)
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Updated Date: Jun 05, 2019 03:05:48 IST