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GameStop's revenue drop obscures a more complicated earnings picture

9/1/2026

The revenue line is falling at GameStop. The income story is not, and that gap is the real development ahead of full second-quarter results due 8 September 2026.

The company has projected net sales of $780m to $800m for the quarter ended 1 August 2026, down from $972.2m in the equivalent period a year earlier, while guiding operating income to $150m to $170m against $66.4m in Q2 2025.

Three factors explain the revenue contraction, all of them supply-side rather than demand-signal: the Nintendo Switch 2 launch fell in the prior-year quarter and inflated that base; planned store closures have reduced the selling footprint; and the company exited its French operations through a sale.

Strip those items out and the decline reads less as structural deterioration and more as deliberate footprint reduction. The income picture is more striking.

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