NEW YORK: Videogame retailer GameStop says it has cut an unspecified number of jobs to reduce costs and reported lower fourth quarter revenue amid rising competition from eCommerce firms and weak consumer spending in an uncertain economy.

Shares of the Grapevine, Texas-based company tumbled 16% in extended trade.

“An increasing mix of digital downloads is hurting physical retail, and there is simply no reason to go to the store if a consumer can just order a game and download it immediately,” Wedbush Securities analyst Michael Pachter said.

“Revenue is highly unlikely to rebound unless management figures out a way to drive store traffic.”

US videogame publishers Take-Two Interactive Software and Electronic Arts also delivered lacklustre earnings last month.

This comes as the gaming industry faces pressure from high borrowing costs, sticky inflation and a slowdown in demand from pandemic peaks.

GameStop’s recent cost-reduction measures also included an exit from its European operations in Ireland, Switzerland and Austria.

As of Feb 3, the company had about 8,000 full-time salaried and hourly associates and between 13,000 and 18,000 part-time, hourly associates worldwide.