November 15, 2012 / 4:00 PM / in 5 years

CORRECTED-UPDATE 1-GameStop revenue falls in 3rd quarter

(Corrects same-store sales in 2nd paragraph to down 7 percent from down 8 percent)

SAN FRANCISCO, Nov 15 (Reuters) - GameStop Corp, the world’s largest retailer of videogame products, said its sales dropped in the third quarter due to slowing videogame hardware and software sales.

The company said it expects comparable store sales to range between down 7 percent and up 1 percent in the fourth quarter.

Sales of traditional videogame products such as consoles have been pressured globally by lower-priced online offerings and as gamers spend more time on tablet computers and phones.

Total U.S. sales of videogame software in October saw a 25 percent drop from a year ago following a similar trend throughout the third quarter, according to a report by market research firm NPD.

Games software sales were down 25 percent last month, the report said.

GameStop has weathered the trend by focusing on selling used games to console owners and expanding its digital and mobile offerings, including sale of iOS and Android devices in some stores.

The Grapevine, Texas-based company said sales fell 8.9 percent to $1.77 billion. Analysts were expecting sales of $1.79 billion, according to Thomson Reuters I/B/E/S.

Adjusted earnings were $47.2 million compared with $53.9 million a year ago. It reported adjusted net earnings per share of 38 cents.

The company’s shares rose 5.7 percent to $24.84 in morning trading on the New York Stock Exchange. (Reporting By Malathi Nayak; editing by John Wallace and Maureen Bavdek) (( )

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