Sept 10 (Reuters) - Videogame retailer GameStop ( GME )

reported a fall in second-quarter revenue on Tuesday, as

consumers moved away from traditional brick-and-mortar stores to

online purchasing.

The company has been struggling with declining sales in its

primary business of selling new and used video game discs due to

a shift towards digital downloads and game streaming. Several

customers also buying games and collectibles through e-commerce.

GameStop ( GME ) CEO Ryan Cohen told investors in June the company

intends to operate a smaller number of stores as competition

remains intense in the gaming console market.

The company continues to face a near insurmountable barrier

to its planned return to growth including an ongoing hardware

sales decline as streaming services proliferate and its total

lack of any strategy to enter new categories with growth

potential, analysts at Wedbush said in a note on Friday.

The company reported revenue of $798.3 million for the

quarter ended Aug. 3 compared with $1.16 billion a year earlier.

Two analysts polled by LSEG were expecting a revenue of $895.7

million.

Shares of the Grapevine, Texas-based company fell 1.3% in

extended trading.

The stock has seen significant volatility this year after

online stock influencer Roaring Kitty, whose real name is Keith

Gill, returned to X.com after a three-year hiatus, with a

cryptic meme that was widely seen as a bullish signal for

GameStop ( GME ).

He was a key player in the 2021 rally in GameStop ( GME ) and

other so-called meme stocks that was fueled by individual

investors on Reddit's ( RDDT ) WallStreetBets forum.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by

Shinjini Ganguli)