GameStop (NYSE:GME) shares dropped more than 4% intra-day on Wednesday after the video game retailer posted quarterly results that fell short of expectations, underscoring the company's ongoing struggle to adapt to the shift toward online gaming purchases.

GameStop has attempted to expand and modernize its e-commerce capabilities, offering exclusive game editions and collectibles online, but continues to face stiff competition from large digital retailers such as Amazon. The stock has also remained volatile following its unusual surge during the 2021 meme-stock rally.

For the third quarter, the company reported earnings of $0.13 per share, trailing the consensus estimate of $0.18. Revenue declined to $821 million from $860.3 million in the prior-year period, missing expectations of $893.64 million.

Operating expenses were reduced to $221.4 million from $282 million, helping the company return to an operating profit of $41.3 million, compared with a loss of $33.4 million last year. Adjusted operating income reached $52.1 million.