GameStop Goes Digital

NEW YORK (TheStreet) -- GameStop(GME Quote) is going digital, allowing shoppers to get digital upgrades to previously purchased video games, according to a report.

The new program, which will be tested next year, will work with video game consoles like Microsoft's(MSFT Quote) Xbox 360 and Sony's(SNE Quote) PlayStation, Reuters reported.

On Wednesday, Goldman Sachs removed the video game retailer from its conviction buy list, saying it sees "less upside to near-term earnings" after the company reaffirmed its original quarterly financial guidance. It also predicts worse-than-expected video game sales in October.

Earlier in the week, GameStop said it anticipates third-quarter earnings between 27 cents to 33 cents a share and expects same-store sales to decline by 6% to 11%.

Shares of GameStop are flat in Thursday afternoon trading, up 5 cents to $24.48.

-- Reported by Jeanine Poggi in New York

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