GRAPEVINE, Texas (

TheStreet

) -- Looks like the fun and games are over at

GameStop

(GME) - Get Report

.

The video game retailer posted a 32% drop in second-quarter profit and slashed its full-year outlook, as sales of games and consoles continue to sink.

Disappointing results sent shares down 8.5% to $23 before the bell.

While My Video Stock Gently Weeps

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During the quarter, the company earned $38.7 million, 23 cents a share, from $57.2 million, or 34 cents, a year earlier. Analysts expected the company to earn 28 cents.

Sales slipped 4% to $1.74 million, while same-store sales tanked 14%, as the absence of new blockbuster releases is keeping shoppers from spending.

This release schedule isn't expect to get much better. GameStop is now forecasting full-year earnings in a range of $2.40 to $2.64 a share, down from a prior guidance of $2.83 to $2.93 a share.

Last week the NPD Group said

sales in the sector tanked 29%

to $848.9 million in July, in the fifth straight month of decline.

-- Reported by Jeanine Poggi in New York.

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