GameStop's (GME) - Get Report start of the year was not so fun for investors. But the trajectory of its games business could change real soon.

Shares of the retailer of videogames, wireless devices and collectable toys plunged as much as 6% on Friday after reporting same-store sales at its core gaming retail stores fell 6.2% on weak demand for new consoles and videogames.

Shares closed Friday down 3.90%, or $1.20, at $28.81.

Same-store sales declined 6.6% in its important U.S. market, which has more than 3,900 stores.

Sales at GameStop's international games division, which boasts more than 2,000 stores across Canada, Australia and Europe, declined by a more modest 4.9%. GameStop delivered first-quarter earnings of 66 cents a share, beating Wall Street estimates of 62 cents a share.

GameStop Chief Operating Officer Tony Bartel told TheStreet in an interview that he has high hopes for Nintendo's new console code-named NX, scheduled to hit markets in March 2017. Bartel also didn't rule out Microsoft (MSFT) - Get Report and Sony (SNE) - Get Report  unveiling new, more powerful gaming consoles at next month's E3 gaming convention.

"We expect to hear a lot about virtual reality [next month], which will be a massive category," adds Bartel.

Not all was bad for GameStop in the first three months of the year, as it continued to show promise with the new businesses it's banking on for long-term growth. Sales in the company Technology Brands segment, which includes sales of wireless devices through Spring Mobile's more than 900 AT&T stores, increased 62.2% to $165.8 million. Profit for the segment surged 506% from the prior year to $18.8 million.

By 2019, GameStop expects Technology Brands to deliver approximately $1.6 billion in sales, up from about $265 million last year, fueled by the opening of more AT&T branded stores. Meanwhile, sales of collectibles such as Pop! Games mini dolls rose more than 250%, driven by the acquisition of and interest in Five Nights at Freddy's products, Pokémon trading cards and Minecraft toys at GameStop stores.

Despite success with its newer ventures, shares of GameStop have declined about 27% in the past year, which begs the question: Is Wall Street missing something?

"Historically people have seen us as a seller of videogames, but we are now so much more than that," said Bartel, adding, the company will likely continue to see growth in wireless devices, digital game downloads and with collectables.

For the second quarter, the company forecasted a revenue decline of 1% to 4% and earnings of 23 cents to 30 cents a share. Wall Street had anticipated 33 cents. Given the performance of the videogame market recently, GameStop's results and second-quarter outlook shouldn't exactly come as a surprise.

Gamers spent $509.5 million on video game hardware and software-related products in the U.S. in April, a 15% year-over-year decline from the $598.1 million they spent last year. Hardware sales fell 23% to $142.1 million from $183.7 million, while software sales declined 21%, to $203.9 million from $256.7 million.

Game and console accessory sales were a bright spot in an otherwise bleak April, rising 4% to $157.6 million.