GameStop Down 5%; Electronic Arts May Undersell With Xbox Subscription

GameStop GME shares fell more than seven percent Tuesday after its supplier announced an online subscription service for games using the Xbox One console.

Electronic Arts EA, which develops and markets game software for Microsoft's Xbox and Sony's PlayStation 4, said it partnered with Microsoft to offer monthly subscriptions for Xbox gamers for $4.99 a month.

The subscriptions include a 10 percent discount on EA content for Xbox One.

Electronic Arts accounted for 12 percent of GameStop's vendor purchases in fiscal 2013. Sales related to Xbox One and PlayStation 4 were the main drivers of GameStop's seven percent sales growth in the quarter ended May 3, the company has said.

GameStop operates about 6,500 retail stores and its shares are down more than 13 percent year to date.

Gamestop traded recently at $43.32, down 5.99 percent. Electronic Arts was down 1.99 percent to $34.39.