Somehow GameStop Corp managed to pull through its weak final quarter from last year and beat expectations for its Q1 earnings of its fiscal 2016. Apparently someone out there still buys games in a store.

According to the Dallas-based game seller’s most recent financial reports, GameStop brought in $2.06 billion in revenue for its first quarter, earning 3.5 percent higher year over year and beating out its guidance of $2.01 billion. Thanks to its strong numbers, GameStop’s stock jumped roughly 5 percent in after hours trading yesterday.

Although GameStop’s earnings for this quarter are promising, the days of brick and mortar game sellers seem numbered, with digital downloads through services like Steam, Xbox Live and PlayStation Network quickly becoming the dominant platform for consumers. Once internet speeds improve, there will be little reason to purchase physical copies of games.

In a world where people can download whatever media they want even order physical products online and receive them the same day, it is hard to imagine that sellers of digital goods like GameStop can continue acting like it is business as usual, and that is why the company has been slowly shifting away from physical software sales as part of its “on-going sales transfer initiative.” GameStop CEO Paul Raines told investors that the first quarter’s earnings prove that the company is heading in the right direction.

Earlier this year, GameStop announced that it would be closing 3 percent of its video game storefronts, but it would be adding hundreds of new locations to its Technology Brand segment, which includes stores like Simply Mac, Spring Mobile and Cricket Wireless.

While new game sales have been relatively stagnant for GameStop, the company continues earning a significant amount of revenue from reselling used games, consoles, and peripherals thanks to the high margins on those items.

In fact, used item sales make up the largest source of profit for GameStop. This is likely the primary reason GameStop is launching a new retro gaming program, where it will start buying and selling old consoles and games dating back to the original Nintendo Entertainment System from the late 1980s.

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