The company that has long made software for the Xbox and the Wii will now be making its own.
The Redmond, Wash., company will start selling games at its online store this summer and will sell them at the new brick-and-mortar store, a game developer said on Tuesday.
The online-only shop, GameStop, will be called GameStop Digital and will carry titles like Call of Duty: Black Ops II and Uncharted 4: A Thief’s End, according to a person familiar with the company’s plans.
The retailer is not yet offering online sales of its games, which typically require the purchase of physical goods from retailers.
The announcement comes as Nintendo’s console is expected to continue selling well for the third straight month, according a report in March.
Nintendo sold a record 1.9 million Wii U consoles last week, a record for the console, according for the company.
GameStop shares were up nearly 6 percent in premarket trading on Tuesday to $6.40, and Microsoft shares rose more than 1 percent to $32.30.
Microsoft’s Xbox division, with its vast portfolio of Xbox One, Xbox 360, Xbox One S and Xbox gaming systems, has long been an attractive buyer of video game consoles.
Game stores and other online-exclusive outlets are seeing an increase in the number of customers who prefer to buy their games on their consoles, according of GameStop.
Microsoft has long said it wants to focus on digital sales of Xbox games, particularly for its Windows Phone platform, where Microsoft has a majority share.