New York (CNN Business) People still love swiping on virtual candy. But Activision Blizzard warned a slumping global economy and a changing retail landscape are threatening its business.

Activision ATVI The video game industry is turning to digital sales and Activision's reliance on traditional brick-and-mortar retail sales could jeopardize the company's future,said Thursday. The weakening euro and pound are also hurting Activision's bottom line, and the company said those headwinds would continue.

"The environment remains competitive," said Dennis Durkin, CFO and president of Activison, during a call Thursday with Wall Street analysts. "We see a wider range of outcomes for the second half" of 2019, he added.

The company said it expects to bring in sales of just over $1.1 billion this quarter, with non-GAAP earnings per share of 20 cents. That's well below analysts' expectations of $1.4 billion and 40 cents.

Activision recorded $1.7 billion in revenue a year ago, bolstered by expansions in two of its hit video game franchises: "Destiny" and "World of Warcraft." Wall Street didn't expect Activision's forecast to beat last year's numbers, but it was hoping for more than $1.1 billion.

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