Deathwatch: Game over?

27 September 2011

retail deathwatch The shoppers are staying away from Game, leaving profits looking a little beaten up. The retailer has suffered from a slump in the gaming industry and shoppers generally avoiding the high street.

And the Telegraph report that, despite the doubling in first-half losses, Game are actually looking forward to the future.

The gaming company made a loss before tax of £51.5m in the six months to July 31, compared with a loss of £21.5m in the same period last year, with like-for-like sales dropping.

Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, said: "In a tough sector, Game remains in a particularly difficult place. A lack of new blockbuster games is being compounded by the consumer retrenchment."

game-logoA Deathwatch is, in fairness, a little premature. But we're doing it anyway.

A series of long-awaited releases are due to hit the shelves between now and Christmas, with Call of Duty: Modern Warfare 3, FIFA 12 and Legend of Zelda: Skyward Sword all waiting to be snapped up.

However, if there are better deals online, then Game could continue to struggle. Game are looking to cut some corners and save money by reducing staff working hours and closing some stores.

Doesn't sound great does it?

TOPICS:   Banking   Games   TV   High Street News   Economy

10 comments

  • Steve O.
    I think its drop is actually less than the average for games retail and it actually gained market share in that period. It also expects to make 40% of its turnover in the next 10 weeks, so it's probably not all doom and gloom yet.
  • Rico
    Closing some of their stores would make sense, in Bristol city centre there's 4 or 5 branches within 5 minutes walk of eachother. It's a little bit ridiculous.
  • Phil
    To be honest I just don't care - I hate shopping there now. 10 years ago (when it eb?) it was far better. Now it just caters to young 10 olds who are only interested in COD and 5 year olds wanting a DS. I just use amazon for new now and cex for second hand. Gamestation is exactly the same too since they bought them up...
  • Jerec
    Good riddance, same with HMV, overpriced to joke levels, surely only its ill educated parents that shop there these days?
  • oliverreed
    Me: "Hi, do you have the PS3 bluray remote?" Local Game Store: "Yes, plenty instock" Me: "Cool, what's the price please?" LGS: "£22.99" Me: "Oh, it's £9.99 online, on offer" LGS: "That's the online price sir - in store is" (goes into condescending voice over mode) Me: *[hangs-up]* Another time I pre-ordered a SFIV for Xbox, guaranteed launch delivery date. Unsurprisingly it was late. I phoned up to ask where my game was - you had to pay for guaranteed delivery although I even managed to check out with the promise splashed throughout the process. Generally they suck, I know it's not a charity but if you take a game to trade in and they give you a pittance for it, then place the bloody thing a fiver short of rrp!! I agree it must be the favourite for dimwitted and short-sighted parents/grandparents. A clone town favourite, they really won't be missed.
  • Liam
    I agree. My 12 year old brother goes there because he's too impatient to buy online - despite most stuff on places like Shopto, Zavvi etc are half the price than what they are at Game. If I plan on buying anything, I do a quick Froogle + HotUKDeals search. If it's cheaper than what I expected, then 9/10 I'll buy online.
  • Russ
    Everything is so overpriced in there - I saw someone pay £49.99 for a normal Xbox game a while back in Game. £49.99!! Now people are shopping more online I imagine their business would suffer, since most people don't pay the full RRP! Game have failed to adapt.
  • Matt
    Pre-orders bought online from shop-to, etc... usually arrive a day or so before the release date and are cheaper than Game so i don't buy from them. Also their preowned prices are a joke. I'd rather wait a few days and get a new copy from Amazon for less than their preowned price.
  • Justin M.
    "Posted by Liam • September 28, 2011 at 9:15 am I agree. My 12 year old brother goes there because he’s too impatient to buy online" - or too young to have a credit card and be engaged in e-commerce transactions?!
  • slipperyid
    I agree with most comments, but - surely a large employer going bust would never be cause for celebration, and if they go (taking gamestation with them?) then that would only narrow down consumer choice. The fewer competing shops, the higher the prices will be. How long before play.com/amazon/thehut etc. all raise the prices, just a little teeny tiny bit, as they dont have to compete against a more expensive high-street rival?

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment