Deathwatch: Game announce another profit warning

16 November 2011

retail deathwatch It’s only been a few days since Call Of Duty: Modern Warfare 3 hit the shops but its raging sales success hasn’t been enough to prevent Game from waving madly as they issue a profit warning, their second of the year.

Shares in the game retailer immediately fell 37% to a new low of 12p. Sales figures are down in the year so far by 10.7% and smart-minded analysts have translated that into a forecast of losses of £10 million. Which, when all is said and done, is pretty grim news.

Chief executive Ian Shepherd said: “What we are seeing not just in the UK but notably in France, Spain and Scandinavia is unprecedentedly low consumer confidence,” but he doesn’t seem all that arsed about Game ceasing to exist, adding, “This is a cyclical rather than structural downturn”.

Or is it? Are cheap-as-chips mobile apps eating into the sales of expensive games? Is it all because all the kids are now on the dole? Are games-buyers getting savvier and renting their games or getting them pre-owned. We don’t know, because we’re working from a hermetically-sealed creativity pod that is buried fifty feet below the ground. So why don’t YOU answer our questions instead? EH???

TOPICS:   Games

12 comments

  • Spyro
    Just like best buy and many many other bricks and mortar stores, you could buy cheaper 'new' games at Amazon or in sainsburys etc. Can't comment on their pricing of 2nd hand games though. Generally shoppers are more savvy now and will buy online. Much like other stores, Game have only themselves to blame.
  • Duh
    "Are games-buyers getting savvier and renting their games or getting them pre-owned." Thats a dumb statement as Game would love it if all the games they sold were pre-owned, they make a much larger mark up on pre-owned games (buying them for pennies and selling them for not much less than the new price) than they do on new ones
  • RazorD
    Can we blame their new appalling website? It's one of the worst sites i've ever seen.
  • Riff R.
    Skyrim: From Game £39.99 From Amazon £29.98 From play.com £29.99 I think I know where I'd go. Why spend a tenner more? Its all down to the numbers. Simple, cold, hard numbers.
  • klingelton
    if game can hold on until next year (with the rate of tax due to rise to jersey based warehouses) amazon will be raising their prices and game will become more competitive.... maybe. I guess the business model of selling things for RRP is out the window then...
  • me
    last game i bought from amazon had VAT on it?
  • Spyro
    @klingelton - that only applies to items up to £15 ( i think ). basically lower value items. It doesn't affect video games ie items priced £30 or 40. So it will have no beneficial effect to Game.
  • TC
    @Duh, and not only that, but with pre-owned they don't have to pay anything to the original producer/developer, so they take (pretty much) all the income from it. From what I understand anyway :) But yes, brick+mortar are on their way down, what with online cheaper, and services such as Steam/Origin/GG all offering decent bundles/sales/pre-orders at a better price than B+M, with the advantage of it being instant (ie no having to go to the store and buy it/wait for it to be delivered) access, and impulse buyers are more likely to buy from an instant access service like that.
  • bob
    Origin and steam cheaper? hahahaha how much attention have you been paying? Game on steam new out = £35, on Origin? = £40+. You want bargins shopping for digital downloads? go to greenmangaming and wait for one of their coupons. Granted steam sales can be bargins, GAME doesn't manage the pricing of its older stock properly and often have old games at really steep prices. GAME used to be cheaper they used to sell for £25-30, but now they seem to hike it to match so they pretty much screw themselves out of the deal.
  • oliverreed
    GameStation used to be good before Blockbuster molested them and then Game got hold of and ruined them. I always thought Electronic Boutique sucked however.
  • An.al
    Crap shop, but when they go i've got no reason to have a midweek browse through my rubbish seaside town. There's literally nothing left.
  • Mark C.
    Aside from being stuffed on convenience by Steam and price by the supermarkets and online retailers, their pre-owned sales have been dented by 'online pass' systems that prevent you from accessing multiplayer or certain ingame stuff unless you buy a new copy. Well that and their store design is appalling - too much repeated display for the latest hit games, clueless staff, no clear order so it's impossible to find anything, out of order demo stations and a duller layout than the average stationery store (though admittedly I have a weird fetish for highlighter pens, so I quite like going to Rymans). What they should have done was what Virgin did with their games rooms - turn them into dark, arcadey areas, with lots of tellys, couches and games on big screens, to make people want to go there.

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