Deathwatch: It's not Game over yet, but they're running out of lives
Game are the latest company to come out and admit that they’re in a spot of bother, announcing a drop in sales, admitting that they’re heading towards posting a loss and confessing that they’re in danger of breaching their borrowing covenants. All sounds a bit HMV if you ask us.
Sales at Game Group stores open for a year or more fell by 12.9% in the eight weeks to 7th January, with a 15.2% drop in Britain and Ireland. Even though some huge-selling titles have been released in recent months, Game are blaming a cyclical fall in the video games market, and the lack of major new consoles can’t be helping matters.
Game say that they’re in regular and constructive dialogue with lenders, who remain supportive, but shares in the company have falled by 90% over the past year. Will they be able to turn it around, or stay afloat in time for the next generation of consoles from Nintendo, Microsoft and Sony, or will the game be up before then?