Game Digital has massive profit warning
The games seller said that their half-year adjusted earnings will be around £30m, which is down from the £43m last year, and £51.3m the year before that. The problem, according to the company, is thanks to trends in the video game market - gamers have upgraded to nextgen consoles quicker than expected, and aren't buying as many games in the process. Or indeed, they're downloading them from their console's online stores, rather than going down the shops.
Chief executive Martin Gibbs said that all this had "only become apparent in December which has been compounded by lower year on year high street and shopping centre footfall", and that "the pre-Christmas period and the winter sale are very important to our customers and with market leading offers we remain well prepared in our stores and online for the remaining peak trading period."
Tom Gadsby at Liberum said: "While a decline in old format sales was expected, the scale has surprised the company while the importance of Christmas trading has hugely magnified the issue."
We can only hope we don't end up with another round of closures and job-losses, like we saw a couple of years ago when it looked like Game was going to evaporate. One to keep an eye on.