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GAME's Share Price Drops By 38% After It Experienced Challenging Conditions

Not game over yet though.

GAME Digital’s price share fell by 38% today after it confirmed that revenue would not be as high as expected, and that it had been facing a challenging market this year. While the 40% drop is quite a concerning figure it has followed a general trend where the company’s share price has been generally falling since the beginning of Autumn. The current share price of 128 is the lowest the retailer has seen in a couple of years.

GAME’s Chief Executive Martin Gibbs said:

“The trading conditions in the UK video games market have been challenging. The switch over from the older gaming formats to PlayStation 4 and Xbox One software has impacted profitability across the UK market. The extent of the impact of this switch over has only become apparent in December which has been compounded by lower year-on-year High Street and shopping centre footfall.”

The company has stated that sales of last gen games has already dropped by £30 million, and the Christmas holidays haven’t seen as much trading as the company predicted.

Source: BBC/London Stock Exchange 

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13 Comments
  1. Avenger
    Member
    Since: Oct 2012

    Probably because everyone has been shopping elsewhere. Who wants old PS4 games for £50, much less new ones, when they can be bought for much less from Amazon, Shopto, Zavvi, and Argos.

    GAME have been taking the piss 90% of the time. The remainding 10% they actually do decent deals. It’s funny when they use words ‘sale’ and ‘only’ for a 39.99 price tag, you know then they’re not going to get far.

    Comment posted on 23/12/2015 at 19:08.
  2. jeanhenry
    Member
    Since: Feb 2015

    Have to say it’s hardly a surprise. Maybe more going digital this gen hasn’t helped but I suspect the main culprit are Game themselves. Rarely a month goes past without some article how they’ve screwed up again in exactly the same way as the time before and the time before that and so on. Also have the problem that a lot of their income is not money but disc’s and you can’t exactly pay suppliers with these! Clearly nearly going bust did not give them the kick they needed to get their act together. I’ve not speed there for years so no problem them going to the wall. In fact it’s needed, let them go and bring back Future Zone. Oh the good old days :)

    Comment posted on 23/12/2015 at 19:08.
  3. Carrot381
    Member
    Since: Dec 2013
    Comment posted on 23/12/2015 at 19:29.
    • AngryCoward
      Banned
      Since: Sep 2015

      This comment is hidden.

      Comment posted on 24/12/2015 at 07:41.
      • Amphlett
        Member
        Since: Jul 2009

        You appear to be alleging market manipulation, which is an illegal act. I hope you have proof.

        Comment posted on 24/12/2015 at 09:39.
      • The Lone Steven
        Never heard of him.
        Since: May 2010

        CRAP! You’ve rumbled our shameful secret! TSA does have an agenda. We’re secretly part of the world domination of biscuits,PG tips and coffee league and secretly plot to take over the industry via biscuits, PG tips and coffee!

        Comment posted on 24/12/2015 at 15:08.
  4. gazzagb
    Master of speling mitakse
    Since: Feb 2009

    I’m amazed that they even made it out of administration, I don’t think I’ve bought a game from a shop for nearly 10 years.

    Comment posted on 23/12/2015 at 19:39.
  5. pitbullmern
    Member
    Since: Nov 2009

    When they had the nerve to charge £54.99 for fallout 4 on xbox one and ps4 instore on release day they lost any custom they would ever get from me. When I questioned the price hike they said it was to cover overheads of running a store and that the online section is a totally separate company. I laughed in his face and walked out and bought online for a lot cheaper. No wonder they are going to the dogs again. This is what happens when they have no competition on the high street and treat customers as idiots.

    Comment posted on 23/12/2015 at 19:40.
  6. JR.
    Member
    Since: Apr 2013

    People are smarter these days. They dont just walk into a shop and buy something there and then. They have access to the internet on their phone and can search for the best price. They probably dont have to search hard either. Amazon are usually much cheaper than Game. The only time I ever buy anything from Game is when there is an unbelieveably good deal to be had. Its like B&Q… You go to the store to check the item out and then order it somewhere else for half the cost. I believe B&Q are closing many of their big warehouses next year for that reason. Game will probably go the same way.

    Comment posted on 23/12/2015 at 20:28.
    • Amphlett
      Member
      Since: Jul 2009

      I can’t recall what my then economics teacher referred to this as but in essence it’s something like “perfect market knowledge”, where the customer already knows the price of items and their competing goods, or is able to easily find out that information. This was back in around 1989, well before the mainstream thought of checking prices on computer or something weird called a “mobile phone”.
      Whizzzzzz along to the end of 2015 and the mere thought that a physical shops exists which sells computer games at inflated prices to customers who are, when you take in to account the typical demographics, tech savvy, is at odds with the idea of “perfect market knowledge”.

      Comment posted on 24/12/2015 at 09:54.
  7. beeje13
    Member
    Since: Jan 2010

    Last time I bought from Game was Watch Dogs and that’s only because it was an exclusive edition with extra content which turned out to be worthless. I wouldn’t do that now as I don’t agree with the practice, now it just comes down to who has the lowest price out of trusted online retailers.

    Comment posted on 23/12/2015 at 22:09.
  8. Starman
    Member
    Since: Jul 2011

    Anyone could see this coming a year ago. They persisted with their new rrp’s of £50-£55 for new gen games, up from £40-45 last gen, people happy to pay that have gone all digital, and the rest are getting their games for around £20 less than that from online retailers.

    Comment posted on 23/12/2015 at 22:19.
  9. The Lone Steven
    Never heard of him.
    Since: May 2010

    Or maybe, Game. You are getting your arse kicked by your prices, your laughable focus on pre-owned and making it more expensive to buy games pre-owned then new. Seriously, i’ve seen PS3 games costing less on your site brand new then a pre-owned copy and well, you’re kinda crap. Good for PS3/360 games due to the 3 for 2 deals and it being that time where those platforms are slowly retiring or retired but PS4/X1? Yeah, you need to try harder. Amazon? Reasonable prices. CEX? Risky but cheaper. It’s kinda stupid to expect people to pay £60 for a game that is literally half the price on amazon. Hell, even PSN’s prices are somewhat decent compared to Game. I predict they will crash in 2016 and if they are not saved(again),they will die as a business. If they do get saved, they won’t learn their lesson and just blame it on digitial or the last gen. Only, the last gen has sod all to do with sales as it barely affects the current gen.

    Comment posted on 24/12/2015 at 03:16.

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