GAME Group PLC have today released their financials for the first half of 2010/11, and it doesn’t make pleasant reading. This probably comes as no surprise to people in the know, as GAME has been shedding money for quite some time now.
GAMES’ troubles started in 2009 as the recession caused people to prioritise things like food, housing and ridiculously expensive fuel over gaming. This squeeze on their incomes lead to a spate of articles about widening losses and store closures.
GAME have reported that in the 26 weeks to July 31st, revenue was down 9.6 per cent to £624.6m compared to £690.8m the year previously. This is almost exactly in line with the decline in the UK game market as a whole. Breaking the results down it shows that like-for-like sales in the UK and Ireland declined by 16.2%. Elsewhere the figures made for better reading, with GAME’s international division sales up 4% and online sales growing by 2%.
According to industry publication MCV:
The Group made a loss before tax and non-recurring costs of £18.8m in the first half of the year, compared to a profit before tax and non-recurring costs of £14.5m in the previous half year.
“This profile reflects the performance of the wider market. In the UK, market revenues were down by 17.1%1 and we have seen similar trends in other territories. This has largely been driven by revenue declines from Nintendo products, which enjoyed explosive growth in 2008 and 2009.
Unfortunately these losses are going to lead to more store closures, on top of the closures already announced earlier this year. Currently, the firm runs 635 stores across its two brands, GAME and Gamestation, but the firm now expects to slim down further to 550 stores, meaning that a total of 85 more stores will be closing.
In a statement reported on by MCV, chairman Peter Lewis said “By Christmas 2013 we expect the UK store portfolio to have been reduced to about 550 stores as we reduce store over-lap and drive for greater cost efficiency.”
Tuffcub
I’ve literally just got back from Game on Oxford St. They have the top ten PS3 games, top ten pre-owned games and about six other titles. No back cataogue at all. Compared to the shelves and shelves of titles at HMV a few doors down their stock is pathetic.
Charmed_Fanatic
yeah, if its not in the top 10, they dont have it :(
stueeeee
In Milton Keynes there’s a GAME and Gamestation practically opposite each other, and another GAME round the corner! The only time id buy from there is a spur of the moment decision. After checking the sainsburys price that’s 3 minutes away….
CdmanJak
game has gone commercial anyway half the staff dont even game
3shirts
Compare it to the staff in Gamestation and you notice how true this is. I’ve had some good chats with the Gamestation staff about games and consoles, they are genuinely into it and well informed. Game staff just bleat lines from a script or mumble that they don’t know.
Dany2Step
sauchiehall St. in glasgow is the same deal, GAME directly across from gamestation. in my experience gamestation has always had a better atmosphere, especially with thier display cabinets full of old console cabinets.
but Gforce, the indie shop on union St. is the daddy of them all. jap imports, dollar psn cards for buying stuff from the american psn store, classic psone game still in the rapper, and loads of little figures.
i love that place so much, i wish i had the money to buy from there more often : (
Vaile23
simple business planning really:
1) organise your stores better; sell the assets that are too close
2) don’t charge ridiculous prices for a game, especially ones that are a year old
duncanuaz
I’ve never really liked Game, always preferred Gamestation. I’m not sure why but as others have said Gamestation staff actually seem to like gaming. But Gamestation have only recently came to my nearest town in the last year, before that it was a 15 mile trip to a game shop. My 10 year old loves them though. He has a PS2 and was going through their 3 for £5 and 3 for £10 games and loving finding old classics and every wwe game ever (or so it seemed). They had some fantastic oldies like the Jak games for a couple of quid. For a 10 yr old on pocket money day they were great.
cc_star
They’re the same company
Gamestation is part of the GAME group
duncanuaz
I know, and it’s not logical, but Gamestation just SEEMED more gamey and knowledgeable. That may just be my local Game & Gamestation staff though.
BalramRules
i strongly think that amazon should purchase game =1
fattyuk
Can’t wait to see game go down the pan.
Hate them shops with a passion.
Always makes me laugh when the manager or the staff try talking to you as if they no what there talking about? But when you respond with something they haven’t got a clue.
Game manger being all smart bought latest releases, move and kinetic being released. I respond with asking him has he been following E3, his response was what’s E3 …. Lol… Good bye.
hazelam
well in my local shopping centre there’s a game and gamestation in the same precinct, i’m betting the staff there will be getting worried.
ginrummy24
Sucks to be them, but there’s not much they can do to stop people from pre-ordering or buying used games. With all the reviews online, really, there’s no point in even having a physical game shop. Wish them luck, but I think they’re fighting a losing battle.