GAME Group, parent of GAME & gamestation, has had a bad trading year with share prices in the group falling by over 90% since November 2010.
Current share prices in the business stand 6.47pence/share. That’s a far cry from the year high of 109.60 pence/share.
Some analysts believe that the company will experience a loss of £10 million, which is horrible reading considering GAME Group had profits of over £17million last year.
Ian Shepard, Chief Executive of Game Group has said:
“The overall video games market remains very challenging, despite strong title launches, and our guidance today reflects the extraordinary economic times in which we are operating.
GAME has outperformed the market, reinforcing our position as market leader, and I am hugely proud of our teams… and we remain well placed to benefit in the medium term both from the next console cycle and the growth in digital and social gaming.”
This raises an interesting debate about the future of dedicated entertainment stores.
Can they compete with supermarkets and the internet? Or is the day fast approaching where entertainment stores will be a thing of the past?