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?
Source: ProactiveInvestors / The Guardian
Crocadillian
I think theres definitely a place for a specialist game store, but they haven’t positioned them right, and aren’t offering the right prices and services that would encourage more business. It’s almost a shame, almost…
SH Number 7
The stores are moving more into buying points and game time cards (for online/browser games) as a lot of people have distrust in using credit cards online, especially since sony being hacked. But i don’t think that will help.
AG2297
I blame some of the worst management (I’m talking high up management rather than store management) I’ve ever seen with terrible ideas for pressure selling. They seem to live on another planet.
Awayze
Maybe they should drop their prices to compete with Amazon and play.com.
Awayze
Also the staff is annoying, I don’t need help every 2 minutes!! I just want to look, taking earphones out and putting them back in is a chore -_-
Although the GAME in Manchester has ok prices. Cheaper than HMV.
MrTwP
In retail you have to approach every person you see, if not the management tell you you’re not doing your job and give you a good shouting at. it’s annoying but it’s not the staffs fault
Mike
I see a lot of hostility towards the GAME group. Yeah, I don’t like their pressure selling techniques and some of their prices aren’t the cheapest but you can find some bargains and their online shop is great and always top notch service. I’d never wish for their closure and those that do clearly don’t care about people’s jobs or the loss of one of the few remaining bricks and mortar games shops. If we were just left with Grainger Games, CEX and HMV, it wouldn’t make things better, it would make it worse.
Forrest_01
Bang on Mike – Competition is healthy.
Plus, what would i do with the points on my Game card?? :O
Grey_Ghost13
I wouldn’t wish their closure, but cansee why they are failing. Yes we need competition, but what happens whenthe competition elsewhere is too good and they don’t seem to be able to counter act that competition.
Forrest_01
It’s true actually – They are still trading like they are ahead of the pack, when in fact they are SOME way behind.
My thoughts? Stop pushing pre-owned down peoples throats at every sale, reduce the prices of pre-owned & stop being so greedy (prices of pre-owned should already have dipped a bit due to online passes carrying an additional cost, but not in Game it would seem) & work out better deals with publishers so that you can edge out the competition on new sales. Exclusive DLC that amounts to nothing, or a flashy cover just isn’t going to cut it for me.
Game probably needs to evolve so that it stays current – At the moment, most stores are stuck at the turn of the millenium when things were good. Things are not so good right now.
Mike
Problem is, everyone is struggling, not just GAME. Don’t forget HMV are still on shaky ground and Grainger Games are said to be not doing well either. If GAME were to go, the rest would most likely follow soon enough if you ask me.
gazzagb
You only like them Mike because you’re mate gives you his employee discount card or something! :P
Mike
Shhhhhh ;) Although in all seriousness, my viewpoint would be the same even if my flatmate didn’t work for them
BryOnRye
GAME outsold the market and are making a £10 million loss?
TheDemocrodile
worrying how they consider themselves market leaders isnt it? the Sirius Cybernetic Corporation has nothing on them at all
MrTwP
In my area i can see one GAME store from standing outside a different GAME store, GAME is the only company stupid enough to do that.
The Lone Steven
The only reason why they are dominating the high street as in some towns, they are the only gaming retail shop. I prefered my local Game before it was closed as you could actually speak to the staff about games and was fanboy free.
Game group, if you want more customers, match the price of your bleeding site in store, stop knocking a few pounds of the full RRP of preowned as it defeats the point of getting preowned as most people get it as it’s supposed to be cheaper. Better trade in prices and more friendly staff. Do that and you may see more customers dumping Amazon/Morrisons for you. And do a weekly deal. ;)
My local gamestation doesn’t seem to be able to make sure the games are in the correct parts of the shop as the other day, they had new releases under a section called up to half price and not a single game was less then £42.
Omac_brother
I use GAME a lot. Both Online and In store. We have 2 GAME stores almost next to each other (about 20 feet away from eachother) in Stoke on Trent and both offer a really good service and the games are often cheaper than the competition (CEX included, which does not sell new games. Online passes becoming the norm, I try to stear clear). But the last 2 orders I placed online arrived a week late so probably going to be stearing clear from now on.
Mathematicool
I’m not surprised. I shopped there a few times this year and each time there’s been some issue with them. I avoid them whenever possible nowadays.