GAME (as in the shop GAME): Retailer Of The Year 2018

Last edited by Hexx on Wed Nov 16, 2011 2:41 pm, edited 1 time in total.

Game Group shares have plunged by more than a third after the video game retailer cut its revenue forecast.

The firm said annual like-for-like revenues would now be "no better than" a 7% fall, after previously forecasting a 3% drop at worst.

"Our guidance today reflects the extraordinary economic times in which we are operating," the firm said.

Ahead of the busy Christmas trading period, Game said sales since January were down 8.6% on last year.

In morning trade, Game's shares were down 7 pence, or 37%, at 12p.

Analysts said the company's poor performance was linked to a lack of new hardware releases this year.

"Software launches have apparently been going well, but tailing off faster than historically. With no new hardware coming through and an obviously weak consumer market, we are placing our forecasts under review." said Investec Securities analyst David Jeary.

In September, Game reported a £51.5m pre-tax loss and its share price has fallen over 70% since the start of the year.

It has seen its business eroded by competition from online-only retailers such as Steam and Amazon, with Game holding on to 19% of the online market.

Game Group, the computer game retailer, has seen its share price collapse this morning after issuing a warning that revenues will be worse than it predicted back in September.

The company originally said like for like revenue in 2011 would be between 0 - 3% worse than 2010. It now says the figure “will be no better than -7%”.

It also expects margins to be down 150 basis points compared to September’s prediction of 100bps although operating costs may be lower than predicted, with cuts saving perhaps as much as £10m.

Game’s chief executive said of the news: "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’s share price stood at 11.9p at 11.16am. Someone buying shares in the company in June 2008 would now have lost 96% of their investment. Over the last five years Game is down 87%.

Brokers are clearly reassessing their positions on the company: Peel Hunt has downgraded Game from buy to hold and cuts its target from 50p to 20p. Investec has put its buy rating (and 45p target) under review.

PostRe: Game Shares "Collapse" by **Cosmo** » Wed Nov 16, 2011 2:41 pm

I'm so happy I didn't buy shares when they sent me the information.

PostRe: Game Shares "Collapse" by KK » Wed Nov 16, 2011 2:42 pm

I think it's probably just a matter of time now. Maybe someone will purchase the brand (like Woolworths or Zavvi) & keep it as an online-only entity, or keep one or two stores open as a token gesture.

PostRe: Game Shares "Collapse" by **Hexx** » Wed Nov 16, 2011 2:43 pm

KKLEIN wrote:I think it's probably just a matter of time now. Maybe someone will purchase the brand (like Woolworths or Zavvi) & keep it as an online-only entity, or keep one or two stores open as a token gesture.

Yeah - but Game's online reputation is in tatters with many gamers after the website/courier changes.

PostRe: Game Shares "Collapse" by **TigaSefi** » Wed Nov 16, 2011 2:46 pm

Could never understand the courier move. It was literally the one thing left that kept them going !!!
It's certainly not the RRP prices they sell games at in-store that keeping them in business :fp:

PostRe: Game Shares "Collapse" by **Some Guy** » Wed Nov 16, 2011 2:49 pm

Take shares in Call of Duty.

PostRe: Game Shares "Collapse" by **Psychopomper** » Wed Nov 16, 2011 2:54 pm

Will it be a good thing when the inevitable happens? I dunno, all they seem to offer is bad advice and overpriced preowned titles (you ever tried getting a new copy of a month old game from them) but at the very least they are a high street presence for the (probably) casual gamer. Time will tell I suppose.

PostRe: Game Shares "Collapse" by **NickSCFC** » Wed Nov 16, 2011 2:55 pm

Would be a shame to see GAME disappear from the high street, the one that's still running in my local shopping centre has been used by me as far back as the NES days

PostRe: Game Shares "Collapse" by KK » Wed Nov 16, 2011 2:58 pm

Easy to blame the economy & online retailers like Amazon, but that doesn't change the fact - for the most part - it's been a poorly ran company for ages.

PostRe: Game Shares "Collapse" by **Delusibeta** » Wed Nov 16, 2011 3:00 pm

Interesting to see many people not realise that share prices do not determine when a company goes bust, or indeed a lack of profits. It's when the cashflow dries up, that's when companies go under.

PostRe: Game Shares "Collapse" by **Moggy** » Wed Nov 16, 2011 3:00 pm

Bring back Electronics Boutique!

PostRe: Game Shares "Collapse" by KK » Wed Nov 16, 2011 3:11 pm

Delusibeta wrote:Interesting to see many people not realise that share prices do not determine when a company goes bust, or indeed a lack of profits. It's when the cashflow dries up, that's when companies go under.

There is the £51.5 million pre-tax loss too. Not sure how long that can continue if they don't turn it around.

PostRe: Game Shares "Collapse" by **Trelliz** » Wed Nov 16, 2011 3:13 pm

The problem is that they seem to only cater to the clueless casual market, who may not be aware of cheaper alternatives. You look at the prices in-store, hell even online and through their own digital distribution system, and they are so hideously overpriced, and with PC content consisting of a single unit containing Bus/Tram/Horse-shit simulators, hidden item games and other junk, I have no reason to go in there at all.

PostRe: Game Shares "Collapse" by **Beans** » Wed Nov 16, 2011 3:15 pm

Considering games buying power, maybe they would have more success if they even attempted to compete with the supermarkets. Worse still they don't even differentiate themselves. I'd expect a specialist store to offer a wide range of back catalogue games but they don't even do that.

PostRe: Game Shares "Collapse" by **TigaSefi** » Wed Nov 16, 2011 3:16 pm

I reckon GRCade could turn it around in a week!!! :lol:

PostRe: Game Shares "Collapse" by **rinks** » Wed Nov 16, 2011 3:25 pm

Analysts said the company's poor performance was linked to a lack of new hardware releases this year.

lol 3DS.

PostRe: Game Shares "Collapse" by **Moggy** » Wed Nov 16, 2011 3:36 pm

TigaSefi wrote:I reckon GRCade could turn it around in a week!!!

Really? We normally get controversy just with a forum Secret Santa, imagine if we were trying to run a nationwide chain of shops. :lol:

PostRe: Game Shares "Collapse" by **TheTurnipKing** » Wed Nov 16, 2011 3:37 pm

Couldn't happen to a nicer company.

PostRe: Game Shares "Collapse" by **gaminglegend** » Wed Nov 16, 2011 3:37 pm

So would gamestation also go bust seeing as they are under the same banner or are they run as two separate companies?

PostRe: Game Shares "Collapse" by **TheTurnipKing** » Wed Nov 16, 2011 3:39 pm

Game Group

Should hit 'em all, I imagine.

GAME (as in the shop GAME): Retailer Of The Year 2018

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