Game issues pre-Christmas profit warning
Game, the retailer who added a marketplace to their website in March this year to boost sales, has issued a profits warning just day’s before Christmas.
Game cite challenging conditions in the UK retail market with total sales for the video games market down 13.5% year on year. The also add that sales and overall margins have been impacted by a faster than expected decline in the market for old format content as well as a slower than anticipated switch to the newer Xbox One and PlayStation 4.
Martyn Gibbs, GAME Digital Chief Executive Officer, 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“.
It may seem strange to give a profits warning immediately before the busiest two trading days of the year, but no matter how good last minute sales on the High Street are the damage is done.
Game are now forecasting operating profits of £30 million compared with £34 million for the same period in 2014.