Game group shares slump
December 9th, 2009
Game group shares dropped 20% after the firm announced that sales were down over 10% during 2009 so far.
Despite a number of highly anticipated releases such as FIFA10 and Call of Duty: MW2 this year the firm have failed to capitalise on this, blaming supermarket discounting and the lower than expected sales of some other titles for the drop in sales.
It’s not all bad news though, Game also stated that they have increased market share this year, so while Game may be performing poorly, others are feeling it more. Game put this down to a number of factors, including pre-owned products, loyalty card offers and specialist staff.
Of course Christmas time is when this industry makes most of it’s money, and this year will be no exception. Currently this year looks to be no different, though sales are still down on 2009, so maybe the period won’t be the big saviour Game will be hoping for.
Time will tell for Game, but recent decline for the Wii and the lack of new hardware on the horizon will come as a worry. The company may have to rely on PS3 and 360 software sales (both of which are still strong) for longer than they would be comfortable with.
