Game profit loss

[Lee]

For the Americans Game is the UKs biggest retailer of video games.

The Christmas period Game posted a 17% profit loss from the same period in 2008. Baring in mind that 2008 was a shocker of a Christmas for Game, things are looking bad. Or is it?

There's various theories rocking about as to the overall loss which I pretty much subscribe to a bit of all:

1) Supermarket prices are stupid!

Why would I pay £50 for CODMW2 at Game when I can get it for £26 at Sainsburys?

2) The recession!


I don't subscribe to this one, last year the recession was worse but we had a bigger profit.

3) People can't be bothered with gaming anymore

This is the big worry, if supermarkets also post a loss in gaming it has been predicted in some newspapers that we may see another crash. I doubt this is very likely for I think it's number 4:

4) No new stuff!

2006 we had 360, Wii and PS3....three years on everyone who wants those consoles has bought them. Thus a drop in sales. Duh!

 

[Loveless]

Are Game the biggest anymore? I thought Gamestation overtook them a while ago. I went through both stores a couple of days ago and Gamestation had around 4 times the people in store.
Anyway I don't think it's about price. Dedicated game stores are always far cheaper than multi purpose stores because they keep their prices updated. I never buy games from anywhere else. I actually think it was because there was so little worth buying this Christmas.

MOD NOTE So I don't spam- Game owns Gamestaion

 

[Dave]

You are completely correct, Lee.

Game are the biggest retailers of video games in the UK but this does not come as a shock to me. As you have noted, supermarkets are fast becoming people's choice when purchasing new games. You can add that to the fact that you can pick up a game off of Amazon for so much cheaper than Game has it. Amazon is not even dedicated to games and it is probably trouncing Game. When it comes down to it, you have it right. People are definitely not going to pay through the nose for something that they can get for much cheaper wither online or at a supermarket.

I work in a supermarket and deal with electrical sales and I can tell you that, in my branch at least, supermarkets are not making a loss when it comes to video games. It appears that we are making a killing at the expense of dedicated retailers because of the convenience and the prices that we can give. The recession has little to do with it except the fact that people are a little more stringent with their money and have been looking for cheaper alternatives.

Personally, I blame the companies themselves for this happening. It is clear to me that they are not taking the competition seriously and more so than that are keeping their prices too, hence pricing themselves out of the competition and probably out of business before too long. The only thing that places like GAME have over supermarkets and the internet is trade in convenience but even that is a failing endeavour. It is a mark of the way the industry is going and GAME need to realise that.