Thu, Jul 03, 2008 | 16:58 BST
Game shares plummet on fears demand has peaked
According to this Reuters report, UK retailer Game’s shares fell as much as 14 percent to a three month low of 225p today, despite the group posting stellar financials for the first six months of the year.
“A stunning trading update,” said Shore Capital analyst John Stevenson, raising his full-year profit forecast by almost a quarter to £139.5 million ($277 million).
“(But) unless we see new hardware launches into the UK market over the next 2 years, which appears unlikely at present, then we believe profits will peak this year and fall consistently over the following three years.”
Game’s first six month of 2008 sales showed sales up by 54 percent over the previous corresponding period.
4 comments
#1
El_MUERkO
03/07/08, 5:01 pm
PSP2 gggggggggooooooooooooooooooooooooooooooooooooo!
#2
SticKboy
03/07/08, 5:05 pm
What a load of old toss.
#3
Killerbee
03/07/08, 5:31 pm
Sure, a new hardware launch might provide a further sales spike, but that isn’t the only thing – software launches and hardware price cuts are certain to happen over the next 2-3 years as well and should certainly help boost the takings of companies like Game.
If anything, the greater market penetration the next-gen consoles achieve, the better software sales should be.
#4
Blerk
04/07/08, 8:12 am
Peak this year? Don’t be an idiot, man. Price drops of the current machines will do more money than new hardware.