Wed, Nov 23, 2011 | 10:51 GMT
Shares in GAME Group down by half following forecast reduction
Shares in the GAME Group have gone down by more than half after it lowered revenue forecasts last week.
Five days after announcing the reduction in its forecasts, shares have plummeted 57.7%, down from 15.75p.
Last night, prices were as low as 6.66p, according to Edge.
GAME CEO Ian Shepard said last week that, despite the decline, the company had still “outperformed the market, reinforcing our position as market leader.”
Analysts have predicted that the launch of Wii U and PlayStation Vita, as well as the potential announcement of a next Xbox, may help GAME next year.
“While the market backdrop is poor, Game continues to take market share. Digital revenues are up 40% YoY, store closures are on track and conversion, pre-owned sales and multi-channel have made progress this year. For 2012/3, the Nintendo Wii U will provide some much need momentum to the hardware cycle, with expectations of a new Xbox being announced next year also building,” said John Stevenson of Peel Hunt.
“Longer term strategy continues to make sense, but it is difficult to see when the short term pain ends,” added Execution Noble’s Sanjay Vidyarthi.
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Posted in: Retail, UK
Tags: GAME Group
4 comments
#1
Patrick Garratt
23/11/11, 12:15 pm
Seems over for not buying games on the internet.
#2
GrimRita
23/11/11, 1:02 pm
GAME have simply failed to change their business model in time. No love for PC gamers, placing too much focus on pre-owned has turned them into nothing more than a Blue Peter ‘bring and buy’ sale!
I cant remember the last time I set foot in one of their stores.
#3
AHA-Lambda
23/11/11, 7:20 pm
@1 – i think its more to do with their a shite shop than anything else that’s causing their troubles
#4
revolting
23/11/11, 7:54 pm
GAME’s decline has been steady and unwavering over the last decade. They used to be an excellent place to buy games 7 or 8 years ago, but now I wouldn’t touch them if you paid me. Their telephone customer service is shocking, their physical stores are horrendous, and their website is diabolical; failing on all three fronts. It’s not even worth getting a free game from them with my backlog of built up reward points.