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Analyst: GAME could lose £2 million over ME3 siutation

Friday, 2nd March 2012 09:57 GMT By Johnny Cullen

Not stocking Mass Effect 3 could cost GAME as big as £2 million, one analyst has said.

Speaking to The Guardian, Singer Capital Markets’ Mark Photiades said the retailer could see an added £6-£7 million lost in revenue.

“Working on the assumption that a decent triple-A title sells 0.8m-1m titles in the first few weeks of release in the UK and assuming GAME has around 20 per cent share, we calculate that by not stocking Mass Effect 3, GAME is potentially missing out on around £6m-£7m of revenues in the UK given the title will retail for £39.99,” he said.

“With new software margins of around 24% this could result in £1.5m-£2m of lost gross profit in the current year. It is also worth noting that margins will suffer as a result of the reward card points being offered in compensation.

““We estimate this could amount to another £0.3m of forgone gross profit as typically pre-orders account for around 30% of initial sales. So in total there could be £2m-£2.5m of lost UK profit in a year where we are already forecasting losses of £8m.

“This latest development is further evidence of just how tough the situation is for GAME right now. The focus very much remains on pure survival as opposed to revival at this stage.”

The shop announced earlier this week it would not stock the game, with other EA games affected in some form, continuing its ongoing woes that emerged last month.

The BioWare RPG launches next week for PS3, 360 and PC.

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3 Comments

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  1. LastExile

    As reported by MCV – http://bit.ly/A6V89e

    “But the bad news isn’t reserved for just for GAME. Mass Effect 3’s omission from GAME and Gamestation shelves is bad news for EA too, according to Peel Hunt’s John Stevenson.

    “We expect Mass Effect 3 will suffer as a consequence of not supplying GAME, noting other titles that GAME has not stocked recently, while lower profile, certainly failed to impress in terms of chart position.”

    But you didn’t mention that bit…odd.

    Either way, it’s bad for both of them. I suspect heads will be knocked together to sort it out, there’s a lot of money at stake.

    #1 2 years ago
  2. LOLshock94

    Alot of people are saying game wont ship any EA games due to how EA dont agree to there used games thing are sumit

    #2 2 years ago
  3. conk donk

    For GAME, as a consumer who lost his preorder, I can’t see how they can be trusted again. Why would anyone preorder anything with this company ever again. I didn’t find out about GAME not stocking ME3 until after work when it’s seemed to sell out from those shops selling at a reasonable price.

    For EA, if I can’t get the CE which matches the ones I have for the first two games what is the point in getting this game on day of release. I still have Skyrim to play not to mention a stack of books to read. I may as well wait until it’s in the sub £10 bargain bins.

    The way I see it, this is not good for either company.

    #3 2 years ago