OnlyMe Posted January 12, 2010 Share Posted January 12, 2010 First signs of what I suspect will be a torrid time for the smaller chains and specialists, let alone the independents and indivdual shops. All the ballyhoo from the supermarkets, just counts for pinching more sales from elsewhere. No growth in overall sales, just shifting sands. http://www.guardian.co.uk/business/marketforceslive/2010/jan/12/gamegroup-christmas-profitwarning Profit warning from Game Group after disappointing Christmas Sales at Game's UK and Ireland stores fell by 17.5% in December and early January despite "a sizeable installed base of hardware" Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted January 12, 2010 Share Posted January 12, 2010 First signs of what I suspect will be a torrid time for the smaller chains and specialists, let alone the independents and indivdual shops. All the ballyhoo from the supermarkets, just counts for pinching more sales from elsewhere. No growth in overall sales, just shifting sands. http://www.guardian.co.uk/business/marketforceslive/2010/jan/12/gamegroup-christmas-profitwarning Profit warning from Game Group after disappointing Christmas Sales at Game's UK and Ireland stores fell by 17.5% in December and early January despite "a sizeable installed base of hardware" Now, that is really interesting - excuse me for kudos moment as Game were one company I posted about on here prior to Christmas believing it would have a bad Christmas. Ah, Gameeeeeeeeeeeeee. I was really disappointed last week as, on the BBC TV news and radio, mentioned Game repeatedly as having a really good Christmas and I simply could not understand it. Everything was just pointing to the likes of Game having a bad Christmas and, checking their game prices with competitors, they seemed more expensive than others. So I was confused, shocked and a tad depressed last week to hear the BBC stating that Game had a good Christmas - obviously that information was based on NO facts whatsoever. Seems that the facts are different to the BBC spin so why did the BBC spin the news last week? No doubt many people will have heard good stuff about Game last week and believed it. Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted January 12, 2010 Share Posted January 12, 2010 I'm really surprised at this. For the past few months our local shopping centres have been noticeably light on foot traffic, yet the Game stores are usually so busy that I can't bring myself to walk into them. The stores are generally quite small I guess, but I thought this was one model that would do better in a recession to be honest. £40 for a game with maybe 100 hours gameplay versus £40 for a meal out... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 12, 2010 Share Posted January 12, 2010 An unexpected profits warning? Quote Link to comment Share on other sites More sharing options...
Monkey Posted January 12, 2010 Share Posted January 12, 2010 i've said it for ages, that Game has an amazing number of shops, all of which need staff, heating stock etc. in Southampton Centre there is 4 Game shops, Why? i know 2 are from when they bought/change from Electronics Boutique but they could easily shut 2 (one is in a Debemhams) as 2 are liturally 200m apart. and seeing other town centres they also similarly have more than 1 Game shop in close proximity. Lakeside and blue water shoping chetres both have 2 game shops Quote Link to comment Share on other sites More sharing options...
efdemin Posted January 12, 2010 Share Posted January 12, 2010 Don't they own the GameStation stores as well? If you include them there's even more duplication - e.g. two Game and a Gamestation just in the centre of Cambridge! Quote Link to comment Share on other sites More sharing options...
headrow Posted January 12, 2010 Share Posted January 12, 2010 Now, that is really interesting - excuse me for kudos moment as Game were one company I posted about on here prior to Christmas believing it would have a bad Christmas. Ah, Gameeeeeeeeeeeeee. The fact they gave a profit warning well before christmas makes it pretty obvious that were having a bit of a tough time. Sony , Nintendo and Microsoft not bringing out any new products is what's hit them hard and for this reason i expect Game to suffer until they do. I still think they'll survive because people have to have the new releases on the day they come out . I see the share price is down about 7% , i'll be buying when the market as a whole is back around the 5000 level. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted January 12, 2010 Share Posted January 12, 2010 The fact they gave a profit warning well before christmas makes it pretty obvious that were having a bit of a tough time. Sony , Nintendo and Microsoft not bringing out any new products is what's hit them hard and for this reason i expect Game to suffer until they do. I still think they'll survive because people have to have the new releases on the day they come out . I see the share price is down about 7% , i'll be buying when the market as a whole is back around the 5000 level. I didn't see the profit warning. They had Call of Duty out which, you would think, would have brought them in huge sales. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted January 12, 2010 Share Posted January 12, 2010 The fact they gave a profit warning well before christmas makes it pretty obvious that were having a bit of a tough time. Sony , Nintendo and Microsoft not bringing out any new products is what's hit them hard and for this reason i expect Game to suffer until they do. I still think they'll survive because people have to have the new releases on the day they come out . I see the share price is down about 7% , i'll be buying when the market as a whole is back around the 5000 level. 5000? ,about a weeks time then when the markets figure out just what China tightening means.This next 3 months is the crux of this crisis IMO.A big double dip with no liquidity left to throw at it. Quote Link to comment Share on other sites More sharing options...
headrow Posted January 12, 2010 Share Posted January 12, 2010 I didn't see the profit warning. They had Call of Duty out which, you would think, would have brought them in huge sales. And thats been the only 'must have' game of the winter. The industry is crying out for something new. PES and FIFA need a new engine if they expect kids to fork out £40. GAME is at the mercy of the developers , all its eggs are in the games software basket and at the moment the software house chicken isn't laying any. Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted January 12, 2010 Share Posted January 12, 2010 Game is a 100% leisure oriented business, relying disposable income and credit. They sell absolutely nothing productive. Why would it be a surprise that they go tits up when a huge recession forces everybody to tighten their purse strings and make the hard choice between a weeks worth of food or a video game. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted January 12, 2010 Share Posted January 12, 2010 5000? ,about a weeks time then when the markets figure out just what China tightening means.This next 3 months is the crux of this crisis IMO.A big double dip with no liquidity left to throw at it. For us numpties who: a) Did not know China was tightening? Do not know what China is tightening? Can you tell us the how and why this is important? Moneyweek had a big article on their website about China tightening but my brain refused to read it as I assumed it was another 'buy gold' article. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted January 12, 2010 Share Posted January 12, 2010 For us numpties who: a) Did not know China was tightening? Do not know what China is tightening? Can you tell us the how and why this is important? Moneyweek had a big article on their website about China tightening but my brain refused to read it as I assumed it was another 'buy gold' article. China sucked about $20b out of the system Monday and has raised its banks capital requirements by 0.5% today.Its decided it doesnt want to be the only engine of growth and is worried about bank lending being too high.Could have a real big impact on mining companies etc who have drove this bear market rally.The Aussie $ is being hammered because of this. Raising the capital requirements might suggest they sense crash round 2 in the west.One to watch, Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted January 12, 2010 Share Posted January 12, 2010 China sucked about $20b out of the system Monday and has raised its banks capital requirements by 0.5% today.Its decided it doesnt want to be the only engine of growth and is worried about bank lending being too high.Could have a real big impact on mining companies etc who have drove this bear market rally.The Aussie $ is being hammered because of this. Raising the capital requirements might suggest they sense crash round 2 in the west.One to watch, Interesting - thanks. Quote Link to comment Share on other sites More sharing options...
sign_of_the_times Posted January 12, 2010 Share Posted January 12, 2010 what are the chances of the UK NOT being technically out of recession at the end of Q4 ? methinks Labour are banking on the fact that we are so they can hail a recovery. I would love the figures to still be negative if only to piss on Gordon's parade... Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted January 12, 2010 Share Posted January 12, 2010 what are the chances of the UK NOT being technically out of recession at the end of Q4 ? methinks Labour are banking on the fact that we are so they can hail a recovery. I would love the figures to still be negative if only to piss on Gordon's parade... Or better still, they emerge from recession in Q4 by a fraction of a percent, only to slip into 'negative growth' again in Q1 2010, slap bang in the middle of an election campaign. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted January 12, 2010 Share Posted January 12, 2010 Or better still, they emerge from recession in Q4 by a fraction of a percent, only to slip into 'negative growth' again in Q1 2010, slap bang in the middle of an election campaign. Very possible indeed likely.They must be mad going for another budget before going to the country.Then again Labour need tobe way behind in the polls but somehow win on the day if they are to avoid a gilt "problem".Brown more QE but will the BOE do it at the same time inflation ticks up? Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted January 12, 2010 Author Share Posted January 12, 2010 Game is a 100% leisure oriented business, relying disposable income and credit. They sell absolutely nothing productive. Why would it be a surprise that they go tits up when a huge recession forces everybody to tighten their purse strings and make the hard choice between a weeks worth of food or a video game. Competition and nature for the games market also. With big supermarkets stocking the top 10 say games at reduced prices all year round and box-shifting the consoles and accessories + online price competition they are left scrambling for the high-street scraps and all the high rents to carry. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted January 12, 2010 Share Posted January 12, 2010 (edited) Don't they own the GameStation stores as well? If you include them there's even more duplication - e.g. two Game and a Gamestation just in the centre of Cambridge! Imo, that was a deal the Dti / monopoly commission should have stopped, they were the 2 big players on the high st. I'm in the online game selling trade, and suspected this would happen. IT is probably more due to Game stores than Gamestation as they are very overpriced. I know the guys in my local Gamestation well, they told me that they were meeting their targets before xmas (perhaps they were lying or being misled). I was suspicious, as Gamestation were discounting heavily before xmas which was unusual . They've been getting hit from a few areas. Hmv started dealing in used games now on a small scale and cutting prices on the newer stuff. The relentless price cutting grind of amazon /ebay/ play.com/supermarkets continues. Many more game owners are putting stuff on ebay themselves on the 99p free listing fee auction instead of trading it in for peanuts on the high st at Game, CEX, GameExchange & Cash Converters . Anecdotally, In my NW small city, 2 new small second hand shops have opened up that sell used games recently, after no new ones opening for 4 years. I didn't see the profit warning. They had Call of Duty out which, you would think, would have brought them in huge sales. That stopped other games being released at the same time Edit: the Drm system for new games has killed the value / resaleability of many new pc games, which previously was a large market. Many consumers have gone on a buying strike due to being outraged about the system . Edited January 12, 2010 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted January 12, 2010 Share Posted January 12, 2010 I didn't see the profit warning. They had Call of Duty out which, you would think, would have brought them in huge sales. In Game I saw this priced at 49.99 but Asda had it for sale at 38.74 from memory. Quote Link to comment Share on other sites More sharing options...
Van Posted January 12, 2010 Share Posted January 12, 2010 The videogames industry is slightly down on last year, but having a pretty resilient year all things considered. GAME otoh are getting killed by online retail. I actually like GAME a lot and go there quite often, but I mainly buy used/old games which is worth naff all to their bottom line. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted January 12, 2010 Share Posted January 12, 2010 The videogames industry is slightly down on last year, but having a pretty resilient year all things considered. GAME otoh are getting killed by online retail. I actually like GAME a lot and go there quite often, but I mainly buy used/old games which is worth naff all to their bottom line. I find those used/old games so much cheaper from amazon or play.com marketplace sellers. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted January 12, 2010 Share Posted January 12, 2010 In Game I saw this priced at 49.99 but Asda had it for sale at 38.74 from memory. The week it came out Amazon had it for £30 briefly - darn, should have bought it then. I think Sainsburys had it for £30 in the opening week also. Quote Link to comment Share on other sites More sharing options...
Godley Posted January 12, 2010 Share Posted January 12, 2010 Typical hpc thread. One particular company posts a profit warning thus we face financial aremaggedon. Taking the retail sector as a whole it seems to have done very well thanks very much through Christmas. But hey don't let the good news get in the way of a snippet of bad, that just wouldn't be hpc would it? PS: Anybody posted the news about Blacks? Quote Link to comment Share on other sites More sharing options...
sign_of_the_times Posted January 12, 2010 Share Posted January 12, 2010 PS: Anybody posted the news about Blacks? you need to troll the BNP site instead mate Quote Link to comment Share on other sites More sharing options...
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