Press Association 

Games retailer Game announces £5.9m loss

The computer games retailer Game today reported widening pre-tax losses in the face of a dearth of new games and consoles.
  
  


The computer games retailer Game today reported widening pre-tax losses in the face of a dearth of new games and consoles.

Game - based in Bracknell, Berkshire - said its pre-tax losses had increased from £800,000 to £5.9m in the six months to July 31. The group said turnover had fallen 13.6% as expected because of a predicted lack of major titles in the first half and no new hardware launches.

However, Game said it had plans in place to make the most of its traditionally important second half, promising a "very strong" software release schedule in the run-up to Christmas.

The group said its trading performance had improved, with like for like sales up 1.6% since August 1, and total group sales up by 9.8%. It added that it was accelerating its store opening programme in the UK and the Republic of Ireland, with 400 stores set to be trading for the crucial festive season.

Game's chairman, Peter Lewis, said he had warned in April that the first half of the year would be challenging because of the lack of major new titles and no hardware launches.

"As we prepare for the crucial Christmas trading period, we believe we have our best ever offering," he said.

"The group has shown its ability to trade well in an increasingly competitive arena, and there is a very strong software release schedule in the second half. We continue to expect a satisfactory trading outcome for the year as a whole."

The group depends on Christmas for its full-year performance, and earlier this year reported record profits of £34.7m in the year to January 31.

It said price cuts and new hardware model launches would help the trend of improved hardware volume and related software sales to continue in the second half.

In August, the prices of both of the PlayStation 2 and Xbox consoles were cut to around £100 from £139 and £129 respectively, broadening their market appeal, Game said. In the first few weeks after the price reduction, the market saw a threefold increase in total units of the formats compared to the previous few weeks.

 

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