The Wholesale Forums

[Costaconsoles]

Story from MCV

UK games market ‘poised for downturn’

GAME share price drop evidence that industry will have to tighten belt, says Investec


GAME’s share price dropped by over 10p today, as a prominent City analyst predicted a ‘downturn’ for the buoyant UK market.

GAME’s stock dropped by 4.13 per cent, down 11.75 pence, prompting Investec’s Natalia Marisova to paint a gloomy picture of the industry's near future.

She wrote:

‘Growth and performance are strongly linked to the video games industry product cycles. In the absence of any major hardware releases until 2010, we believe that the video games market is poised for a downturn, limiting GAME’s growth prospects.’

Investec’s comments are in stark contrast to the recent Office Of National statistics report into the state of the UK High Street – which said UK games retail was in rude health, despite the well-reported credit crunch

[double_d77]

Most markets will struggle with the present climate in the money markets.

I think it will start to pick up though..........soon...................

Dave

[hardwareheroes]

I am not so sure that the games industry will suffer as much as most. Note what the article say - "will limit growth". That doesn't mean things will get poor does it?

[retrostation]

Does the article just mean the game store 'Game' ? Thats how I read it anyway, well they price themselves into that position, they are the biggest rip off merchants in retail at the moment, I hate them and will NEVER buy from them, and since they bought 'Gamestation' Ive doing any retail game shopping I had to do at blockbuster! Both stores are a complete rip off now, Sod em!

The way I see it, it can help any new game orientated business if most boycott the big 2 game retailers!

Just my oppinion anyway, and as I'm well into the process of opening an online game store I can honestly say this news has made me smile!

[Declang]

Originally Posted by double_d77

Most markets will struggle with the present climate in the money markets.

I think it will start to pick up though..........soon...................

Dave

I think theres more of a drop to go before it starts picking up.

[Beneddie1112]

Originally Posted by retrostation

Does the article just mean the game store 'Game' ? Thats how I read it anyway, well they price themselves into that position, they are the biggest rip off merchants in retail at the moment, I hate them and will NEVER buy from them, and since they bought 'Gamestation' Ive doing any retail game shopping I had to do at blockbuster! Both stores are a complete rip off now, Sod em!

The way I see it, it can help any new game orientated business if most boycott the big 2 game retailers!

Just my oppinion anyway, and as I'm well into the process of opening an online game store I can honestly say this news has made me smile!

How do you mean, Ripoff merchants?

[retrostation]

Originally Posted by Beneddie1112

How do you mean, Ripoff merchants?

Well just look at the pricing at game! The games retail for £39.99 to £49.99 were as you can get the same games at Blockbuster in the same shopping arcade for between £29.99 and a max of £44.99. Even woolworths and argos retail at around 20% cheaper.

The super markets like asda and tesco are even cheaper!

Then you get online stores that are cheaper still, yes they have less overheads but it just shows what profits the GAME stores are making by, imo ripping off joe public.

Its also the trade in values that have dropped, say you get a £50 game, the trade in is instantly under £30, thats worse depreciation than Cars lol!

I just dont like the way Game work, the staff are useless too from my experiances.

Like I said though, its just my point of view mate.

[Tango34uk]

When Game used to be EB (that shows my age!) things were good, good staff and good prices, but now I always purchase from Tesco's or Morrisons (They seam to sell PC Games at massively under the RRP).

[Saajan]

Originally Posted by retrostation

Well just look at the pricing at game! The games retail for £39.99 to £49.99 were as you can get the same games at Blockbuster in the same shopping arcade for between £29.99 and a max of £44.99. Even woolworths and argos retail at around 20% cheaper.

The super markets like asda and tesco are even cheaper!

Then you get online stores that are cheaper still, yes they have less overheads but it just shows what profits the GAME stores are making by, imo ripping off joe public.

Its also the trade in values that have dropped, say you get a £50 game, the trade in is instantly under £30, thats worse depreciation than Cars lol!

I just dont like the way Game work, the staff are useless too from my experiances.

Like I said though, its just my point of view mate.

Well business is about making money right? That's what GAME are doing, maximizing their profits.

[retrostation]

Originally Posted by Saajan

Well business is about making money right? That's what GAME are doing, maximizing their profits.

Yes very true, but over pricing is always detromental to long term plans, people always figure it out eventually and that when the wheels start to fall off, as by the look of things has started to happen!

I also know staff at Game and Gamestation, they tell me that Gamestation are still making a decent profit but Game are on the downslide! As again the OP has pointed out!