video nasty: Games launch deepens shadow over market’s future

Game Group has warned that a new batch of video games launched at a key trade show last week had failed to convince it the market was set to improve.

The group, which has 322 stores and concessions in the UK and Ireland, said that same-store sales were down 9.4 per cent in the 19 weeks to June 11. The wider market has seen revenue declines of 12.8 per cent.

The E3 annual video games industry trade show, in Los Angeles, showcased games launching in the second half of the year, such as Modern Warfare 3, FIFA 12 and Mario Kart 3D – but Game, which has around 25 stores in Yorkshire, said they were unlikely to improve the market in the short term.

Hide Ad
Hide Ad

Game and the wider market have suffered as high inflation and muted wage growth stifles spending power, while the industry also claims to be nearing the end of a hardware cycle.

After viewing the software range at E3, Game said its revenues for the whole year would be flat or decline by up to 3 per cent, compared to expectations of a 10 per cent decline for the whole market.

Related topics: