UK games specialist chain GAME has revealed a notable dip in sales in the run-up to Christmas 2009.
UK games retailer GAME has revealed a notable dip in sales in the run-up to Christmas 2009 with sales dropping across all platforms despite the strong performance of key titles like
Modern Warfare 2 and
FIFA.
According to
MCV the GAME Group's sales have fallen by 10.8 percent for the year until December 5th. Like-for-like sales on the same period last year have dropped by 15.1 percent and total sales are 14.3 percent down.
According to chairman Peter Lewis the plummet can be largely blamed on supermarket price cut tactics. Earlier this year many supermarkets went into
a pricing war with some titles, slashing the price of games like
Modern Warfare 2 far below what specialist stores were offering.
"
Since the half year, there have been a number of major software releases including Call of Duty: Modern Warfare 2 and FIFA 10, which both broke records in their first week of launch," said Lewis in a statement.
"
However, the exceptionally strong performance of these titles was in part offset by softer than expected sales of some other releases...We have seen strong competition in all of the markets that we operate in. In the UK, in particular, we have seen significant pricing activity from the supermarkets"
It's not all doom and gloom though - the firm also opened 43 new stores in the last six months and claims that the pre-owned market is booming.
"
Over the longer term, we believe the video games market will continue to trend towards higher margin software and peripherals," concluded Lewis.
Let us know your thoughts in the forums.
38 Comments
Discuss in the forums Replyanyway they make most of their profit on used games dont they?
I also feel all those people that bought Wiis last year have stopped buying new games, everything out on the Wii seems to be a rehash of a title people probably already have.
I even walked straight past Game to get to Tesco. With price's like that they really can't compete.
was in HMV last night and they didnt even have a pc gaming section
tbf a supermarket can cut the costs because they only need to hire 1 checkout person for the entire store, whereas GAME needs to hire a checkout person just for games, and so the marginal overheads are significantly higher, so they need to sell at a higher price point to make a profit. Supposedly the offset is that GAME will have better selection and also better aftersales/support/knowledge of the area, but the video / pc games market has been moving towards few but significant big releases where you don't really need an entire shop devoted to LFD2 and MW2.
The supermarkets are in a position where they can offset the sale of a game against the masses of other products they sell, They probably lose money on games when they sell them cheap, but from a business point of view if you can afford to do it, and get a customer in the store its win.
The tescos where i live used to accept the fuel vouchers from the other supermarkets, just to get customers to their store.
I almost bought a 250GB PS3 with 2 BR's (Dark Knight + Wolverine) in Tesco last night, but checked on Play first where the same package was over £20 cheaper plus it came with the BR remote (which would have cost me an extra £17 in Tesco) so I left it.
Hmm now should I have bought it online from game for £25 or instore for £33...............
I know I'll buy it from amazon instead for £20.88.
If amazon can sell it for £20.88 then game online can sell it for £20.88 and as for instore price being £8 dearer, I know they have more overheads but that much increase is just ridiculous. Game online have to have a warehouse, warehouse and packing staff, plus postal costs.
They overcharge ! Simple as that. Ive bought several console & PC titles this year and none were from GAME. Every single time they change full RRP whereas Tesco is always (and I mean always) a bit cheaper (sometimes massively so).
so if you want it right there and then.. go to the supermarket.
if you can wait .. go to play/amazon.
only if neither have what you want then try GAME... but be sure to check HMV on the way !!
I think i've only bought 1 game from Game in the last 3/4 years, i prefer Gamestation. Can't do downloads cos of crap connection.
Theres no excuse for game every game so much higher than anywhere else. Argos, HMV, Amazon, Play are all cheaper. Yes, they sometimes sell at a loss, but I can guarentee that Ill pick up any game that game has from argos for at least £5 cheaper every time.
Another shop thats overpriced but at least does the occasional offer is gamestop. They also gave me the best excuse for their prices "we don't do loyalty cards because our prices are generally cheaper than game's are" Ive yet to see that unless its on a game they have on offer that week. I smell price fixing.
Or 22 quid online!
Supermarkets work with each department having to make their own profits and hit their own targets. Games departments don't get a pat on the back and a well done because they've dragged people in to buy beer as well as Fifa.
While that is the way it theoretically works, they don't mind if a department's profits don't look good if they've got some dodgy long term dealings there.
For instance, TVs, my brother was driven crazy at his work by people coming in, asking for advice, then going off to tescos to buy the TV because the shop had no way of matching the price, since it was actually less than they got them in at trade price. Basically they're offering things so cheap, such as TVs, games, etc. to get it into the minds of the general public, if you're looking for a TV, go to a supermarket. They're after a big slice market share and once they have that, prices will go back up. It's illegal, but it's also virtually impossible to prove.
Digital downloads UP + second hand sales + piracy = publishers push for more digital
You guys remember when the publishers tried to get second hand game sales banned? ... and the likes of Game Stores wanted to keep it?
How ironic.
Yeah I agree, the website is good. You can still find the odd title cheaper elsewhere (such as AVP pre-order for a steal at £17.99 on Amazon at the moment) but generally they're pretty good and always deliver a day or so early.
Like with others here, I'm a PC gamer and the last 3 or 4 Game stores (including a new much larger branch) I've visited, offered me very little choice compared to the vast amount of consoles games for sale. For instances Dirt 2 was being released on the PC and yet there was no advertising for it and infact I couldn't find it on release day at all.
Online wise Game is better and I have been impressed by their service the couple of times I have used them and the prices have been better for the products I have bought than with say Play, Amazon etc...
Another thing for us PC gamers, supermarkets generally do not cater for us that much either, so we really are left with online retailers as our only real option, but thankfully there are several excellent retailers offering competitive prices and PC games are still generally a lot cheaper than their console equivilants.
What it all comes down to is how much you're willing to pay for entertainment per hour. £45 for MW2 sounds like a lot until you realise that you could easily sink 100 hours into the multiplayer. I personally still play the occasional single player level of MW1, so there's some replayability there. Oblivion at its RRP - there is so much to do that you could replay vanilla two or three times happily, and then there are the mods. 20p/hour? Games like VF5 you could basically play forever. Same with the FIFA games - I don't play them, but my brothers do, and that must work out at about 5p/hour :D This sense of entitlement that gamers have is ridiculous. A 2 hour film in the cinema costs about £10 per ticket. Yet you happily pay £5 an hour for a similar art form to AAA games which cost 20p an hour.
I like GAME's 2 for £20 sections, but I'd very rarely buy a recently released game from them - Steam and Amazon are better and cheaper respectively.
Asda are not selling PC games anymore and most supermarkets do not stock PSP games - perhaps Game can hone in on these markets rather than selling films, books, food and CDs?
Mind you I went to Game to buy two PSP games and bought from play.com for much less - Invizimals and Little Big Adventure.
Where your brother worked more than likely made 20-35% on each TV, supermarkets work with much lower margins confident the quantity will aid profits.
Sorry but that's how it works, we don't care how many carrots are sold. Only our own merch.
Thats why im not willing to pay more £5 for DVD's lol. Games definatly the best £/hour for entertainment but atm im eying up some old gamecube games to give the wii some justification and even quite a few FPS games like lost planet and team fortress that I havent played yet. Such extreme costs for console games just puts them so low on my list. VF you could play forever, but Id rather pay £20 for oblivion and bioshock double pack and have 2 games I could play forever. Just because a game will give me alot of entertainment doesnt mean that Im willing to pay over inflated prices for it.
I think I just agrued the same point as you >.>