Game suffers profit slump
Revs up though
Posted in Financial News, 25th April 2006 14:31 GMT
Free whitepaper – Blade learning lab and technical community
Game has suffered a slump in profits as consumers wait for a new generation of games consoles to hit the shelves and old gear is sold off at knock down prices.
Publishing its results for the year to the end of January, the high street game retailer reported that pre-tax profits plunged to £5.4m compared to £29m a year earlier.
This disappointing slide came as turnover increased over the same period from £576.6m to £645.1m.
"This was an immensely difficult transitional year and it is disappointing to report such a sharp drop in profits," Game chairman Peter Lewis said. "We expect the UK market to continue to be very competitive during 2006, particularly in older formats."
However, Lewis is optimistic that things will improve. Sony has pencilled in November 2006 as the worldwide launch date for its long-awaited Playstation 3 and the Nintendo Revolution console is tipped to hit Europe next year.
Supply concerns regarding the availability of hardware and software on the Sony PSP and Microsoft Xbox 360 platforms have also improved, with the retailer saying it ended the year strongly.
By mid afternoon, Game's share price was down 2.25p (2.74 per cent) at 79.75p. ®
Free whitepaper – PowerEdge M1000e, M600 and M605 spec sheet

Enabling the Agile Data Center
Hosted CRM Can Be Your Secret Weapon to Success!
Market Primer: ERP Systems

Dirty, dirty PCs: The X-rated picture guide
Top 500 supers - rise of the Linux quad-cores
Early adopters bloodied by Ubuntu's Karmic Koala
Sign up, sign up for The Register IT security newsletter