Earnings: Game Profits Munched By Slowing Console Sales

An expected slow-down in console sales knocked two thirds off Game Group‘s January-to-June pre-tax profit – it dipped 67 percent from last year to £10.8 million.

Chair Peter Lewis says that’s because Game clocked up “unprecedented sales of hardware and record breaking software launches” in the same period last year.

And anyway: “We have returned to more normal trading patterns where, historically, we have generated nearly all group profits in the second half of the year.”

Ecommerce sales from Game.co.uk are up 12.1 percent from last year

— Pre-owned sales (one of Game’s real fortes) are up 12.3 percent to £177.3 million and now account for just over a quarter of group revenue (up 4.4 percent).

— Game’s also added another million reward card members so far this year, up to 13.3 million.

So software sales don’t appear too problematic; Game has just suffered in this period from the drop-off in hardware sales, despite an Xbox price cut and a new-look Playstation 3. Still, with the installed bases for both machines, and Nintendo’s Wii, growing, it’s looking forward to the Christmas period’s game release schedule.

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