GAME Group Hit Hard by PS3 Delay
2007 profit slump following European PS3 slippage.
The Telegraph reports today that the UK’s leading videogame retailer the GAME Group estimates the Euro launch of the PS3 will cause a £3.5million drop in its predicted profits for 2007.
GAME’s FD, David Thomas, tells the paper: "We expected relatively small quantities of these new products on the market. Analysts are suggesting the gross margin impact will be somewhere between £4.5-£5m but that will be mitigated by sales of other products - the Microsoft Xbox 360 or the Nintendo Wii." Thomas was ‘comfortable’ with another estimate which pegged the predicted profit shortfall at £3.5million.
And from GAME’s Chief Executive, Martin Long: “We said from the beginning of the year, the most important thing driving profits would be the technologies we had on the shelves at the start of the year, the Xbox360, the PSP, Nintendo DS and PS2."
GAME reported a pre-tax loss of £7.1m for the first half of 2006 compared with £14.7m in 2006. Revenues rose 23.6% to £273m, compared with £221m last year.
Speaking to weekly trade magazine MCV, GAME chairman Peter Lewis said: “The Board remains confident that this year will be better than last, and to date, our performance has been encouraging…Hardware for the Xbox 360, PSP, Nintendo DS and PS2 is in free supply and consumer demand remains strong…We are looking forward to Christmas 2006 and beyond as the next generation consoles continue to launch with the Nintendo Wii due to launch in December 2006 and Sony Playstation 3 due to launch in March 2007.”
He added: “The Board has increased the interim dividend by 10% reflecting our confidence in the future.”
(Source: The Telegraph/MCV)
GAME’s FD, David Thomas, tells the paper: "We expected relatively small quantities of these new products on the market. Analysts are suggesting the gross margin impact will be somewhere between £4.5-£5m but that will be mitigated by sales of other products - the Microsoft Xbox 360 or the Nintendo Wii." Thomas was ‘comfortable’ with another estimate which pegged the predicted profit shortfall at £3.5million.
And from GAME’s Chief Executive, Martin Long: “We said from the beginning of the year, the most important thing driving profits would be the technologies we had on the shelves at the start of the year, the Xbox360, the PSP, Nintendo DS and PS2."
GAME reported a pre-tax loss of £7.1m for the first half of 2006 compared with £14.7m in 2006. Revenues rose 23.6% to £273m, compared with £221m last year.
Speaking to weekly trade magazine MCV, GAME chairman Peter Lewis said: “The Board remains confident that this year will be better than last, and to date, our performance has been encouraging…Hardware for the Xbox 360, PSP, Nintendo DS and PS2 is in free supply and consumer demand remains strong…We are looking forward to Christmas 2006 and beyond as the next generation consoles continue to launch with the Nintendo Wii due to launch in December 2006 and Sony Playstation 3 due to launch in March 2007.”
He added: “The Board has increased the interim dividend by 10% reflecting our confidence in the future.”
(Source: The Telegraph/MCV)
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Comments
Rustman 26 Sep 2006 18:50
1/5
Oh dear. What a shame. They'll have to put their prices up then.... hmmm.
majin dboy 26 Sep 2006 21:40
2/5
f**k them,they didnt give me a job.
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hollywooda 27 Sep 2006 08:49
3/5
i hope the company folds & is sucked in2 a blackhole taking all the slack jawed doe eyed chav's who work in it.....I THANK U!
brainofedsan 27 Sep 2006 08:59
4/5
Just for second, imagine your not into video games-walk into Game and realise "this is a sad place" I stopped purchasing from game when I was kept in a line wating to be served as the sales jockey tried to push loyalty cards. (2 other members of staff refused to serve as they were floor walkers)
And he smelt of frazzled electrics.
"using the dead as sales assistants...foolish humans"
And he smelt of frazzled electrics.
"using the dead as sales assistants...foolish humans"
SCiARA 27 Sep 2006 13:07
5/5
Stupid f**ks should'nt have relied on Sony's word then should they