Despite issuing a bleak set of Xmas financials today, UK retailer The Game Group is rather more upbeat regarding the coming year.In a statement released to coincide with the fiscal news, Game looks forward to 2010/11. It expects, "the video games market to continue moving towards higher margin software and new peripheral technology, to supply an unprecedented installed base of consoles in the market (28.5m units in the UK alone, compared to 22.0m units in January 2009)."
But higher margins don't necessarily mean more revenue if you're selling fewer games. Game's got that covered, "The Board remains mindful of the uncertain macro-economic environment and the trends in the pc and video games market. This combination of factors means that revenues are likely to decline year on year but our sales mix will continue to move towards higher margin new and preowned products."
Just how retail and the publisher are going to get higher margins without upping the price to consumers isn't covered in the note.