Game Group: UK Video Games Market 'Below Our Expectations'
UK retailer Game Group today released an interim management statement, noting that its revenue is down year-over-year across all video game sales, including software, hardware, preowned and accessories.
The company said that recently launched major video game titles are in-line with first week expectations, but that in later weeks, sales are trailing off more quickly than expected.
The statement noted that, while the company's revenue is down across all categories, it is still ahead of the overall video games market. "The performance of the market is below our expectations," said the statement.
Ian Shepherd, CEO at Game, explained, "The overall video games market remains very challenging, despite strong title launches, and our guidance today reflects the extraordinary economic times in which we are operating."
"Game has outperformed the market, reinforcing our position as market leader, and I am hugely proud of our teams. They remain focussed on delivering our strategy, controlling costs and driving operational cashflow, and we remain well placed to benefit in the medium term both from the next console cycle and the growth in digital and social gaming."
For the 41 week period ended 12 November, 2011, the company said that revenues were down 10.6 percent year-over-year, with like-for-like sales down 8.6 percent. In comparison, the company noted that the overall video games market was down 12.3 percent.
Looking forward to full year expectations, the company noted that it has revised its original target of a 0-3 percent drop in revenue year-over-year, and now expects to see revenues drop by at least 7 percent year-over-year.