Game Digital sales fall in 'challenging' video games market

Game said there had been a faster-than-expected decline in sales of older games formats, while the switch to the newer Xbox One and PlayStation 4 consoles had been slower than expected.

 

In the 21 weeks to 19 December, revenues fell 6.7% to £466.8m. The retailer now expects to report half-year underlying earnings of £30m, compared with £43m a year earlier.

 

"The trading conditions in the UK video games market have been challenging," said Martyn Gibbs, Game Digital's chief executive.

"The switch over from the older gaming formats to PlayStation 4 and Xbox One software has impacted profitability across the UK market.

"The extent of the impact of this switch over has only become apparent in December which has been compounded by lower year-on-year High Street and shopping centre footfall."

Game said that UK sales of products related to the Xbox One and PlayStation had risen by £19m to £114.6m.

However, it added this had been "more than offset by the unexpectedly steep decline in Xbox 360 and PlayStation 3 content sales, down £30.8m to £23.4m".

Game also said sales had been "disappointing" since the start of the school holidays.