Game Group's share price nose dives

UK video game mega-chain Game Group is worth 90 per cent less today than a year ago.

Game's shares today cost around 6 pence. A year ago, they cost around 71 pence.

Multiply share price by share volume to calculate a company's market capitalisation.

Today, Game's market capitalisation is £22.58 million. A year ago, that number was £261.46 million (assuming there were the same number of shares available).

In the year ending 31st Jan 2009, Game made a record pre-tax profit of £117 million. In 2010, that number was £84.21 million. In 2011, that number was £23.10 million.

Half-way through 2011, that number was minus £51.47 million. The full-year forecast is a pre-tax loss of £0.06 million.

Last week, Game lowered its revenue (money made from overall sales) forecast for the full year, blaming "extraordinary" economic times.

Whichever way you plot those numbers, the graph slopes sharply downwards.

Game's current RiskGrade is 914, which makes it "highly risky".

But there are some points worth considering. The general economy isn't in great shape, to say the least. And the video game market - money made across all UK shops, presumably - is down around 12 per cent on last year.

What's more, supermarkets continue to undercut specialist video game stores, and online the competition is fierce.

It's worth also remembering that while Game's share price is low, it still employs over 10,000 staff in over 1300 outlets, and turns over more than £1 billion each year.

Game also now sells Xbox Live and PlayStation Network digital content - initiatives it trialled and then rolled out this year. Game also tried something new with its inaugural Gamefest game show this year, in Birmingham.

Game remains the favoured launch partner for huge games such as Battlefield 3 and Modern Warfare 3, too.

Cant say that Im surprised about this, Game simply arent competitve enough when it comes to pricing.

Agreed mate, it used to be HMV in this position but they have learnt, GAME however still sell some new releases for £42.99-£44.99 which is frankly ridiculous....couple that with their exceptionally poor online service and it's a recipe for disaster....

I would however say they aren't entirely to blame, I reckon a fair chunk of their profit was made from the 2nd hand market that's been shrinking ever since project $10 started....

The new release prices are bad enough but i really begrudge the prices they charge for used games, especially given that you know how much the trade in prices is. If they had a more realistic pricing structure instead of the 60%+ markup they charge maybe they wouldn't have mountains of games sat in the preowned section

They could do so much more, particularly as the largest specialist retailer for Gaming.

1, First up, rationalise some of their stores, there are far too many of them. In particular consider merging the Game and Gamestation brand, closing the smaller stores and concentrating or moving to slightly larger stores.

2, Offer more competitive prices on new games, particularly online where they probably lose the most. I appreciate that there in-store price could differ, but where possible they should match the online price.

3, Offer better trade in values, and cheaper used game prices. Get back to what they did best. I quite often used to pick up 3 or 4 games for £20. Cant remember the last time I saw sections like that, particularly in the smaller outlets.

4, Try and improve their selection of games, rather than the top 20 games at the current time. Again appreciate they wont want to tie too much cash up in stock, so at least they could offer some sort of ordering & advice service in store?

5, Offer better bundle and pre-order promotions, try and give themselves and edge over Supermarkets and online retailers.

6, Have a dedicated area to trial consoles & games out. Yes those with access to the internet can download demos via XBL and PSN but it would still offer a better service, potentially entice more customers through the door and they might even get some sales from it.


I dont know whether they are doing some of these things, as I have pretty much stopped going into both Game and Gamestation, unless I am shopping with the missus as it beats looking at clothes!!

In essence, they need to get back to servicing proper gamers, and not concentrate on fleecing naive parents and grand parents into buying the latest COD game for their children, at over inflated prices.

As I might have mentioned once or twice on here I am seriously unimpressed with there customer service. 2 messages sent to them now and no reply. I have found a phone number now though so will be giving them a call. I dont see myself using there onloine service ever again. In hind sight I wish I went and bought in store now.

must say i never go into game and havent done for a while now. if i am shopping in town then its gamestation - largely as they seem to employ proper gamers rather than folks who just use a wii like in game.

I pop into the local Game in Solihull but never buy and when I have in the past I find it really irritating that they insist on pestering you to trade the game in with them when you have finished with it.

I have used their online before and it wasnt too bad but the service Rigor is getting at the mo is utter shit.

No surprise that they are in this position and it is only going to ge worse as developers look for more opportunities to squeeze the preowned market including offering incentives to rental agents like Lovefilm etc:

Read this....