Game buoyed by console availability
Computer games retailer Game reported a sharp lift in sales today after benefiting from the improved availability of Xbox and PSP consoles.
The English firm said group like-for-like sales were up 10.1% during the 22 weeks to July 1, despite fears the hotly-anticipated launch of the Sony PS3 and Nintendo Wii systems later this year may hit demand.
In the UK and Ireland, total sales were up by 13.6% with like-for-like sales ahead 10.7%. In mainland Europe, comparable sales – which strip out the impact of store changes – were 7.8% higher than a year earlier.
Game, which has stores across Europe, suffered last year as fans trod water ahead of the release of new consoles – causing the price of software to tumble.
The company said a steady flow of consoles along with a popular software exchange service and a loyalty card scheme – which boasts five million members - were driving sales.
Chairman Peter Lewis said: “The planned launch of the Sony PS3 and the Nintendo Wii in the run up to the key Christmas trading season will benefit our second half.
“As will our Europe-wide store opening programme which is on track for 60 to 70 new stores this year.”
Revenues were also boosted by the release of popular games including FIFA World Cup, Lara Croft Tomb Raider, Hitman and Sims 2.
Game believes the launch of the Nintendo Wii and the Sony PS3 later in the year will benefit the firm, although analysts queried the extent of the impact.
David O’Brien, of Altium Securities, said: “We have been quite negative on the outlook for the PS3 for some time. Indeed we are hearing it is unlikely the UK will receive more than 150,000 consoles ahead of Christmas.”
However, he also pointed to good sales of the XBox 360 and said the festive period was unlikely to be as disappointing as originally anticipated.
