The UK's largest videogame retailer, Game, have announced losses of £5.9 million in the first half of 2004. This is up from £800,000 in the preceding 6 months. Game's chairman, Peter Lewis, had warned that a lack of major new titles and no hardware launches would make for tough trading conditions. But even he must be dismayed by the figures. The games industry is notoriously cyclical, with most publishers reserving their biggest titles until the Q4 Christmas rush. This year has been no different, although the likes of Spiderman and Doom 3 helped sales in the normally arid summer months. And then there is increased competition from etailers and, increasingly, supermarkets. But maybe the problem for Game is a little closer to home.
Recent visits to the store have shown a company relying more and more on second hand titles, with many placing the pre-owned tray near the entrance. This does little to promote sales of new or recent games. Similarly the dated decor and cluttered layout, combined with the "eau de teenage boy" smell that pervades most stores, makes Game an increasingly undesirable place to shop.
However, the company are set to launch more stores soon, and Lewis is optimistic: "As we prepare for the crucial Christmas trading period, we believe we have our best ever offering," he said. What do you think? Am I being too harsh? I guess it depends on what you want from a bricks and mortar games retailer.
