The computer game retailer Game, is expected to publish results badly affected by the rise of digital downloads in the same way as music filesharing has hit record shops.
This article titled “Game facing 60% drop in profits, warn retail analysts” was written by Andrew Clark, for The Observer on Saturday 23rd April 2011 23.06 UTC Britain’s leading computer games retailer, Game, is likely to reveal a plunge in profits of up to 60% this week as electronic entertainment enthusiasts shun high street shops in favour of digital downloads. Game, which is expected to name former Ladbrokes boss Chris Bell to replace its soon-to-retire chairman Peter Lewis, is forecast by analysts to deliver profits of £37m-£39m for the year to January, a dramatic drop from £90m a year ago, in spite of the success of hit games such as Call of Duty: Black Ops and Fight Night Champion. In common with music specialist HMV, the company is facing fundamental structural challenges as sales migrate onto the internet. In a strategic review in February, Game promised a “step change” in its own online offering, pledging to triple digital sales to £300m by 2013 to offset weak trading at its 1,300 shops. Analysts at Deutsche Bank have suggested Game could be a takeover target for US retailer Gamestop, which has a handful of shops in Britain and is rumoured to be considering expansion.
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