Retailer GAME Increases Second Half Margins Despite a Drop in Hardware Sales

12th August, 0 replies

UK retailer GAME has increased its gross margins for the second half of its financial year. This is despite a drop in hardware sales.

Sales for the PlayStation 4 and Xbox One have declined and the consoles are being sold at a reduced price, which has resulted in hardware revenue falling by 19 percent.

However, this decline is expected to be offset by increased software sales. Digital game sales also increased 16 percent.

GAME reportedly has 33 percent of the marketshare for video game retailers in the UK. 550,000 people are signed up to GAME wallet and 1.5 million have registered for the GAME app.

"The Group traded well throughout the second half, with a strong performance on new release titles and pre-owned technology products contributing to a nine per cent year-on-year increase in H2 margin delivery," said GAME CEO Martyn Gibbs. "We are confident that our strategy of focusing on the recruitment and retention of Xbox One and PlayStation 4 owners across our two major territories provides a solid foundation from which to drive growth over the medium term."

Source:

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