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Home News UK Retailer GAME Expected To Lose £2M Profit Next Week

GAMING NEWS

UK Retailer GAME Expected To Lose £2M Profit Next Week

Posted on Friday, March 2 @ 12:19:38 Eastern by

With UK video game retailer GAME not stocking next week's massive new Action RPG Mass Effect 3, analysts are pondering exactly how much profit the shop will lose. How does £2 Million in lost profits sound to you?

That's the word from analyst Mark Photiades at Singer Capital Markets, who spoke with The Guardian about the retailer's financial outlook in the short term:

Working on the assumption that a decent triple A title sells 0.8m-1m titles in the first few weeks of release in the UK and assuming GAME has around 20% market share, we calculate that by not stocking Mass Effect 3, GAME is potentially missing out on around £6m-£7m of revenues in the UK given the title will retail for £39.99.

Photiades goes on to factor in the loss GAME will take in offer reward card credits.

Honestly this was my first reaction to the news that the UK retailer wouldn't be stocking EA titles this March. That's like pounding a nail in GAME's coffin for every Reaper gamers are going to kill next week.

[Source]
Related Games:   Mass Effect 3
Tags:   game, Mass Effect 3, EA, doing the numbers


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Comments
  • Bretimus_v2
    Bretimus_v2
    Joined: Jan 2009
    Posted: Mar 2nd, 2012 at 12:44 pm
    Purported moral highground is expensive real estate.
    0 0
  • Lethean
    Lethean
    Joined: Jan 2001
    Posted: Mar 2nd, 2012 at 12:47 pm
    *Expected. Spell check Daniel ;)
    0 0
  • danielrbischoff
    danielrbischoff
    Joined: Nov 2009
    Posted: Mar 2nd, 2012 at 1:48 pm
    Fixed, thank you!
    0 0
  • Bras
    Bras
    Joined: Jul 2008
    Posted: Mar 2nd, 2012 at 4:58 pm
    Still, I agree with GAME's decision.
    0 0
  • Hobo_hunter
    Hobo_hunter
    Joined: Dec 2011
    Posted: Mar 3rd, 2012 at 5:56 am
    hoo diddly, you should see the rants on my facebook news feed from friends who preordered it. so many F-bombs dropped, so many cries for GAME to be burned to the ground, so many tearful plea's for them to change their mind. oh well, i've discovered play.com and their vast collection of goodies.
    0 1
  • MarkyBee
    MarkyBee
    Joined: Mar 2007
    Posted: Mar 3rd, 2012 at 7:07 pm
    I'm immensely proud of GAME as a retailer, for standing up to EA - who have clearly moved from bullying customers with over-priced products to bullying consumers with unfair trading practices...
    0 1

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