Is There Trouble Brewing for GAME?

UK retailer GAME announced that earnings are down by around £10m for the half year to 23rd January. Citing the "challenging UK market' and a drop in sales of games for the PS3 and Xbox 360, the firm has admitted that sales are much weaker than predicted for them. 

The firm are investing in their Multiplay eSports business and GAMEtronics hardware brands over the coming year, but have stated that they will need to make "operational efficiencies", including a planned outsourcing of their customer services operations. At the moment, store closures are not being entirely ruled out, but the firm were keen to point out that none of their stores are presently making a loss so there are no imminent plans to close stores. 

This isn't the first time that the retailer has fallen on hard times. Back in 2012 they were placed in administration and bought out by a private equity firm. This led to the loss of the  Gamestation brand from the UK high street, leaving GAME as the last remaining chain of dedicated gaming retail stores seen nationally in the UK.