Game plays for market share
Sales up for electronic game specialist
January 9 2003
Game did record business over the Christmas trading period, with UK sales up by 9 per cent in the five weeks to January 3.
The electronics game specialist saw UK like-for-like sales grow by 5.6 per cent in the Christmas trading period, and said that in the year to date it has increased its software unit sales by more than 25 per cent.
Group turnover for the 11 months to January 3 rose by 9 per cent, with like-for-like sales up 2 per cent, in a UK market for video games and computer software which declined in value by 1.5 per cent as console manufacturers such as Nintendo and Xbox dropped prices to gain market share. The Sony PS2 remains the clear market leader, with a share of more than 50 per cent.
Console sales account for around a quarter of total market value, and so the lower prices affect like-for-like comparisons. However, the price cuts helped to increase the number of console owners by 15 per cent, boosting software sales up 7 per cent.
Game said that strong Christmas promotions and high levels of customer service helped it outperform the industry and gain market share gains in both hardware and software sales.
Game said it is closing its on-line gaming division, but will continue to pursue online sales, which grew by more than 80 per cent over Christmas.
Game chairman Peter Lewis said: “These are good trading results demonstrating our ability to adapt quickly and effectively and to win customers in a fast changing retail environment.
“We have improved on our already leading UK market position with an increase in our market share of more than 1 per cent. We now look forward without complacency to what is likely to be another challenging year.”
