UK retailer GAME blames falling profits on lacklustre console sales

UK video game retailer GAME has endured a mixed six months, with the company's latest set of financials showing profits are still on the wane. 

During the 26 week period ended January 28, pre-tax profits fell by 26.7 percent to £16.7 million ($20.7 million). Revenue also fell by 9.1 percent to £499 million ($621.1 million). 

The company blamed its performance on a weaker line-up of new game launches compared with this time last year, and also noted the "softer" impact of certain key titles -- though it neglected to name and shame. 

Although the retailer was happy with the contribution of digital sales, eSports, and virtual reality tech, it ultimately lamented "another tough period for console hardware and physical software sales in the UK."

"Together, these dynamics resulted in a disappointing performance from our UK retail operations, however our Spanish operations and new business areas delivered further growth," explained the firm.

"We delivered another positive performance across our focus retail categories in the half, including digital content, pre-owned tech, and PC gaming. Overall we more than doubled sales from our growing events, eSports and digital activities."

GAME anticipates another tough year with regards to console hardware and software sales in its core Xbox and Playstation categories. That said, there's a sense of optimism surrounding the Nintendo Switch, with the retailer buoyed by the "successful launch and continued consumer demand" for the hybrid system. 

The impending launch of Microsoft's high-powered Scorpio could also boost the company's fortunes, along with the release of blockbuster titles such as Red Dead Redemption 2 and Super Mario Odyssey further down the line. 

"The launch of the Nintendo Switch has, as with most new console launches, brought positive impetus and growth to the whole games market," continues the report. 

"Looking further ahead, further supportive market developments are expected in the first half of the next financial year, with the launch of Microsoft’s Project Scorpio and several major new game titles already announced."