UK retailer HMV has posted financial results for the last fiscal year, noting that the sale of video games has "significantly underperformed" compared to the company's expectations.
For the fiscal year ended April 30, 2011, HMV chairman Philip Rowley explained that, while other areas of sale such as music declined broadly as was expected, video game sales were down dramatically.
He cited "very weak trading at Christmas" as a reason, while also noting "aggressive pricing strategies by supermarket and Internet mail order competitors." Severe snow during winter time was also blamed.
In total, a 14 percent contraction in market value for the video games market was recorded for the fiscal year. Again, it was noted that HMV's market share fell as a result of supermarkets offering more and more deals on games.
It was noted, however, that pre-owned game sales continued to thrive, with a 46 percent increase over last year.
Overall, the company saw annual net losses of £123.1 million ($197.7 million), compared to a profit of £49.2 million ($79 million). Revenues fell to £1.15 billion ($1.84 billion), down from £1.28 billion ($2 billion).