Console price cuts and blockbuster software launches haven't bolstered GAME, the largest specialty retailer in the UK, which saw its sales drop 11.3 percent over the last 18 weeks to December 5.
Like-for-like store sales fell 13.9 percent over the same period. GAME is seeing declines in the broader picture too, seeing total sales down 10.8 percent year over year during the last 44 weeks, and an international sales decline of 2 percent.
"Recent console price cuts from Sony and Microsoft have increased demand, though revenues from increased unit sales of these formats have not offset the overall fall in hardware revenues," says GAME chairman Peter Lewis.
Although Lewis points out that bundles and exclusives have helped GAME continue to "outperform the market," he sees increased competition from other types of retail, including supermarkets. On the plus side for GAME, its used business has provided it some added support given the economic climate.
"Since the half year, there have been a number of major software releases including Call of Duty: Modern Warfare 2
and FIFA 10
, which both broke records in their first week of launch," Lewis continues.
"However, the exceptionally strong performance of these titles was in part offset by softer than expected sales of some other releases."
The company is optimistic about the holiday period ahead, as it also grows its online downloadable game sales. "While the wider economic conditions and prevailing videogames market trends lead us to approach the critical Christmas period cautiously, the Board believes the Group is well positioned to deliver a solid outturn for the year," Lewis concludes.