GAME Sees Profits Dive, Used Game Sales Increase

The Game Group, which operates the UK's popular gaming retail outlet Game, had a tough first half in 2009, with profits dropping 63.4 percent to GBP 13.0 million ($21.3 million) on declining sales. The company's revenues weren't hit as hard as its profits, dropping 7.0 percent to GBP 690.8 million ($1.13 billion). Still, Game Group chairman Peter Lewis called the first half "solid results," adding, "We outperformed markets that showed year on year declines following last year's unprecedented sales of hardware and record breaking software launches." The company had a few silver linings -- online revenue rose 12.1 percent, and used game sales rose 12.3 percent, enough to bring the used game market to over a quarter of Game's business. And, like so many others whose business depends on video game sales, Game is looking towards the back half of 2009 for a financial windfall: citing increasing console install bases and promising game releases, Lewis said, "We remain optimistic for the key Christmas selling period."