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UK games market ‘poised for downturn’

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UK games market ‘poised for downturn’

GAME share price drop evidence that industry will have to tighten belt, says Investec

GAME’s share price dropped by over 10p today, as a prominent City analyst predicted a ‘downturn’ for the buoyant UK market.

GAME’s stock dropped by 4.13 per cent, down 11.75 pence, prompting Investec’s Natalia Marisova to paint a gloomy picture of the industry's near future.

She wrote:

‘Growth and performance are strongly linked to the video games industry product cycles. In the absence of any major hardware releases until 2010, we believe that the video games market is poised for a downturn, limiting GAME’s growth prospects.’

Investec’s comments are in stark contrast to the recent Office Of National statistics report into the state of the UK High Street – which said UK games retail was in rude health, despite the well-reported credit crunch.

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easy from behind the desk....

posted by oiyeah Jun 13, 2008 at 7:21 pm
1

POPPY****

Apart from not thinking about the negative effect comments like this have on real people who need to earn a living [from the video game business] for their families, why are you making such a comment because Game's price has fallen an earth-stppoing 10p?

Something to do with a bonus probably.

Well Miz Marisova, we in the video games bisiness don't care for your comments unless they are positive. Step away from the shytewriter, and OUR wellbeing, and let the meaningful facts of business determine our fate.

Goobye Natalia, and good luck on the back benches.

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Re: easy from behind the desk....

posted by Jun 13, 2008 at 11:59 pm
2

erm, all she's done is tell the truth. The industry is enjoying a rather good spell at the minute. Mainly due to 3 consoles hitting the market in the last few years, along with the handhelds.

These products have a life cycle and will peak, then fall.

The credit crunch is also making retail unstable. The city is rarely wrong.

This isn't to say the end is neigh. Far from it. But dips follow highs.

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Re: Re: easy from behind the desk....

posted by woodins Jun 15, 2008 at 4:23 pm
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woodins

Good thing the director sold off his shares last month, before this announcement. Bit timely of him ;-)

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Re: Re: Re: easy from behind the desk....

posted by oiyeah Jun 16, 2008 at 8:56 am
4

Maybe it is a true observation, but it is difficult to create and continue a positive state when there are unnecessary and over-negative speculation like this, making its way to our publications.

We all know it only takes a few "qualified comments" to begin spinning the downward spiral. Before we know it, we're on the bandwagon and further fueling the damaging speculation that began the possibility of a downturn.

Those who write such reports as Investec have a choice on what light such information is given, without exaggerating the truth either way.

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Re: Re: Re: Re: easy from behind the desk....

posted by ka0znrky Jun 16, 2008 at 10:09 am
5

Of course there is going to be a dip. This is the time of this gen where ppl have mostly bought the machine they want and now its time for software to be the driving force instead.

As such the summer is usually a dry period anyway as other than a few shoddy film spin-offs there are no good quality games to speak of.

@nik000: i don't see how the report being overly-negative. This time of year is always slow as nobody has 2 pennies to rub together with holdiays coming up and planning for xmas starting soon. mcv are just showing the other side of the coin as the other report says everything is brilliant and games retail is booming.

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Re: Re: Re: Re: Re: easy from behind the desk....

posted by woodins Jun 16, 2008 at 2:02 pm
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woodins

True ka0znrky ^^^^

Maybe I'm being overly-simplistic, but I was waiting for this type of speculation to begin surfacing. Every other sector of the high-street has taken a good kicking of late, what with the rising costs of fuel, credit crunch etc. I just didn't think it was going to happen to gaming now, more like maybe next year. Gaming really has come into its own now, being the fore-front entertainment media, hence the massive sales this year and last, its to be expected that eventually the "real-world" would catch up with it sooner or later.

I would expect the PS3 to be this years festive saviour, if Sony are right about the "avalanche" they have got lined up.

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MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by Intent Media, which specialises in entertainment, leisure and technology markets

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