Matt Martin
08:54 (BST)
05/07/2007
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PlayStation 3 helps sales climb at GAME
Console responsible for 20 per cent rise in like-for-like sales
High Street retailer GAME has reported that total group sales for the business were up 74.1 per cent for the first 22 weeks to June 30, with like-for-like group sales up 45.6 per cent.
Following the launch of PlayStation 3 last March, like-for-like sales in the UK and Ireland have grown by 46.6 per cent. Without including PlayStation 3 hardware, software and associated peripherals, like-for-like sales for the region were only up 24.6 per cent.
International like-for-like sales were also boosted by Sony's next-generation console, climbing 42.6 per cent - or 20.1 per cent when not including PS3 stock.
The company noted that consumer demand remains high for all formats, particularly for Nintendo's Wii, but the lower margins on hardware sales are likely to impact margins until next year.
"The higher volumes of new generation platforms will increase hardware participation in the sales mix for the year to January 2008," commented Peter Lewis, chairman of GAME.
"The substantially lower margins achieved on hardware compared to software will reduce gross margins. The acquisition of Gamestation will also impact margins, as Gamestation has traditionally operated on lower margins than GAME," he added.
Despite this, the retailer still expects to report a net profit of between GBP 1 million and GBP 3 million for the first half of the year.
The company also confirmed its expansion plans, with another 50 stores to open before the end of the year - the majority of which will be in international regions.
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