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Posted on October 13, 2016 by staff

High Street retailer Game reports big drop in profits

High Street retailer Game reports big drop in profits

Profits before tax fell more than 20m pounds
Wikimedia Commons
Profits before tax fell more than 20m pounds

Video games retailer Game Digital has reported a drop in revenues and profits.

The firm is looking to “reposition and transform” its offering amid tough conditions on the High Street.

Its profits before tax fell to £4.1million in the year to 23 July, down from £25.8m a year ago.

In the same period sales dropped from £866.6m to £813.1m.

Game wants to incorporate multichannel retail, live gaming in stores and digital services.

Chief executive Martyn Gibbs said the market has “undoubtedly been tough in the past year”.

He added: “The management team responded quickly to these new market conditions and have made significant progress with its action plan since January.

“This has included improving supplier arrangements and terms, implementing efficiency and cost saving initiatives across the business; completing an organisation redesign and other process improvements. 

“This programme of activity is ongoing and has started to help to improve our financial performance.”

Game hopes that the arrival of virtual reality and upgraded PS4 and Xbox One consoles will help it recover.