GAME Failing at Only Job as Last-Gen Sales Collapse

By Gary Cutlack on at

Looks like we might get to republish all those stories about GAME going bust again soon, as the high street gaming chain -- already pulled out of collapse once back in 2012 -- warns that it's facing "challenging" conditions due to... many reasons.

The primary reason appears to be the generational transition from PS3/Xbox 360 to PS4/Xbox One, with the company saying that previous generation hardware sales fell by 56.7 per cent year on year, with the lower margins generated by the new wave of consoles also contributing to less money coming in through the door.

The company's critical pre-Christmas trading update makes for rather grim reading, with CEO Martyn Gibbs explaining: "The switch over from the older gaming formats to PlayStation 4 and Xbox One software has impacted profitability across the UK market. The extent of the impact of this switch over has only become apparent in December which has been compounded by lower year on year high street and shopping centre footfall."

"Whilst we are pleased with strong growth in our newer products, this has not been sufficient to offset the margin decline from sales of Xbox 360 and PlayStation 3 content and other old format software," he added, with the UK's headline 11.4 per cent year-on-year drop in gross take a rather sorry stat given the rampant nature of today's gaming scene. [GAME via MCV]

Want more updates from Gizmodo UK? Make sure to check out our @GizmodoUK Twitter feed, and our Facebook page.