Game shares plummet on fears demand has peaked
Published on
According to this Reuters report, UK retailer Game's shares fell as much as 14 percent to a three month low of 225p today, despite the group posting stellar financials for the first six months of the year.
"A stunning trading update," said Shore Capital analyst John Stevenson, raising his full-year profit forecast by almost a quarter to £139.5 million ($277 million).
"(But) unless we see new hardware launches into the UK market over the next 2 years, which appears unlikely at present, then we believe profits will peak this year and fall consistently over the following three years."
Game's first six month of 2008 sales showed sales up by 54 percent over the previous corresponding period.