PSP World

UK Retailer Sacks CEO Following Slump in Sales

Lisa Morgan has stepped down as CEO of the Game retail chain following some very disappointing numbers over the past year. The group posted a 27 percent fall in profit that reflected a tough economy and intense competition from new online shops. The availability of hit video games at major supermarkets has also had a negative effect on niche retailers, according to analysts.

Some analysts have speculated on a possible takeover bid for Game by the American company GameStop, to give it a stronger presence in the European market. GameStop has also been somewhat more successful at weathering the shift to online commerce.

Shares in Game, which have fallen 42 percent over the last year, were down an additional 11.6 percent at 9:14 this morning.

Game currently operates 1,380 outlets in nine European countries and Australia. It has announced that it will close 62 of its 677 UK stores and possibly more in the coming year, while it limits the number of new international outlets. However, the company says that it sees some growth potential in new hardware offerings such as Sony's Move and Microsoft's Natal, due later this year.

Game will shutter a number of its retail shops this year throughout the UK.

[Source: Press Release]