The slowdown in UK high street spending claims another scalp.
Shares in video game retailer Game Digital dropped to a record low on Friday morning, after the company warned that its full-year profits will be “substantially below previous expectations”.
Game had already warned that it expected to face a “challenging trading environment” in the second half of its financial year, but in a trading update today the company said its difficulties had been exacerbated by a lack of supply of the products its customers do want to buy – namely the new Nintendo Switch console.
The company said demand for the Switch had been “very strong, however the level of supply to the UK market has been lower than expected”.
Game said it expects to see improvements in its next financial year – Nintendo recently ordered a production increase to meet global demand for the console, and a stronger line-up of new games is expected – but said adjusted profits for the year to July 29 will be “substantially below previous expectations”.
At publication time, shares in the company were down 28.8 per cent, to 23.8p.
Video game retailers have been particularly badly affected by the broader shift away from the high street in recent years, with developers moving to increase their own profit margins selling games as direct downloads.
Game entered administration in 2012, and shares in the company have fallen almost 90 per cent since it returned to the stock market in two years later.
Get alerts on GAME Digital PLC when a new story is published