Morrissons’ move could turn into “bloody war,” says analyst

Radiation

Radiation

Golden Boot Winner
6 February 2006
Widnes
Newcastle United
Morrisons move to start a "bloody war" in UK retail

Morrisons' move earlier this week to offer videogames for up to half price has been described by one analyst as "The opening salvo is what could turn out to be a very bloody war".

Although the Morrisons promotion is only initially set to run for a week, if successful it could run for longer, and Altium Securities' David O'Brien believes that could have repercussions for other retailers, reports The Guardian.

"Game Group has a price promise and as a result will be forced to match the levels offered by the food retailer," he said in a sell note.

"We think it highly likely that other retailers will follow suit in the run-up to Christmas, resulting not only in Game Group being forced to price match but also to increase its promotional spend in the press and on TV.

"Our expectation is that little help will come from hardware sales, as Microsoft has just reduced the entry price of the Xbox 360 to USD 199 (GBP 115), with Sony likely to follow suit.

"We think the above combination is likely to result in a reining in of profit estimates closer to Christmas."

Game's share price has fallen from 259.75 pence at the close on Monday to 243.50 pence at the time of writing, a total drop of just over 6 per cent.

GamesIndustry.biz has contacted the Game Group for clarification on whether or not it is bound to honour its price promise with respect to the Morrisons move.
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http://www.gamesindustry.biz/articles/morrisons-move-to-start-a-bloody-war-in-uk-retail
 
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Morrisons did the same offer a few weeks ago and it worked a treat. Hopefully they'll keep with it, it goes to show how much we're being ripped off when they can charge £25 and still make a profit!
 
I'd love to know the cost price for games - especially what chains like Game, ASDA etc buy in for.

When you go into a Game store now, games are like £49.99 and used are like £45.99.

Yet, online, their prices and service is generally superb...
 
these companies are strange, there losing money on this, just to get you in the door, hoping you will buy something else,
 
pboreham said:
Yet, online, their prices and service is generally superb...
Click to expand...

I agree with you there, I got my Lego Batman pre-order for like £26... Bet it was more in store though, haven't looked.

I love what Morrisons are doing, games really shouldn't be the prices they are in high street stores, it is a laugh.
 
I don't mind what Morrisons are doing as long as it's only the retailers that lose out on a bit of profit. The problem will come when they try and squeeze more from the publishers and others involved in actually producing the game and final product.

In my days of working in retail the cost price was around 50% of the sale price.
 
I bought a game from Game and it was cheaper brand new than it was second hand!!!

I mentioned this to the manager and he just shrugged his shoulders as though I'd just asked him the square root of 6843.

Fucktards.

Fucking hate Game and all their employees (apologies in advance to the obvious exceptions to that who post on here!)

I've bought a few cheap good games from Morrison's the problem for me is there isn't one near me.
 
I'm sure it ended last friday - it was just for 1 week with the opetions to do it again at a later date. My guess would be when all the big games have hit and its right in time for the christmas rush
 
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