Game warns of loan covenant troubles ahead

The release of the next generation of games consoles cannot come soon enough for computer gaming specialist Game Group, which is struggling with some of its bank loan covenants after a tough Christmas trading period.

The release of the next generation of games consoles cannot come soon enough for computer gaming specialist Game Group, which is struggling with some of its bank loan covenants after a tough Christmas trading period.

Total sales in the eight weeks to January 7th were down 14.7% on a year earlier, with the only bright spot being a 3.9% increase in online sales. That improvement merely emphasises, however, Game's major problem, which is the threat posed by online competitors such as Amazon and the digital download platform Steam.

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