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26X Profits Rise for Games Group

14 October 2008 Bob Snyder Market Trends - Stats
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Games Group, with a third of the UK computer gaming market, reports pre-tax profits rose to £33.4m in the first half, up from £1.3m.

The integration of Gamestation, purchased in UK last year, is going better than expected and could lead to £9m of synergies this year and £14m next year. CEO Lisa Morgan says the group is now pursuing growth overseas (especially Spain, Australia, and France) and in online operations. The company purchased JRC, the biggest group in the Czech games market, for £3.95m in August. The online operation grew about 80% year-on-year, now about 5% of total revenue. In UK, the popularity of Grand Theft Auto and Wii Fit boosted revenues 54% to £743.4m.

Like-for-like sales in first half rose 22%. This year’s like-for-like sales could grow 8-12% this year, compared with previous guidance of 5-10%. Gross margins could improve by 80-110 basis points, compared with earlier estimate of 50-100bp.

Maybe Wall Street should be run by gamers instead of gamblers.


Go Games Group is Wii Fit

The company operates 649 stores throughout UK and Ireland, 208 in Iberia, 170 in France, 62 in Scandinavia, and 51 in Australia.

In May 2007, the Company acquired Games Station Limited (Gamestation), from Blockbuster UK Limited.

With more than 20,000 registered JRC Club members, JRC Gaming is the Czech Republic’s largest gaming retailer with more than 20 retail game shops (with another 4 in Slovak Republic).

Staples to Sell Managed Services

14 October 2008 Bob Snyder Retailer News
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Tech Data already does it; so does Ingram Micro. So why not a retailer? Staples goes mass market in USA with Network Services by Thrive, managed services for small businesses (20 to 250 employees). 

The three services offerings: Thrive Protect, Thrive Onsite and Thrive Online Backup. Thrive Protect. Several large retailers in USA offer managed services for consumers. But Staples' will draw more attention to the managed services market as it targets SMB/SOHO business segment.

Go Staples as MSP

XP Cheats Death, Again.

14 October 2008 Bob Snyder Software
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Microsoft extends availability of Windows XP on new PCs by six more months for OEMs and some developing markets.

Computer makers can "downgrade" machines from Vista Business or Ultimate to Windows XP Pro through July 2009. But Jan. 31 is still the last day system builders will be allowed to purchase XP licenses. So the system builder deadline has not changed. How fair is that?

Users can purchase PCs with XP through next July, just months before Microsoft plans to roll out Windows 7. If the market likes that as much as Vista, system builders will suffer.

Go XP Lives On

The Master of (Accessories) Universe

14 October 2008 Bob Snyder Accessories
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The Master of Accessories was next to me, standing on the ultimate accessory, a Segway, further emboldened by a red Porsche logo.
  Noel Lee, president and CEO of Monster Cable, doesn’t need a Porsche Segway to highlight his status. After all, most in the business would agree Noel invented the category of cable accessories for audio and video…

Go The Head Monster

End to “All You Can Eat” Internet

14 October 2008 Bob Snyder Comms and Internet
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Music industry may be finally taking a step forward, but cable & telecom giants want to take steps backward. Customers of Comcast USA now have an invisible barrier on their monthly data usage: 250GB per month, per account.

Users over the limit get a phone call warning and second time, Comcast suspends service for a year. That really hurts customers streaming HD video or using online backup services. And Comcast will not provide tools to help users monitor usage.

Cable & telecom instinct (even in Europe) is not to ramp up infrastructure for the coming video explosion but instead use lack of it as an excuse. They want desperately to get back to their high margin pay-as- you-use model of the wired phone era.

You are warned.

Go Comcast Caps Users

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