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  1. #1

    Default GW issues profit warning..

    Hi all,
    Released this morning:


    RNS Number : 9132Y

    Games Workshop Group PLC

    05 January 2011

    Games Workshop Group PLC

    ("Games Workshop" or the "Group")

    TRADING STATEMENT AND NOTICE OF RESULTS

    For immediate release 5 January 2011

    Games Workshop announces that pre-tax profits in respect of the year to 29 May 2011 are likely to be below current market expectations.

    Sales were down 4% in the first half to 28 November 2010. Difficult trading conditions since that time mean that this shortfall is unlikely to be recovered by the year end. The Group's gross margin and costs remain under firm control and cash generation remains healthy. In addition, the outlook for royalties receivable in the current year remains good, although not as significant as in the year to 30 May 2010.

    The Board of Games Workshop currently believes that, as a result of reduced volumes, pre-tax profits in respect of the year ending 29 May 2011 are unlikely to meet current market consensus estimates.

    The Board will announce the Group's half-yearly results for the six months to 28 November 2010 on 25 January 2011.


    I have high-lighted the reference to drop in sales volumes.(Share prices have dropped too!)

    Its taken a while but I belive GW have finaly passed the point of being able to use price risies to compensate for a shrinking customer base.

    TTFN.

  2. #2
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    Default

    This comes after a time in which the financial section of the London Evening Standard was recommending GW shares!

    A couple of thoughts:

    1. A profit warning (to me, semantically - I'm no expert) means they won't make as much as expected. Doesn't mean there will be a loss automatically.

    2. All the reasons the internet people put up, particularly our US colonial cousins who can't believe a service industry pays so little attention to its customers, will not be the sole reason for this - ie its not just because bubba had to wait for his codex or faq, and warmachine players don't. Actually it will be a combination of all things.

    I don't think they will automatically put down prices to have small profits, quick gains. The bricks and mortar stores also won't disappear - this is geared as I have said many times, to be a one stop shop for parents to go with the christmas list thoughtfully provided by GW and get little timmy a 'hobby in one' (said parents probably don't trust buying online and feel stupid googling for space monsters.)

    What I do hope for:

    a. Sideline LOTR.
    b. Stop aiming at preteens + - lets have a wargame with brain melting lead content citadel miniatures that say 'not for under 14s', not all this 'toy soldier' rubbish. Remember when you got Space Crusade and then tried to work out 2ed rules to join in the with the older gamers? We managed, didn't we? So can they.
    c. Don't think 'bitz' and 'collectors' pieces will make us buy more for conversion - open up your old 'cast any part at all' business and see if we can stick it to ebay.
    d. GW to remember to stop letting the so-called 'business gurus' in charge influence game design - let the geeks run things.
    I'M RATHER DEFINATELY SURE FEMALE SPACE MARINES DEFINERTLEY DON'T EXIST.

  3. #3
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    Quote Originally Posted by Denzark View Post
    d. GW to remember to stop letting the so-called 'business gurus' in charge influence game design - let the geeks run things.
    GW is a publicly traded company. This wont, and cant, happen.
    I am the Hammer. I am the right hand of my Emperor. I am the tip of His spear, I am the gauntlet about His fist. I am the woes of daemonkind. I am the Hammer.

  4. #4

    Default

    Quote Originally Posted by DarkLink View Post
    GW is a publicly traded company. This wont, and cant, happen.
    Not so much this. More like Geeks don't know how to make money. If geeks ran things, GW would be bankrupt.

  5. #5
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    My GW purchases decline a little each year. I love building new kits, but I am not a fan of the frequent price rises. I remember when land raiders were $50. I know that some people remember when 50 marines were $5, but I only got back into the hobby a few years ago.

  6. #6
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    Quote Originally Posted by Reikou View Post
    Not so much this. More like Geeks don't know how to make money. If geeks ran things, GW would be bankrupt.
    I believe that's the point I was trying to make
    I am the Hammer. I am the right hand of my Emperor. I am the tip of His spear, I am the gauntlet about His fist. I am the woes of daemonkind. I am the Hammer.

  7. #7

    Default

    Quote Originally Posted by DarkLink View Post
    GW is a publicly traded company. This wont, and cant, happen.
    Um.... Did you read what your quoted?


    Quote Originally Posted by Denzark View Post
    d. GW to remember to stop letting the so-called 'business gurus' in charge influence game design - let the geeks run things.
    As in. Let the Geeks write the rules and make a good game. Let the Business Gurus concentrate on running the company/Marketing/pricing/schedules/ect.

    The Business heads arguably shouldnot have there hands in game design, no more then the geek have there hand in the business planning.

  8. #8

    Default

    Quote Originally Posted by Lockark View Post
    As in. Let the Geeks write the rules and make a good game. Let the Business Gurus concentrate on running the company/Marketing/pricing/schedules/ect.

    The Business heads arguably shouldnot have there hands in game design, no more then the geek have there hand in the business planning.
    You're implying that they are mutually exclusive things. They are not. Designing a game that won't sell, simply won't sell, no matter what kind of business strategy you have, nor how great of business advisors you have.

  9. #9

    Default

    GW flubbed pretty badly in their attempt to market the game to kids. Although the idea that they can make good money on kids that will be in and out of the hobby in under a year while still keeping all of us hopeless addicts buying is not a bad one, the way they went about it it awful.

    The problem is that in order to sell to kids they greatly simplified army rules, removing variant lists, armories, and funky options. The idea was certainly to make the rules more accessible for younger players, but what they forgot was that most kids make up rules as they go along anyway. In other words, kids would just ignore rules that were too "complicated" or make up new rules, but with their "streamlining" they alienated a lot of their older players that really liked the individuality the era of Andy Chambers allowed them to have.

    Then to add injury to insult they essentially told Andy to take a hike when he wanted to create a deeper 5th edition instead of just redoing 4th edition with a run rule and transports that people actually bother to put units it. They brought this on themselves, trying to take the geeky complexity out of Warhammer is like taking the naked lady pictures out of Playboy.

  10. #10

    Default

    Quote Originally Posted by Reikou View Post
    Not so much this. More like Geeks don't know how to make money. If geeks ran things, GW would be bankrupt.
    Could not BE more right

    This is due to the BASIC FACT

    This game and sales were hurt by a GLOBAL ECONOMIC SLOWDOWN

    ONE SIMPLE REASON people lets not all go Crazy and lose our heads.

    If you are scared you will lose your job or you have or your hours were cut you spend less on things not need to in the basic 1. Shelter, 2. Food 3. Utilities . If you are struggling to pay those you do not buy little army soldiers

    Have a DAY

 

 
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