Even the computer games manufacturers are suffering!
Award-winning games developer Eidos is today at the centre of intense speculation regarding the future of the group after apparently entering discussions with his bankers. Console games and general computer games have seen a massive rise in popularity over the last decade and even though competition is tough in the sector Eidos has been one of the leading developers for some time.
Rather alarmingly the company has revised full-year sales forecast from between £180 million and £200 million to between £160 million and £180 million. This will have a substantial impact on the company's profitability at a time when prices in the sector are falling and demand is starting to wane.
This is a perfect example of how the leisure and entertainment sector is coming under extreme pressure from reduced household incomes and more focused spending. This reduction in spending has instigated something of a price war across the sector with manufacturers and retailers looking to find a level at which consumers could be tempted back into the market although this has put their profit margins under serious pressure.
The leisure and entertainment sector is crying out for help from the government in the form of possibly tax incentives to consumers and tax breaks to those operating in the industry. Whether these will be forthcoming very much remains to be seen.
Share this..
Related stories
Do different opinions make the MPC work?
Only a few days ago we saw MPC member Andrew Sentance step into the limelight to suggest that UK base rates could rise in the medium term to offset the risk of inflation. However, today we see fellow MPC member David Miles suggesting that UK base rate will not rise in the short term with the risk of inflation set to subdue and the real risk being that of a slowdown in the UK economy if fiscal tigh...
Read MoreMortgage lending below boom level, according to CML
13/12/2013 The Council of Mortgage Lenders (CML) has said that mortgage lending was higher than expected in 2013, but is not yet at the level witnessed in the housing boom. Lending did dip slightly month-on-month in November, but was still up by a sizable 30% when compared to the same month a year ago. The gross lending figure for mortgages was £17bn in November, down from £17.6bn in Octob...
Read MorePoll results: Pensions are most confusing financial product
15/07/2013
Which financial products do you feel least confident handling yourself?
Mortgage – 18.2% Pension – 45.5% Debt – 9.1% Savings – 27.3% Insurance – 0%
45pc of people say they are less confident about handling their pension than any other financial product. This comes as little surprise; pensions are not only products that can be very com...
Read MoreDid the authorities overdo the airspace lockdown?
As the authorities finally decide to lift the UK airspace ban at 10 PM there is confusion and anger in the airline industry with British Airways for one suggesting that the lockdown and grounding of all airlines in and around Europe was overdone. British Airways is not the first company to step forward to complain about the lockdown as a number of prominent airlines around the world have undertake...
Read More900 sacked at Lindsay oil refinery
In a follow-up to our earlier post regarding the unofficial strike at the Lindsay oil refinery it has this evening been confirmed that 900 of the 1200 contract workers who walked out early this week have been sacked by Total. While the workers are said to believe that there was an agreement that no UK workers would be made redundant before foreign workers at the site, Total has confirmed that no s...
Read More