UK retailer GAME is looking to sell part of its Multiplay business after conducting an internal review.
The esports and events side of Multiplay, which includes the popular Insomnia gaming festival, will not be going anywhere. On the contrary, the company is focusing its resources on ‘the acceleration of the development’ of its esports and live gaming initiatives.
GAME is instead looking to offload Multiplay’s Digital Division, which includes multiplayer game server-hosting technology.
GAME said in a statement: “Given the encouraging early performance and significant potential of the Group’s esports activities, including the first 18 retail concepts now in operation under the BELONG brand, the board has recently undertaken a review of all business areas across the group.
“Following this review the board has prioritised the further development of the group’s experience based gaming proposition and esports activities and, consequently, the board has taken the decision to evaluate strategic options for the group’s digital enterprise activities, including Multiplay’s Digital division.”
“The board has taken the decision to evaluate strategic options for the group’s digital enterprise activities, including Multiplay’s Digital division.”
GAME says both parts of Multiplay have delivered revenue growth over the past year. Multiplay’s Digital sales have more than doubled, from £2.1m to £4.5m, whilst Multiplay’s Events and Esports sales have increased almost 50%, from £4.8m to £7.1m.
Last year, the Multiplay Events and Esports business was relocated and integrated into the core GAME business. Meanwhile, Multiplay’s Digital division remains a separate business unit based in the New Forest, Hampshire.
The news comes as part of GAME’s year-end trading and business update. The group’s total Gross Transaction Value reached £891.7mfor the full year ending July 29th 2017, down slightly from last year’s £912.6m).
Group revenues for the year are expected to reach around £780m, down from £822.5m last year.
GAME has also been looking at how it can make cost savings across retail. It hopes to save £5m in retail compared to last year.
Martyn Gibbs, GAME Digital CEO, said: “GAME has now opened 18 BELONG arenas, and we have seen encouraging early performance. We have reviewed our operations and are now accelerating development plans as we seek to fully capitalise on the strong growth potential in our exciting and growing esports activities.”
Dom is an award-winning writer who graduated from Bournemouth University with a 2:1 degree in Multi-Media Journalism in 2007.
A keen League of Legends and World of Warcraft player, he has written for a range of publications including GamesTM, Nintendo Official Magazine, industry publication MCV as well as Riot Games and others. He works as full-time content director for the British Esports Association and runs ENUK in his spare time.