Games Workshop Annual Report - 2013

[Bigred]

Games Workshop Annual Report (http://investor.games-workshop.com/wp-content/uploads/2013/07/Games-Workshop-Group-13-combined-FINAL-without-title-page.pdf)

Some highlights:


Sales and cost of sales
Reported sales increased by 2.7% to £134.6 million for the year. On a constant currency basis, sales were up by 3.5% from £131.0 million to £135.6 million; progress was achieved in North America (+7.8%), Export (+2.3%), Asia (+10%) and in Other sales businesses (+27.2%) while sales in the UK (-1.4%), Continental Europe (-0.3%) and Australia (-4%) were in decline. To be consistent with how we manage the business, we now report development costs within cost of sales. In the year we reclassified £4.8 million (2012: £4.7 million) to cost of sales from operating expenses. This reclassification gave rise to a decrease in gross margin of 3.5% (2012: 3.6%).

Operating profit
Core business operating profit (operating profit before royalty income) increased by £4.6 million to £20.2 million (2012: £15.6 million). On a constant currency basis, core business operating profit increased by £5.2 million to £20.8 million (2012: £15.6 million). This result was delivered by sales growth of 2.7%, with maintenance of our gross margin, and a £2.5 million decrease in operating expenses; included in the period reported is the cost of £1.1 million related to payment of the profit share and cost of £0.2 million related to payment of performance related pay to Hobby centre managers. Costs remain a key area of focus. After royalty income of £1.0 million (2012: £3.5 million) operating profit increased by £2.1 million to £21.3 million. On a constant currency basis, operating profit increased by £2.7 million to £21.8 million. During the year, we continued with our retail store programme designed to improve our retail profitability and converted a further 82 stores to the one man format. This takes our total to 274 out of 412 stores (UK: 93, Continental Europe: 80, North America: 76, Australia: 22, Asia: 3). This programme will continue in 2013/14.

Revenue by Segment (Pound Sterling)
UK 30,922,000
Continental Europe 39,452,000
North America 36,688,000
Australia 10,943,000

Operating Profit by Segment (Pound Sterling)
UK 5,227,000
Continental Europe 4,689,000
North America 3,336,000
Australia 756,000

Hmm, first half year (Q3-4 2012) sales up strongly, second halfyear (Q1-2 2013) down slightly. It would seem the release of Warhammer 40,000 6th Edition was very well recieved.


Enjoy!

[DrLove42]

Rise in numbers across the board, against everything everyone seems to think

[Gotthammer]

How about other games like Pokémon or role-playing games? (Who can remember them, now?).

Lol (http://vgsales.wikia.com/wiki/Pokemon).

[DrLove42]

Yeah I thought that was funny. does kinda show that he doesn't keep up with the real world a bit.

[Defenestratus]

It seems so obvious that it shouldn’t need saying, but we deal in a product that sometimes allows passions to over-rule
commerciality. Many of our independent stockists and our own sales people are fans as well as customers and it helps all round if we have
a system that emphasises sales potential over aesthetics.


Rise in numbers across the board, against everything everyone seems to think

Looking for the 2010/2011 numbers but I have a suspicion that the rate of growth has slowed.


Breach of intellectual property (IP) and counterfeit products. The risk is that we lose control of our IP and thus other people can take our
market. There are two ways we mitigate this risk: product quality and IP protection. Product quality is the best defence. Our miniatures are
of extraordinary detail and have very high costs associated with their production. We do the tooling and manufacturing here in Nottingham
to ensure that quality. As it happens, even if we wanted to tool or manufacture elsewhere, we have never found anyone who can deliver
the quality we need at the price we pay. In order to be able to duplicate that quality requires a level of capital investment that no one has,
as yet, even tried to emulate. This also deals with the risk of counterfeit products. The few that are made are of poor quality and do not
appeal to our customers.

Lie.

If you've played at a huge regional event, chances are you've played against counterfeit models and never even realized it.

[Cap'nSmurfs]

Most interesting point from the raw numbers, that I can see, is both that profits are up and that a lower proportion of those profits is from royalties.

[Wilfen82]

Profit went up and staff were axed. Explains the poor customer service and pushy sales attitude in the local store.

[Deadlift]

Profit went up and staff were axed. Explains the poor customer service and pushy sales attitude in the local store.

That maybe your experience, but certainly not mine. My local GW stores in Torquay, Exeter and Plymouth are all staffed by some excellent people. Very helpful and knowledgable. The guys on the end phone at GW HQ too are always very helpful. Even if the insist on calling me "chap" :D

[Lucidum]

Not to mention that those "counterfeit products" are directly referring to the Chapterhouse lawsuit. I wouldn't call Chapterhouse "Poor quality" though.

[MarchRider]

What about the real threat/risk of desktop 3D printing? Just ignore that 300lb gorilla I guess.

[Denzark]

Not to mention that those "counterfeit products" are directly referring to the Chapterhouse lawsuit. I wouldn't call Chapterhouse "Poor quality" though.


Not when 'shoite' is easier to type, no.

So, for those who reckoned profits were increasing whilst sales weren't, let's summarise: Sales up an average 2.7% (lows of -1.4% UK, -4% Aus to highs of 7.8% US 10% Asia). Profits before royalty went up by over 25% this year.

Seems fairly healthy, add in recession/credit crunch - and this is not the signs of a company who is peeing people off to the extent they are leaving in drones. It even, dare I say it, looks like a working (I didn't say popular) business model. Who'da Thunk?

[Cap'nSmurfs]

3D printing is not yet a mature technology. It may not be for a decade. They're aware of it, it's just not a pressing issue right now.

Basically from what I read the company is healthy, they know what they're doing, and they're serious about making sure the company is around for the long term. The model they're locked into is one of pursuing sustainable growth based on solid foundations.

Interesting to see the comment about their new videogame strategy. Maybe Warhammer: Total War will ne the last of the big console/PC GW licenses? I hope not, but we'll see how the mobile phone and tablet games do, first.

[Mr.Pickelz]

I would hope that GW continues to support Video Game licenses, they add advertising value to the people outside of the niche tabletop warfare market. As well as revenue of course. Even if it's tablet games or console games, GW shouldn't abandon the possibilities of that market.

[magickbk]

If you've played at a huge regional event, chances are you've played against counterfeit models and never even realized it.

I may have a counterfeit model in my army, and not even know it. I once bought a few spare Cadian special weapons models online that might have been copies. The slottabase tab seemed slightly off. I compared the model to one I already had, that I knew 100% was legit, and it was exact, down to the position of the mold line, but the tab was definitely not the same.

I should say I made this discovery after I received the models, and kept my eye on the seller for a little while looking for funny business, but never saw anything out of the ordinary.

[MajorWesJanson]

Not to mention that those "counterfeit products" are directly referring to the Chapterhouse lawsuit. I wouldn't call Chapterhouse "Poor quality" though.

I would. Tried a couple of things from them. Regretted it.

[Bigred]

I believe this is the first time the Annual Statement has directly addressed both litigation and counterfeiting.

I would assume that means the issues are seen as rising in importance in investor's eyes.

Litigation probably due to the Chapterhouse case.
Counterfeiting probably due to the rising prices of product - and Chinese/Russian counterfeits.

[Mr Mystery]

I believe this is the first time the Annual Statement has directly addressed both litigation and counterfeiting.

I would assume that means the issues are seen as rising in importance in investor's eyes.

Litigation probably due to the Chapterhouse case.
Counterfeiting probably due to the rising prices of product - and Chinese/Russian counterfeits.

I'd imagine the significant growth in the Asian market has caused focus on erm.... Countering counterfeiting.... China is notorious for companies doing knock offs.

[Patrick Boyle]

The royalties section talking about video games is face-palm worthy in its stupidity. They didn't drop because of tablets/phones taking PC/console market share, they dropped because the last console/PC licensed title was Space Marine in 2011. THQ, the previous holders of the 40k license, going down the drain had nothing to do with mobile platforms either, they died because the management was incompetent. I sure as hell better still get a Dawn of War 3(come on, you already sold the Fantasy Battle license to the guys who own Relic now...), and I know I can't be the only person who started buying their plastic crack because of those games.

[Mr Mystery]

What about the real threat/risk of desktop 3D printing? Just ignore that 300lb gorilla I guess.

Generally, the resolution needed for a decent model is out of the grasp of most. It's not suited to mass production for now, and when it does, it will remain cost prohibitive enough for a good while to not worry GW.

[flekkzo]

Reminds me of Best Buy. If GW is on the same trajectory as them, then that is not good at all.

(For the record, I can't go into a Best Buy anymore, someone always comes over and bugs me. Drives me up the walls.)

[Wolfshade]

Sales continue to rise which is good, but I am not enitrely convinced that the is much more lean processes that can be implemented.

[Phototoxin]

I didn't realise pokemonz and RPGs had died a death. I play RPGs more than I play 40k. Only had a quick flick but seems to be more of the same. They're not dying any time soon.

[eldargal]

Anyone else noticed the sales roughly reflect economic climate? Sales are up in areas where growth is still happening/expected (except Australia where they seem to be wising up to being ripped off by foreign manufacturers/retailers in general), sales are down slightly in countries that are still struggling with post GFC nonsense.

It will be interesting to see what happens to GWs supposed sales decline when the traditional strong European market gets its fecal matter together and starts growing again, whenever that may be.

[daboarder]

Anyone else noticed the sales roughly reflect economic climate? Sales are up in areas where growth is still happening/expected (except Australia where they seem to be wising up to being ripped off by foreign manufacturers/retailers in general), sales are down slightly in countries that are still struggling with post GFC nonsense.

It will be interesting to see what happens to GWs supposed sales decline when the traditional strong European market gets its fecal matter together and starts growing again, whenever that may be.

just wanted to say, I resent that, aussie consumers have known for years we're getting ripped....the government has just recently switched on though...;)

Yeah with the exception of down under, GW is looking nice, interestingly enough we haven't really seen a cross the board price increase either this year.....

[eldargal]

Fair enough, you know what I mean though.:) Really no surprise Australian sales are down, everywhere else seems roughly consistent with consumer opinion and economic situation.

I'm really hoping they think they have hit the point where people won't stomach regular annual price rises.

[daboarder]

I do know what you mean :D

it would be fantastic if GW maintained their pricing without increases, there are a number of people I believe I could convice to get back into the hobby if they didn't have to worry about the prices blowing out again.

[Psychosplodge]

I didn't realise pokemonz and RPGs had died a death. I play RPGs more than I play 40k. Only had a quick flick but seems to be more of the same. They're not dying any time soon.

Yeah I'm sure it will be Dead come the X/Y release...


Sales continue to rise which is good, but I am not enitrely convinced that the is much more lean processes that can be implemented.

^this. I've seen my most convenient shop axed. The one I use the most now has become a five day single staff member one.

[Wolfshade]

I think the trouble is that while sales continue to grow or not fall too dramatically then GW will look to maximise profit through reduction of costs, which basically means smaller shops, less people. I am not convinced that this is a sustainable model. I think there will be a tipping point in the future where this method cannot be implemented any further and to increase sales GW will need to re-invest in their shops and convert them bafck to hobby centres, in the same way in the states the FLGS seem to be. They need to build up communities of players whose locus is at the GW shop/hobby centre and that would require larger stores so there can be more gaming facilities, more staff to cater for it and run the disprate activities like intro games, sales, painting, etc.

At which point GW will be reluctant to take the gamble of increasing costs on the gamble of increasing sales I fear.

It is hard to tell someone that there model which has been sucessful (at least as far as the board/shareholders are concerned) that they are sailing into the proverbial iceberg.

[Denzark]

Wolfy - there is clearly no evidence that larger stores as a 'locus' affect buying habits. It could be assessed as meaning more teens crowding (maybe puts off parents on a mission), higher risk of theft, the child protection issues /health and safety, greater use of store resources, less time for the 1-man band to flog stuff and supervise.

I don't believe that particular group of people (GW store dwellers) are more prone to the hard sell or impulse buy than the next man, or that they have any increased loyalty to the brand (although it does somewhat prevent the use of 3rd party models). But more importantly GW aren't getting those metrics or clearly they would have kept that model on.

Maybe the less people in a store at any one time, the more that store can focus on the sale - and it is also more convenient for them what wants to dip in, get the 'hi how are you today what are you working on have you seen this new model this is what the rules are etc etc etc' out of the way, get something specific then split.

[eldargal]

Don't forget that with GW being profitable and having low debt means that they can afford to restructure in the future if they need to, quite a big thing given the retail situation over the past five years.

[Wolfshade]

I know Denzark, I know. It was just a thought and obviously I don't have any forecasting to show whether or not it works. What I would say though is in most social groups, which gamers are, there needs to be a community in order to continue participation in the hobby/activity.

A classic example is the Church of England, they found that large churches were much more suseptable to large attendance drops than smaller ones because in a smaller on there were more of a sense of community. Hence cell church was suggested, where by the large single congregation is also catered for in smaller closer knit groups.

This online community sustains my hobby bug when it waxes and wanes with my friends.

[Denzark]

Interesting point about the church. I agree with what you are saying about social groupings - so what does that mean for GW though? Do they disagree, or do they think the social groupings will go elsewhere? If the latter, is that a calculated risk or just arrogance?

I wonder if they think that there are people that have literally too much invested in the game to drop out, and that those peoples purchases, whether through 3rd party or not, are enough to keep them ticking over whilst they try and entice new gamers through high street presence and get them hooked in the cycle?

[Wolfshade]

I don't know. From looking at the business, obviously we can only see the outward reporting and the ancedotal evidence, it seems that GW is being driven primarily by profit. Which isn't a bad thing given that that is fulfilling their legal mandate and the will of the board. My concern would be that they are maximising short term profit at the expense of the long term survival. Having said that, GW have been doing the same business plan for a good number of years and have seen increased profitability year on year so perhaps it is not at the long term issue like we worry about.

[Psychosplodge]

Reading the opening intro, I think they've seriously misjudged the future of online/pc/console gaming.

We're at the end of a console cycle so of course hardware sales are down for now.
And the PC sales market includes the decline in basic office units, that companies aren't replacing if their existing stuff is working.
You only have to look at the available components for self build to realise that gaming market is alive and well.

[Mr Mystery]

Don't forget that with GW being profitable and having low debt means that they can afford to restructure in the future if they need to, quite a big thing given the retail situation over the past five years.

Shhhhhh.....it's because they're planning to sell up......by making themselves as expensive a buy out as possible...shh.....

[Denzark]

And the fact that Windows 8 is complete pish and we all want them to go back to W98, so we are trying to eke out W7 PCs as long as possible...

[Mr Mystery]

On the subject of Consoles/PCs, are they that much of a concern to GW?

I mean, yes it is very, very cool to have electronic gaming in their settings, that's not what I'm getting at.

It's just seeing as it's all done by license, and far, far better than GW could manage in-house....

[Psychosplodge]

I get the impression they're more interested in licensing to companies making stuff for tablets as opposed to proper games?

[Cap'nSmurfs]

If you listen to a lot of industry insiders, tabet and mobile gaming is the future. As is cloud computing. Already with the new consoles we're seeing that access to indie and smaller games is a big factor they'retaking into account. The PC/console gaming market isn'tdead, but the wider market is changing, and changing fast.

And it's not like they're abandoning those traditional markets anyway, what with the Creative Assembly Warhammer game and the new 40k MMO. It's just thatthey've realised the potential of the mobile market and are grasping it with both hands.

The mobile/indie market is probably less risky, too. Smaller games, lower dev costs, shorter cycles, cheaper sale price, on mass market platforms. I think THQ's demise learned them some lessons. We'll see how it goes, anyway - the thing with a licensing strategy is that you can change it relatively swiftly and painlessly - compared to in house dev - if it doesn't work out.

[Wolfshade]

I have had a genius idea!
Leveraging the growing freemium model, create a social tower defence game for bookface in 40k, so you build your turrets that are marines or ig units against a horde of orks/nids running through.

[eldargal]

What Kapitan Smurf said, don't really see any cause for alarm. Rather pleased GW aren't going to rely on video game royalties actually.

[Cap'nSmurfs]

Design it andpitch it to them. The Space Hulk guys got that gig because they met a GW honcho at a trade show.

[Psychosplodge]

I worry they've taken it all to that format though, adding that format to the normal line up would make more sense.
Didn't Space Marine essentially keep THQ afloat for a while as it sold a lot higher than they expected?

[Patrick Boyle]

I worry they've taken it all to that format though, adding that format to the normal line up would make more sense.
Didn't Space Marine essentially keep THQ afloat for a while as it sold a lot higher than they expected?

It was the top performer for them in the quarter it was released, selling 1.2 million copies globally in that time frame, but I have no clue what their expectations for it were. Either way like I said earlier if the lesson they took from their royalties from video games dropping, 2 years after the last major release and from THQ dying for completely unrelated reasons, is that console/PC is dead and it's all tablets/mobiles fault so lets just do that now, whoever is making the licensing decisions is clearly clueless.

[Wolfshade]

Royalties, or money from licences are the icing on top. You get maximum reward for minimum risk. In essence you are paid for people to spend time and effort working within your lore.

[Mr Mystery]

It was the top performer for them in the quarter it was released, selling 1.2 million copies globally in that time frame, but I have no clue what their expectations for it were. Either way like I said earlier if the lesson they took from their royalties from video games dropping, 2 years after the last major release and from THQ dying for completely unrelated reasons, is that console/PC is dead and it's all tablets/mobiles fault so lets just do that now, whoever is making the licensing decisions is clearly clueless.

And not being directly involved in said market, that's a problem because?

Mobile gaming is booming, at least at the moment. Makes sense to farm out the licenses there.

[Denzark]

Wolfy keep that schtumm I already spend enough time fannying around on computers that would better be spent painting...

[Wolfshade]

Wolfy keep that schtumm I already spend enough time fannying around on computers that would better be spent
painting...

You can never stop me!

[Patrick Boyle]

And not being directly involved in said market, that's a problem because?

Mobile gaming is booming, at least at the moment. Makes sense to farm out the licenses there.

It's a problem because I'd still like to see DoW3 at some point. Yeah the mobile space is booming so it makes sense to expand there, but doesn't make sense to at the same time drop licensing bigger titles because the management of THQ drove the company into the ground.

[Defenestratus]

Mobile gaming is booming in volume but not in profits unfortunately. Speaking to my good friend who is a pretty big player in the video game industry, the mobile space is a lot more competitive and a lot less profitable for the bigger studios/publishers.

I agree that GW shouldn't consider video games a prime threat to their overall health. I think that when it comes to planning leisure time, wargaming and video gaming occupy to different sides of the same coin. One is something that requires a modicum of planning and impetus on the part of the player, the other is simple lazy, casual escapism on demand (which I'm not trying to relegate).

Wargaming is a much more social type of activity than traditional video gaming is and for that reason I think that GW doesn't need to worry that much about video games.

[magickbk]

Ultimately, video games using licensed GW property really aren't for all of us, they are for the massive video game demographic that has no clue what these games are. That's why they run in cycles between releasing a few games, then none for a number of years, and then a bunch again.

As for the GW stores, Wolf has it right. In this economic climate, many of the stores GW had been leasing were in locations where the rents are too high, etc. They're not sustainable, but the new format is not a long-term answer. These new mini-stores are terrible, because they have limited stock and space. GW should be where you go to get anything, and see the best stuff. Sort of an example to all the FLGSs in a region of how to do it right. Everytime I call down to GW to see if they have something I can't get in a local store, they don't, and suggest I get it shipped free to the store, which of course is pointless as a unit of almost everything costs more than the eternal monthly free shipping special. When economic conditions improve, I hope GW starts putting stores in places that make more sense, and makes one store a destination for the region. I was on staff when they did this in Philadelphia back in 2001, and we did fantastic from a sales standpoint.

[Popsical]

As for GW highstreet stores, dont get any ideas that they will expand or change much in this area.
The high street has certainly not turned the corner of this slump (in the uk).
Ive been managing stores for over 20 years, and the town centres are still emptying rather than filling with more business.
Many shops that open lately are on short leases that are often free for the first 6 months or more.
GW will likely continue to streamline their shops for the foreseeable future.

[Cap'nSmurfs]

We need some sort of name for the Law whereby whatever decision GW has just taken, it must be claimed to be the worst decision ever taken, clearly by a bunch of morons, who will ruin the business forever. It's a thing. It needs a name.

[Denzark]

Blanche's Law? Kirby's Law? Wells' Law? Vetock's Law?

[Cap'nSmurfs]

Kirby's or Wells' law seem most appropriate.

[Mr Mystery]

Oik's Law? As it's usually claimed by people who don't really have any experience of running a store, let alone a global company....

I see on the frontpage, someone on Dakka is claiming they've cooked the books, having worked out sums.

Now, I'm no mathematician, but I am a cynical sod (goes with my job). Now, which is more likely? An international company has cooked it's books, for whatever reason, but with enough oddities and incompetence that someone on the intertubes can spot it straight away. Which makes a mockery of the attempt.

OR....someone on the internet is just blowing smoke, and it's them that has their figures wrong?

[Cap'nSmurfs]

I remember someone saying that last year too. And the year before. And...

[Wolfshade]

Blanche's Law? Kirby's Law? Wells' Law? Vetock's Law?

Waaaaaaaaaaaard's law.

http://i.qkme.me/3rldz5.jpg

Look there are hundred's of examples all ready to use

[daboarder]

Oik's Law? As it's usually claimed by people who don't really have any experience of running a store, let alone a global company....

I see on the frontpage, someone on Dakka is claiming they've cooked the books, having worked out sums.

Now, I'm no mathematician, but I am a cynical sod (goes with my job). Now, which is more likely? An international company has cooked it's books, for whatever reason, but with enough oddities and incompetence that someone on the intertubes can spot it straight away. Which makes a mockery of the attempt.

OR....someone on the internet is just blowing smoke, and it's them that has their figures wrong?

and if they're both equally likely can we all accept society has gone to hell?

I mean the devil's advocate in me wants to counter with the fact that it wouldn't be the first time that a organization that should know better has done something stupid, the Iranian aviation developers and Chinese road construction authorities are good examples

[Psychosplodge]

Oik's Law? As it's usually claimed by people who don't really have any experience of running a store, let alone a global company....

I see on the frontpage, someone on Dakka is claiming they've cooked the books, having worked out sums.

Now, I'm no mathematician, but I am a cynical sod (goes with my job). Now, which is more likely? An international company has cooked it's books, for whatever reason, but with enough oddities and incompetence that someone on the intertubes can spot it straight away. Which makes a mockery of the attempt.

OR....someone on the internet is just blowing smoke, and it's them that has their figures wrong?

It's entirely possible, bigger companies than GW have done it, but that some random on dakka is the one to spot it? hmm


I remember someone saying that last year too. And the year before. And...

IDK, I know last year/year before I felt they'd artificially inflated success with the extra money from the material changeover.
Suppose it's still a wait and see for long term stability, which lets face it most of us want?

[eldargal]

If they really think that they should report GW to the relevant authorities as it is a serious offense.

[Wolfshade]

Not only that but they should also shop the independent auditor...

[Cap'nSmurfs]

I refuse to call it Ward's Law. Mat Ward is fine.

And yeah, as with the above, the amount of people who'd have to be in on this absurd and not particularly watertight accounting conspiracy - for what end, exactly? It's not like they're claiming megaprofits, is it? - basically rules it out as a possibility to all but the most addled mind.

[eldargal]

I like Oiks Law. Or the Cretins Code.

[Cap'nSmurfs]

The Neckbeard's Mantra?

[Wolfshade]

It is obvious, Matt Kirby is working on behalf of the lizardmen...

For the record I have no problem with Mr Ward personally or professionally

[Wolfshade]

I like Oiks Law. Or the Cretins Code.

Right someone without such a restrictive firewall create a meme Oik's Law with a suitably grand picture of Boris "the awe-inspiring" Johnson

[Mr Mystery]

and if they're both equally likely can we all accept society has gone to hell?

I mean the devil's advocate in me wants to counter with the fact that it wouldn't be the first time that a organization that should know better has done something stupid, the Iranian aviation developers and Chinese road construction authorities are good examples

Well indeed. I'm not ruling out the possibility that a company, any company, might have reason and cause to cook their books, and I'm sure it's a lot more common than you'd think.

But to the degree where it's noticed within minutes, by someone on the interwebs, when you thought you'd get away with it? Colour me sceptical!

[Wolfshade]

A certain company that I worked for previously would refuse to pay any invoice during August to make them more cash rich for the half year results...

[Mr Mystery]

Certainly possible. From my (ancient and brief) experience in the building trade, it's quite common for the money paid to be sat on to accrue interest, before being paid out as well, all of which can alter someone's books.

But the calculation thing does remind me of a strip in Viz, about a haunted shop with odd things (Harry Herrings, I think. Been ages since I wrote it). One of them is the Teapot of Genghis Khan, which would cause whomever owned it to lose money! Three girls scoff at the legend, and chip in £10 each. But Harry, being an honest sort, remembers there's a £5 off sale, so gives them five £1 coins as change.... To thank Harry for his honesty, the girls give him £2 for himself....leaving each girl having spent £9.........or £27 in total....yet they only gave Harry £1!! The legend was true!

Apparently it's all in the working out. I don't really understand it myself (again, not a mathematician). But overall, I know who I'm more likely to trust to have worked it out correctly, and have their figures approved by an independent party....

[Wolfshade]

Oh I see, you are meant to think each girl spent £10, then as a group got £5 change, kept a pound each and gave £2 to the guy so each girl spends £9 and for a total of £27 and then shop keep gets a £2 tip so £1 is missing.

[Mr Mystery]

Yup.

It's all in the working out. And it baffles my brain (haven't paid much attention to Maths since 1996 when I passed my GCSE!)

[Wolfshade]

Another way to think of it is that the total cost is item + tip, 25/3 + 2/3 = £9 so they each give £10 and get their £1 change :)

[Mr Mystery]

*brain asplodes*

I'll go back to my....erm.....financial complaint handling job then.....(don't worry, I don't deal with figures!)

[Clockwork]

As for GW highstreet stores, dont get any ideas that they will expand or change much in this area.
The high street has certainly not turned the corner of this slump (in the uk).
Ive been managing stores for over 20 years, and the town centres are still emptying rather than filling with more business.
Many shops that open lately are on short leases that are often free for the first 6 months or more.
GW will likely continue to streamline their shops for the foreseeable future.

Locally we have a similar phenomenon where the main business district is moving away from down town and pushing towards the edge of town where the property is cheaper, even to develop from scratch as it was old farm land that was picked up and parcelled out fairly cheap. Down town stores are small, and their monthly costs are frankly too high (often being charged by the square foot of space in some locations, such as the mall or some shopping centers) and it doesn't really help bring companies into the down town area.

[Phototoxin]

Yeah I'm sure it will be Dead come the X/Y release...


Sorry should have been clearer, I was being sarcastic - as an avid RPG-er and pokemanzer I'M REALLY REALLY REALLY SURE ITS ALL DYING OUT

[Psychosplodge]

Oh I was agreeing, I was being sarcastic towards the opening statement in the report like yourself.

[Phototoxin]

LoL! The old no tone on the internet curse has stuck again!

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Mobile gaming is booming in volume but not in profits unfortunately. Speaking to my good friend who is a pretty big player in the video game industry, the mobile space is a lot more competitive and a lot less profitable for the bigger studios/publishers.


Right, even if you're selling twenty or thirty times as many games as a traditional console or pc game, you're making a sixty-ith of the profit, and most apps don't sell that well.