Why Ashley loves video games firm

MIKE Ashley has snapped up a 26pc stake in Game Digital to tap into its video gaming arm.

The move is the latest investment by Ashley, who also has stakes in Debenhams, French Connection and education retailer Findel.

Game’s share price plunged 36pc last month after profits were hit by supply issues affecting Nintendo consoles and said it expected profits to come in ‘substantially below’ expectations. It said it was pleased that Ashley’s Sports Direct, which bought 44m shares, saw its strategic value.

Adam Tomlinson, an analyst at Liberum, said Ashley was probably looking to capitalise on Game’s festivals, attended by youngsters playing video games against each other. He said there had been a rapid growth in so- called esports, with around 6.5m participants in the UK.

Game runs the Insomnia gaming festival – the UK’s biggest – where gamers compete for cash.

Retail analyst Nick Bubb was dubious, saying: ‘The best that can be said... is that the stake only cost the company about £10m, such is the low level to which the Game share price has sunk.’