The UK games market is a "joke", according to analyst Michael Pachter.
The Wedbush Securities managing director of equity research said that retailers' failure to make money on games has contributed to high street bankruptcies.
"The UK games retail market is a joke, with retailers pricing below cost to drive traffic," he told Digital Spy.
"That's great for consumers, but retailers can't make any money on games, hence the bankruptcies of GAME, HMV and Blockbuster, and the refusal of GameStop to expand into the market."
Pachter believes that US games retailer GameStop halted an expansion into the UK primarily because "games retail in the UK doesn't make money".
"If all retailers go broke, or if games are dominated by mass merchants like Dixons, gamers are ultimately going to get fewer selections," he said.
"The absence of GameStop and the demise of GAME limits the ability of consumers to trade in used games, depriving many of credits that can be used to purchase new...