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Fatalysm

UK Retailer GAME in Administration

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http://www.gizmodo.co.uk/2012/03/game-shares-suspended-as-no-value-left-in-current-form/

 

The doomsday scenario of the possible demise of high street chain GAME appears more likely to happen today, after GAME Group requested its shares be suspended from trading. The board’s discussions with lenders came to the conclusion that there’s “no equity value left in the Group.”

Which is a big business way of say it’s run out of money and its overdraft is maxed out. The future for the chain still isn’t decided, though. A move into voluntary administration might save some of the assets from being stripped and converted into pound shops, with news last night claiming that a new company could be formed to take on some or all of the existing stores under a new brand.

 

Here's an email I sent to youtuber TotalHalibut on the subject.

 

 

Hi TotalBiscuit,

As you've probably already found out the UK high-street retailer Game has gone into administration. The company involved are looking to appoint administrators. For those who don't know this basically means the company is taken over to stop the retail chain from going into any further decline. A lifeline for the company to sort out any money problems and give others control of the business. What would you say is the main reason Game had this decline and also what happens to other retailers...Namely GameStation (not the podcast) which was acquired by Game in 2007.

With the current state of high-street gaming retailers, is it wise for the company to try and come back from this rather than take what they've got and make up for their losses. Clearly it's very sad for the 6000 employees working for Game. However as a company decision do you think would better for them not to make another emergence, knowing that the way they have currently been operating hasn't worked for them in the current economic climate. That also leads to my other question. Could they see a return if the economics in the UK were slightly better?

As a whole we are nowhere near gaming through complete digital downloads and the need for physical copies and the convenience of a store is to great not to warrant a store such as Game. The problem I foresee here is that suppliers such as Nintendo & EA aren't going to be too trusting with games and the stranglehold is effectively gone now. Are those big publishers really going to put there money back into Game? They might do, or they might try and find other retailers who don't hold a monopoly. I can say with confidence that unless there were massive changes I think suppliers will think twice and that effectively stops Game's business just as it has been doing very recently.

Next biggest issue for me was the obvious lack of used games that will be starting to occur. You know this topic very well and I've only got a few more questions I don't want to bore you. If Game aren't making that much profit from used Games anymore that they have gone into administration, does this also mean that used gaming is on a little bit of a decline? I don't personally know what kind of ratio they sell new to used and I'm wondering whether it's the lack of new content from the shortage of supplies or whether it's used games or perhaps a little bit of both.

That's about all I can think of!

Regards,

Matt (Fatalysm)

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basically

blame ea and activision for screwing up game

They probably had quite the hand in it. But who could blame them, if you don't get money back on your product you're bound to stop shipping. Admittedly the games market isn't as traditional and they probably would have made quite a bit of money but I think Game was going in a downward spiral before companies started pulling out.

 

Has TB replied?!

Not yet, I'm hoping he replies through The Mailbox that he does quite often. Don't know when he records though so perhaps if i'm lucky he might answer my question within the next couple days...If not...I don't think i'll get a reply!

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meh all we have left in the uk is CEX, Amazon and Play.com

HMV isn't bad for games, I've often found their prices to be cheaper, they stock all the latest releases, and have a good selection of used. And if you buy CDs like I do you accumulate points at a better rate on your rewards card than in game.

#everycloud

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This is not 1 bit surprising, when they charge the most for new release games, and don't drop the price when you can get it cheaper somewhere else

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i have about £5 in points to spend D:.

 

 

meh all we have left in the uk is CEX, Amazon and Play.com

and ASDA!!!!!

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i have about £5 in points to spend D:.

 

 

meh all we have left in the uk is CEX, Amazon and Play.com

and ASDA!!!!!

Tesco clubcard rep yo'. 'cos every little helps.

 

And I also have about a fiver in points, Gonzyy :P

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I just found about 3 gift cards with about £10-20 on each :|. Guess I'm going shopping tomorrow

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Well.

 

My local GAME store is closed.

 

Bugger. Where will I buy games on release day now?

Amazon in advance and get it a day before

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Well.

 

My local GAME store is closed.

 

Bugger. Where will I buy games on release day now?

Amazon in advance and get it a day before

 

That's not the same. And Amazon didn't stock the Skyrim Collector's Edition.

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They have stopped accepting gift cards, vouchers, store credit and points cards. That is unacceptable.

 

GAME were screwed, they had a crappy business model and relied off ingorance rather than providing a good service. Sucks for their employees, but the company been a sitting duck for a while now

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One of the two game shops in town has closed :( I'll be keeping a close eye on the prices in the other :)

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