GAME management told to prepare for administration 'within weeks'

[xxMATTGxx]

GAME's management have been told to prepare for administration, it has been revealed.

Earlier this week, CEO Ian Shepherd told senior staff that the retail group, which includes GAME and GameStation, has just two weeks to save itself, according to MCV.

There are still hopes that a buyer, such as US chain GameStop, will emerge to take over the chain.

Earlier today, GAME stores across the country initiated a 'fire sale', where certain stock was sold at low prices, a move which is assumed to keep the group afloat for a few more days.

Last week, it emerged that Mass Effect 3 and future EA titles would not be stocked at GAME.

Source: http://www.digitalspy.co.uk/gaming/news/a370355/game-management-told-to-prepare-for-administration-within-weeks.html

--------

Not good news to be honest.

[Chris]

I read about this earlier today :( The whole issue with ea hasn't helped, plus the fact that supermarkets now sell all the latest games and at cheaper prices.

[xxMATTGxx]

I watched this last night and someone sent him a question asking about Game and the whole EA thing and also mentions about them closing/whatever. It's quite interesting:


http://www.youtube.com/watch?v=e_G-df84Zow

[Zuth]

Not good news at all, I might pop in this week end to see if any sales are on :P

[jasey]

This is disheartening to read! There aren't any GAME stores where I live now but they are a fond memory of France - distinctly European.

[Jazz]

Thats awful news! I might have to make the most of the good offers while I can lols

[dbgtz]

I hope they don't close, I mean they should really just be less stupid and get rid of gamestation (I mean does anyone seriously go in that shop?). There's a GAME and gamestation around a 2 minute walk from each other which is just completely unnecessary. I also hope they don't get bought out buy Gamestop, I've heard crap things about that company and I'd rather they didn't bring their bad habits over here.

[Ellz]

Aww, bad news. might pop in and see if there are sales where i live :)

[Oleh]

Damn, I was hoping to get a summer job there as well :(

[Stephen!]

I imagine their pre-owned games will go for dirt cheap. I doubt there will be any price reductions on recent retail games.

[Chippiewill]

I hope they go under. They screw over the developers with pre-owned and are preventing digital platforms from providing a good price etc.

[peteyt]

I hope they go under. They screw over the developers with pre-owned and are preventing digital platforms from providing a good price etc.

And ebay and other similar sites not forgetting the whole illegal downloading going on with games don't rip off developers even more?

I hope Game doesn't close - I work for Tesco and we sell console games, and most other supermarkets sell console games however there aren't many places these days selling actual PC games and with some games not available on services like Steam and some people not having a good connection at all (they may just want single player stuff) it would be hard to get hold of stuff locally - yeah you can go online but I prefer being able to buy it in a shop and take it straight away

[Chippiewill]

And ebay and other similar sites not forgetting the whole illegal downloading going on with games don't rip off developers even more?
There's a difference between eBay and GAME where they actively encourage you to buy pre-owned because with only slightly reduced prices because they make better margins. Further, with GAME out of the picture digital prices drop and illegal downloading will drop also.


I hope Game doesn't close - I work for Tesco and we sell console games, and most other supermarkets sell console games however there aren't many places these days selling actual PC games and with some games not available on services like Steam and some people not having a good connection at all (they may just want single player stuff) it would be hard to get hold of stuff locally - yeah you can go online but I prefer being able to buy it in a shop and take it straight awayGAME hasn't sold a reasonable selection of PC games in years, at least with GAME gone Steam and other digital distribution platforms can start using better prices without GAME blackmailing the publishers. Other stores are more likely to stock PC once GAME is gone anyway.

[Stephen!]

Second hand game sales are exactly the same as pirated downloads to the developer. In either case, the developer doesn't get a single penny.

[beth]

i like game/gamestation so i think this is sad :{

has anyone been down to the sale today seen whats going on?

[dbgtz]

There's a difference between eBay and GAME where they actively encourage you to buy pre-owned because with only slightly reduced prices because they make better margins. Further, with GAME out of the picture digital prices drop and illegal downloading will drop also.

GAME hasn't sold a reasonable selection of PC games in years, at least with GAME gone Steam and other digital distribution platforms can start using better prices without GAME blackmailing the publishers. Other stores are more likely to stock PC once GAME is gone anyway.

Illegal downloading will drop? What brought you to that conclusion? If anything it's more likely to increase as those who buy preowned games either can't afford or do not want to spend a lot on games so may just not spend any at all. I also don't see why shops would stock PC games if Game was to close? If anything they'd be more careful in what they buy as they may see it as game sales are slowing down. Your post makes no sense.


Second hand game sales are exactly the same as pirated downloads to the developer. In either case, the developer doesn't get a single penny.

The difference is, second hand purchasers are more likely to buy other things related to the product like DLC or online passes.

[Zak]

I'm not suprised. In Nuneaton CEX has completely wrecked GAME in sales. No-one buys from GAME anymore. I remember when everyone used to get their games from there too :P

[Chippiewill]

Illegal downloading will drop? What brought you to that conclusion? If anything it's more likely to increase as those who buy preowned games either can't afford or do not want to spend a lot on games so may just not spend any at all. I also don't see why shops would stock PC games if Game was to close? If anything they'd be more careful in what they buy as they may see it as game sales are slowing down. Your post makes no sense.They would start stocking PC games because they wouldn't have competition from GAME. Illegal downloading would drop as digital distribution prices would drop as publishers won't get blackmailed for cheap prices by GAME.


The difference is, second hand purchasers are more likely to buy other things related to the product like DLC or online passes.
I'm sure the developer is fine with their tiny share of the money for the full game + DLC after it's gone through microsoft and the publisher.

[dbgtz]

They would start stocking PC games because they wouldn't have competition from GAME. Illegal downloading would drop as digital distribution prices would drop as publishers won't get blackmailed for cheap prices by GAME.


But their main competition isn't GAME, infact the only PC games they really have (at least in my local one) is the Sims and WoW with the few big PC titles like Skyrim. It's a fact most PC games do not sell as well compared to their console counterpart and that's probably why other shops don't bother.



I'm sure the developer is fine with their tiny share of the money for the full game + DLC after it's gone through microsoft and the publisher.

Not sure why you put Microsoft as if they're the only ones who take a cut but anyway, that comment isn't even related to what I put. I was saying that they could be more likely to make up whatever they avoided through the purchase of DLC. However, to respond to your point here is a snip from a Eurogamer article:


If you bought a game in the run-up to Christmas and it cost £39.99 to buy, approximately £7 (17.5 per cent) went on VAT (that figure increased to 20 per cent as of 4th January), while £10.50 (27 per cent) went to the shop and £12 (30 per cent) to the publisher.

The rest goes on what's called cost of goods: the nuts and bolts of videogame publishing. 65 pence (two per cent) goes on distribution, £1.75 (four to five per cent) on marketing, and an £8 (20 per cent) licence fee goes to the platform holder (Microsoft, Nintendo or Sony). All these costs are paid for by the game's publisher. If a third-party is behind the game, approximately £3 goes to the developer, or 25 per cent of the publisher's revenue after deductibles, although developers are often paid in a series of advances as they meet milestones.

So you can see why the developer does not get as much as the publisher due to the fact they fund the mass of it most of the time. I can only imagine the cost to the platform holder goes towards the R&D costs of the console and potentially the next console.

You'll often find publishers struggling aswell as developers.

[peteyt]

There's a difference between eBay and GAME where they actively encourage you to buy pre-owned because with only slightly reduced prices because they make better margins. Further, with GAME out of the picture digital prices drop and illegal downloading will drop also.

GAME hasn't sold a reasonable selection of PC games in years, at least with GAME gone Steam and other digital distribution platforms can start using better prices without GAME blackmailing the publishers. Other stores are more likely to stock PC once GAME is gone anyway.

I rarely buy PC games at the moment but the Game down here I have seen has had some decent ones and special offers to - but to say that game closing will reduce illegal downloading is a massive lie. If anything those who can't get the games cheap as they currently can will result to illegally obtaining them if they can.


Second hand game sales are exactly the same as pirated downloads to the developer. In either case, the developer doesn't get a single penny.

There is a massive difference. And why are we picking on just Game though. Going by this logic, all charity shops that sell games are also ripping off developers.

[Mikey]

Aww this sucks! I remember when I had my Playstation 2 and I always got games out of there whenever I had spare money and also xmas + birthday money. Shame they might shut down, they've been around for agesssssssssssssssssssssssssssssss! :(

[FiftyCal]

never heard of GAME or GameStation, but sad news to hear!

[samsaBEAR]

I'm not surprised at all. I only ever shop there when my buddy gets me stuff with his discount, and even then it's only just less expensive then Amazon. I'd like there to be a dedicated video games store on the high street, but I don't want to pay extra per game for the sake of it

[Lamz]

I was wondering why GAME in Brent Cross was so packed yesterday!...

SAD SAD NEWS, but I hope the 'sales' continue for a few more days or another week so I can Get FIFA Street(4) :L

[dbgtz]

I was wondering why GAME in Brent Cross was so packed yesterday!...

SAD SAD NEWS, but I hope the 'sales' continue for a few more days or another week so I can Get FIFA Street(4) :L

I doubt they'd sell a brand new game cheaply.

[Stephen!]

They won't sell FIFA Street since it's an EA title.

[Samantha]

[@]@Bethie[/@] I went yesterday and managed to get a Nintendo DS game for 49p, got 3 other games at 99p and 2 at £1.99 there's a lot on offer, even selling wii games for 99p.

Also, I looked at the game website yesterday and I saw Sims 3 for Nintendo 3DS will be sold NEW for £6.98 at GAME (not sure if this will just be online) but it will be sold preowned at £14.98 (not sure how that is possible atm as it's not out yet so it can't be preowned) so some new games will be cheap.

[dbgtz]

[@]@Bethie[/@] I went yesterday and managed to get a Nintendo DS game for 49p, got 3 other games at 99p and 2 at £1.99 there's a lot on offer, even selling wii games for 99p.

Also, I looked at the game website yesterday and I saw Sims 3 for Nintendo 3DS will be sold NEW for £6.98 at GAME (not sure if this will just be online) but it will be sold preowned at £14.98 (not sure how that is possible atm as it's not out yet so it can't be preowned) so some new games will be cheap.

I'm gonna go to my local game tomorrow with a load of money in the hope of getting a bunch of games. I'm gonna be loaded with games hopefully :D. Which is good, the only game I got recently was Crysis 2 and that was **** but with good mechanics.

[Technologic]

Tesco is closer, steam is closest.

THATS 2012 FOR YA

[xxMATTGxx]

The Sunday Times has reported that GAME has hired Rothschild - one of the world's largest independent financial advisory groups - to help the company find a buyer (as reported in MCV).

According to the broadsheet, the retailer must pay its rent in two weeks; failure to do so could result in the company going into administration.

Deloitte is waiting to be called in should GAME enter into an insolvency process. GAME's stock has continued to plummet. At the time of writing, shares are valued at 1.15p.

GAME released a statement in response to the announcements this morning. It reads:

"While these discussions are on-going, it has not been possible to source new products from a number of suppliers. The Board of GAME is working actively to resolve these issues as quickly as possible. This includes on-going discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.

"It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company."

http://uk.games.ign.com/articles/122/1220533p1.html

[Vause]

I worked at HMV for a while over two different Christmas jobs, and both times I was there they were told to expect administration and it never happened, so fingers crossed that GAME might not end up closing!

[samsaBEAR]

The one thing I don't like about it is that there is literally no games I want to get atm, so i cant even take advantage of the sales

[Chris]

The one thing I don't like about it is that there is literally no games I want to get atm, so i cant even take advantage of the sales

Same! I have a game voucher that I need to use up, but there is nothing I want. :(

[Chris]

Bit of an update:


GAME has potential buyers for its UK and foreign branches, a report has suggested.

OpCapita, the company who acquired Comet last year for £2, is said to be interested in the retailer's UK stores, according to The Financial Times (via MCV).

A "synergy" between Comet and GAME is the basis of the buyout, with a suggestion that GAME could move away from being a game-only retailer.

http://www.digitalspy.co.uk/gaming/news/a370846/game-to-be-sold-to-comet-owner-opcapita.html

[GommeInc]

A great shame and hopefully it won't happen, but the worst has to be prepared for. I quite like GAME, but their prices can be a bit more than average, but this comes with being a High Street retailer :/ Their pre-owned market is more for the benefit of the consumer than the industry in general, and is common-place with all retailers and e-tailers. GAME aren't that big in this area of the market anymore, other than giving recycling (environmental) a go to benefit the consumers - the buyers and the sellers.

Besides, these companies which want to sell digital copies are pretty dreadful - Origin is the main culprit with their incredibly discouraging terms of service. At least Steam is reasonably good.

[Neil]

If GAME manage to pull through this all then it'll be nice but they REALLY need to sort themselves out, they need to work out a way for publishers/developers to benefit from pre-owned games, they need to sort out prices, especially with the PC section, most games aren't worth stocking in the PC section because every year steam does massive sales that reduce a lot of new and old games, most of the stock in GAME is worthless at those points in time, they aren't exactly giving consumers a fair deal with most of the prices and deals they do, the encourage you to trade in games all the time because it makes them more money, none of that goes towards publishers which is just wrong.

[dbgtz]

Bit of an update:



http://www.digitalspy.co.uk/gaming/news/a370846/game-to-be-sold-to-comet-owner-opcapita.html

My GAME already stocks blurays and CDs so it's pretty much already straying from being a game-only retailer.

[abiartemis]

Bad news if stores are going to close, my cousin works at game :(

[beth]

planning to pop in tomorrow and see if there's anything interesting going down, there's nothing in particular i want but worth a look.

[peteyt]

If GAME manage to pull through this all then it'll be nice but they REALLY need to sort themselves out, they need to work out a way for publishers/developers to benefit from pre-owned games, they need to sort out prices, especially with the PC section, most games aren't worth stocking in the PC section because every year steam does massive sales that reduce a lot of new and old games, most of the stock in GAME is worthless at those points in time, they aren't exactly giving consumers a fair deal with most of the prices and deals they do, the encourage you to trade in games all the time because it makes them more money, none of that goes towards publishers which is just wrong.

I think you got it wrong - from what I see the consumers benefit from the cheap titles but obviously the developers don't. However I think the one thing I like and I know some do like is the fact that game sells a few PC titles and not just the chart stuff - People forget that not all games are available on steam and sometimes people such as myself, like to go in to an actual shop where they can buy something and take it home on the day.

[Neil]

I think you got it wrong - from what I see the consumers benefit from the cheap titles but obviously the developers don't.

The people buying the games benefit but not the people that are trading them in, they encourage you to trade in games you may have just paid £40 for quickly so they can sell pre-owned copies earlier to gain a bigger profit, they show off fancy offers to try and encourage you to do it, I saw this with the PS Vita with the whole "play for £10" thing, that is a really cheap way for GAME to get away with selling preowned Vitas, GAME are constantly ripping customers off with shoddy prices, it's almost always cheaper to just shop online now days anyway.

[GommeInc]

The people buying the games benefit but not the people that are trading them in, they encourage you to trade in games you may have just paid £40 for quickly so they can sell pre-owned copies earlier to gain a bigger profit, they show off fancy offers to try and encourage you to do it, I saw this with the PS Vita with the whole "play for £10" thing, that is a really cheap way for GAME to get away with selling preowned Vitas, GAME are constantly ripping customers off with shoddy prices, it's almost always cheaper to just shop online now days anyway.
If GAME managed to re-distribute their earnings from pre-owned copies to, for example, selling new games cheaper they could make quite a hefty profit and boost their popularity. It's odd they've not done this, but most greedy companies forget decent makreting strategies to earn an easy, quick sale rather than prepare for the future. It kills weak minded companies these days, it's why GAME are in trouble now because they've not evolved with the times. Their online store was pretty good and, in some cases, better than Play.com and Amazon.co.uk when it first went online, but they never went further to offer anything worth while to the customer.

This could easily turn into a marketing essay but I'll stop myself here :P

[Lee]

I seen a comment here saying why would people buy extortinate rates at GAME when supermarkets do it so much cheaper and I compeltely agree! I loved GAME and gamestation in the day but they sky rocketed prices and expected it to have no implications. Well unfortunately here they are!

[Technologic]

A lot of comet stores already have a game in them so it would make sense really....

[peteyt]

I seen a comment here saying why would people buy extortinate rates at GAME when supermarkets do it so much cheaper and I compeltely agree! I loved GAME and gamestation in the day but they sky rocketed prices and expected it to have no implications. Well unfortunately here they are!

As people have already mentioned though most stores seem to sell only console games and not PC games and from what I've heard even game's closure won't make them sell them as it doesn't seem they think there is a big enough market.

This may be true, many games can be available digitally now - e.g. steam - but if you like steam, you'll notice some games not available like Crysis 2, due to EA wanting people to use their service Origin and some games aren't available on any service - yes you can buy them online but Game allows you to go in and buy a game on the day and take it home, no waiting around.

[beth]

went into there today, some good offers but there was nothing really i wanted that i don't have. saw quite a few DS games for like £1.50

[Chris]

Went into game today, saw a few slashed prices but there wasn't anything too major.

[Chippiewill]

yes you can buy them online but Game allows you to go in and buy a game on the day and take it home, no waiting around.
At most I have to wait an hour for a game to download on steam and that's still going to take less time than getting it in store (btw there's queueing for new releases so no waiting around is a laughable statement), going home and then installing - fun fact, steam game install time is tiny because they use GCFs rather than discs.

And Steam allows you to download the game files in advance of the release date so you don't even have to wait for the download. As far as some games not being on steam, GAME has a terrible selection of games that typically go back a maximum of 18 months. Steam STILL sells the original half-life, HUNDREDS of indie games which have never made it into GAME and even casual games - something which GAME has never sniffed at.

And actually I wouldn't want Steam to have a monopoly anyway like GAME basically has now for most purposes, I'm happy there's origin, I'm happy there's D2D and I'm happy there's Gamer's Gate.

[peteyt]

At most I have to wait an hour for a game to download on steam and that's still going to take less time than getting it in store (btw there's queueing for new releases so no waiting around is a laughable statement), going home and then installing - fun fact, steam game install time is tiny because they use GCFs rather than discs.

And Steam allows you to download the game files in advance of the release date so you don't even have to wait for the download. As far as some games not being on steam, GAME has a terrible selection of games that typically go back a maximum of 18 months. Steam STILL sells the original half-life, HUNDREDS of indie games which have never made it into GAME and even casual games - something which GAME has never sniffed at.

And actually I wouldn't want Steam to have a monopoly anyway like GAME basically has now for most purposes, I'm happy there's origin, I'm happy there's D2D and I'm happy there's Gamer's Gate.

You are forgetting about the people with bad internet - there are people in rural area's still that stuff like Facebook will take ages to load never mind a full game - Maybe they'd rather go in to a store and buy a game then getting it online (e.g. if there is a large town not too far away).

Also I bought sometime in 2011 a like 3 for 10 deal or something and that included the great classic game Theme Hospital which is not available on steam and goes back far longer than 18 months (along with other games I have seen).

The thing is its about choice - I'd prefer to be able to get games different ways e.g. online, locally etc. than been stuck to one choice.

[samsaBEAR]

I've asked my friend to set me back a PS3 so if/when they go bust, and the sale gets better I should be able to nab one for a decent price

[Samantha]

Managed to get 4 games today.

2 at 49p each for the PS2
1 at 99p for PS2
1 at 98p for DS

Thing is though, they're selling some good stuff really cheap, like new stuff too in some cases especially for 3DS.

Also, games that were like £7.99 last week were £4.98 today, so maybe they might just get lower.

[peteyt]

I went in and prices where cut down but I didn't see anything like so much pence unless I was looking at the wrong bits

[Chris]

Some more info. Not sure what I think about this.


GameStation could be dropped in order to save GAME, it has been revealed.

Closing the chain of stores is one of The GAME Group's preferred options to save the company, according to MCV.

GAME will enter voluntary administration before the weekend, which will be resurrected as a brand new company in its wake on Monday.

The move will remove the group from the stock exchange. It will also only include GAME's UK and Spanish stores, while other regions will be left on their own.

Aside from a handful of well performing stores, GameStation will effectively cease to exist, removing duplicate stores owned by the group to save funds.

"If everyone commits it's great news. A GAME with 300+ stores is what we'll all get, which is basically where they should have been three years ago during the peak," said the source.

"There's no need for two, or even three, stores in the same town or city. They get a chance to reduce debt, keep trading and work out a plan for a new owner without so many financial and lease millstones around their necks."

Other options include refinancing the entire company - although this has been reported to be ruled out - the arrival of a 'White Knight' investor, or administration and closure come next week.

GAME is currently holding crunch talks with suppliers in order to raise store rent for this weekend.

http://www.digitalspy.co.uk/gaming/news/a372222/gamestation-could-be-sacrificed-to-save-game.html

[samsaBEAR]

i don't get why they didn't do that sooner tbh, there's no need for two game stores on one high street, especially when they're both run by the same company

[Zuth]

I dont know why but I much prefer GameStation than GAME

[Robbie]

i don't get why they didn't do that sooner tbh, there's no need for two game stores on one high street, especially when they're both run by the same company

i can't remember if it's manchester arndale or the trafford centre, but there are 2 GAME stores there. it's like, WHY have two in the same building..

[xxMATTGxx]

i can't remember if it's manchester arndale or the trafford centre, but there are 2 GAME stores there. it's like, WHY have two in the same building..

Trafford Centre, one was on the top floor and the other was on the bottom floor. I always wondered why they even did that.

[Technologic]

In the trafford centre there's a game directly above a game....

[Neil]

In Stevenage we have a huge GAME at one end of the highstreet, 2-3 minutes straight up the road is a second game and about 3 stores across from that in a GameStation, it's a bit stupid considering Stevenage isn't exactly a massive place.

[Oleh]

In meadowhall theres a Game then another game diagonally across. On the same floor. 1 Shop per shopping area is sufficient.

[Samantha]

You'd think they'd expand their shop a bit if they have one on top of each other, they not thought of joining them up and having different things in each floor?

However, I remember with the new Trinity Walk at Wakefield there were 2 GAME shops and a Gamestation the other GAME one has now shut but it was like why.

Now, when you walk up the street from Iceland, you come upto Gamestation then HMV (then there used to be GAME but has since moved) then Grainger Games then CEX it's really pointless.

[beth]

in birmingham city centre there is a game and a game station a minute apart from eachother with another game station about 2 minutes up the road.

[Chris]

Didn't want to risk losing my game gift cards, so I got 4200 microsoft points today as there was nothing else I wanted.

Also, bit of an update here:



GAME has attracted six potential buyers in the wake of its decision to enter administration.

The GAME Group was delisted from the London Stock Exchange yesterday, before filing for administration in the afternoon.

GAME's UK stores and assets have piqued the interest of six potential bidders, while a further 20 suitors mull over GAME Group's international operations, reports MCV.

As previously reported, GameStop remains keen to expand, while Comet owner OpCapita is not ruling out another bid. Hilco, meanwhile, is interested in GAME's international operations.

Administration means that GAME Group will be protected by its creditors during the ten-day period while it seeks a buyer. An administrator will be appointed this morning.

Closing its chain of GameStation stores is said to be one of the main avenues GAME Group is exploring to save the company.

http://www.digitalspy.co.uk/gaming/news/a372522/game-attracts-six-buyers-for-uk-stores.html

[dbgtz]

Didn't want to risk losing my game gift cards, so I got 4200 microsoft points today as there was nothing else I wanted.

Also, bit of an update here:



http://www.digitalspy.co.uk/gaming/news/a372522/game-attracts-six-buyers-for-uk-stores.html

I wouldn't mind Opcapita buying Game group, they seemed to do well with Comet (considering it hasn't closed down I will assume it is doing well anyway), I just really do not want Gamestop.

[xxMATTGxx]

Looks like it's official now:


Game Group goes into administration

Britain's biggest video game retailer, Game Group, has gone into administration.

It means there are serious doubts about the jobs of the staff at its 1,300 stores, 600 of which are in the UK.

The administrators from PricewaterhouseCoopers said that the retailer had suffered from high fixed costs and an ambitious international expansion.

http://www.bbc.co.uk/news/business-17512143

[AlexHenry]

It's a shame, as always, to see another business fall but their prices are so expensive and most people go online these days...

[xxMATTGxx]

This is what their website currently says:

http://mattgarner.net/upload/images/4upi.png

[Oleh]

I was going to go into gamestation to enquire about a job at half 3 aswell :(, doesn't look like I will now. On one side it's a shame that they're having to do this, but they also overprice games in comparison to other outlets.

[peteyt]

It's a shame, as always, to see another business fall but their prices are so expensive and most people go online these days...


I was going to go into gamestation to enquire about a job at half 3 aswell :(, doesn't look like I will now. On one side it's a shame that they're having to do this, but they also overprice games in comparison to other outlets.

I thought people where complaining their games where too cheap that developers didn't get much - if they are selling new stuff at a decent price then the developers would get a fair price right?

[Oleh]

I thought people where complaining their games where too cheap that developers didn't get much - if they are selling new stuff at a decent price then the developers would get a fair price right?

They have to buy them at a set price from the wholesaler, then gain there £4-5 profit on that. Their downfall is they buy a certain amount of stock and don't make much profit due to several sales = the profit to buy one game. It's why they push for pre-owned due to the profit margin being a whole lot bigger therefore negating the losses on new games.

[Chris]

Apparently 2000 jobs have been lost today. Its such a big shame for them all, especially with the current job problems.

[AlexHenry]

I thought people where complaining their games where too cheap that developers didn't get much - if they are selling new stuff at a decent price then the developers would get a fair price right?

True but they are not selling at a decent price, that's the problem - they're selling above and beyond so that when they get sales they will get more money than for example other outlets. Other outlets are selling them at a fair price and are gaining more sales therefore resulting in overall more profit.

[GommeInc]

True but they are not selling at a decent price, that's the problem - they're selling above and beyond so that when they get sales they will get more money than for example other outlets. Other outlets are selling them at a fair price and are gaining more sales therefore resulting in overall more profit.
Which is a fine example of a Goldilocks Marketing Strategy. You have the find the right market band that sells at just the right price ;)

[peteyt]

True but they are not selling at a decent price, that's the problem - they're selling above and beyond so that when they get sales they will get more money than for example other outlets. Other outlets are selling them at a fair price and are gaining more sales therefore resulting in overall more profit.

But people where saying they where selling them too cheap and stuff so they didn't make a profit for the developers now people are saying they are selling them too expensive. If they are selling them too expensive and getting more profit surely they could work with the developers and give them are fairer percentage

[AlexHenry]

But people where saying they where selling them too cheap and stuff so they didn't make a profit for the developers now people are saying they are selling them too expensive. If they are selling them too expensive and getting more profit surely they could work with the developers and give them are fairer percentage

Yes, they could work with the developers to give them a fair percentage of the price but they are already doing that. They could re-assess the situation to see if they could give money back to the developers which is lower than the amount they are paying at the moment. It's not really got anything to do with the developers - it's to do with the business and paying their staff wages, overheads, shop rentals etc.

---------- Post added 27-03-2012 at 05:31 PM ----------


Which is a fine example of a Goldilocks Marketing Strategy. You have the find the right market band that sells at just the right price ;)

Oooh, check you out! :)

[xxMATTGxx]

PwC can confirm that the joint administrators are liaising with a number of parties who have expressed an interest in purchasing part or all of the business and assets of the group.

However, having reviewed the ongoing operational requirements of the business and with the continued difficulties on the high street, unfortunately it has been necessary to close 277 stores throughout the UK and Ireland as of today. Unfortunately, this will inevitably lead to a number of job losses and 2,074 store employees will be made redundant this week.

The administrators are working closely with employees affected by this decision to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments.

Mike Jervis, joint administrator and partner at PwC said:

“Our priority is to continue trading the business as normal while we continue to pursue a sale. The recent job losses are regrettable but will place the company in a stronger position while we explore opportunities to conclude a sale. My team and I will be doing all we can to help the affected employees at this difficult time.”

The remaining 333 stores employing 2,844 people will stay open as normal while the administrators continue their efforts to find a purchaser for the business.

http://www.ukmediacentre.pwc.com/News-Releases/The-GAME-Group-plc-Game-Stores-Group-Limited-Gameplay-GB-Limited-Game-Stores-Limited-Games-Station-Limited-Game-retail-Limited-Gamestation-Limited-in-administration-Update-1215.aspx

Also taken from their facebook:

In the meantime, we’ve had to make some changes. We’ve summarised them below. Some of them are temporary, some are permanent.




1.Online Sales: We expect some disruption to our online services over the next few days while we make some changes. We apologise for the inconvenience this causes.

2.Refunds and Exchanges: Until further notice, we will not be able to offer refunds or exchanges, unless your item is faulty or not fit for purpose. Your statutory rights will not be affected and we will be able to deal with your refund/exchange accordingly.

3.Pre-Orders: No new pre-orders can be taken until further notice. No refunds can be given for any pre-order deposits which have been paid. We are reviewing this over the next week.

4.GAME Reward card: We have had to suspended use of GAME Reward Cards. This means that points can be earned but NOT redeemed until further notice.

5.Gift cards: We have also had to suspend GAME gift cards. The value on these cards cannot be redeemed. If this changes, we will let you know. We apologise for the inconvenience this causes.

6.GAMEWallet: the value stored in GAMEwallet accounts will be suspended until further notice following the appointment of administrators.

7.Pre-owned Software: You can still buy pre owned products at great prices in your local store or online. If you trade in a pre-owned software item then you will still be able to accrue reward points and use your trade in to exchange for another item. You will not be able to trade in pre-owned software for cash. If this changes, we will let you know. We apologise for the inconvenience this causes.

8.Pre-owned Hardware: We have had to suspend trade in for pre-owned hardware at this time. If this changes, we will let you know. We apologise for the inconvenience this causes.

9.Click and Collect titles: We have had to suspend this service. We apologise for any inconvenience this causes.

[Lamz]

OMG today I tried to get a games just before they closed down & the shelves were empty & the shutters were down 3/4!... :'(

[dbgtz]

Gamestation has closed in my town. I hope it doesn't die as it's one of the biggest company HQs in my town. It was quite funny watching the news on South Today, may have to lol at the person who was interviewed if I ever see her.

[David]

GAME administrators reactivate Reward Cards (http://www.eurogamer.net/articles/2012-03-29-game-administrators-reactivate-reward-cards)

[Chris]

Some hopeful news :D:


A deal could be struck as early as Friday, potentially putting an end to further store closures and job losses.

RBS (The Royal Bank of Scotland), which stalled on a bid last week, has previously been linked with a cut price bid for the business while in administration.

The GAME Group has shut the doors of 277 of its 609 shops in the UK and Ireland, laying off around 40% of its workforce - roughly 2,104 employees - after entering administration earlier this week.

GAME CEO Ian Shepherd resigned from his role with immediate effect after administrators PwC (PricewaterhouseCoopers) were appointed to handle any potential sale.

A number of Irish employees have staged sit-in protests over PwC's unwillingness to pay sacked workers owed holiday pay or redundancy money.

[wixard]

oh my friend works in game and they were told it's just the Irish stores closing? anyway they're not getting paid starting this week and were only told this about 3 days ago and they're PISSED so doing a sit in

[Robbie]

oh my friend works in game and they were told it's just the Irish stores closing? anyway they're not getting paid starting this week and were only told this about 3 days ago and they're PISSED so doing a sit in

sit in probs wont do much, not gonna do anything if they're in administration. won't give a **** about the staff now will they. :( the closest one to me has closed but the gamestation is still open.

[Oleh]

I heard RBS may be forcing their way in, declining another buyers access or something due to them controlling their money.

[Jssy]

the closest ones to me - 2 out of 3 of them has shut down. Still there's gamestation and cex wooo

[Chris]

Game.co.uk is back online! I need to pre-order prototype 2, but I think I'll be doing it elsewhere.

[Chris]

Im sure everyones heard, but game has been saved;



GAME has been saved from administration, according to reports.

A deal has been officially reached with investment firm OpCapita to save the struggling gaming retailer, according to MCV.

OpCapita reportedly amended their original bid that was first reported yesterday (March 31).

The firm are said to have paid a nominal fee in order to seal the claim, in a similar way to how they paid £2 for Comet last year.

However, the deal only applies to GAME's UK business, with their overseas operations still struggling and available to buyers.

Hilco and GameStop are currently still in the hunt to purchase GAME's foreign territories.

It is not confirmed if supply agreements have been made with each UK supplier to GAME, but it is understood that some companies have agreed to return.

OpCapita will set up a new management team tomorrow (April 2).

For the time being, all of GAME's remaining 333 stores and 2,814 UK staff are safe, but none of the closed retail outlets will be reopened.

http://www.digitalspy.co.uk/gaming/news/a374275/game-saved-from-administration-by-opcapita.html

[GommeInc]

Im sure everyones heard, but game has been saved;



http://www.digitalspy.co.uk/gaming/news/a374275/game-saved-from-administration-by-opcapita.html
Begs the question, "But for how long?" There has to be a huge shake up, games are just one type of product that is cheaper to buy online from the convenience of a good chair. It's not like food or clothes, where people want to physically touch the product - there's no actual reason to buy games from a store-based retailer anymore, not a specialist one like Game at least.

[dbgtz]

Begs the question, "But for how long?" There has to be a huge shake up, games are just one type of product that is cheaper to buy online from the convenience of a good chair. It's not like food or clothes, where people want to physically touch the product - there's no actual reason to buy games from a store-based retailer anymore, not a specialist one like Game at least.

There's nothing wrong with the market as such, but there were just too many shops for the amount of demand plus competition from HMV and other retailers meant what Game was doing was completely idiotic. I think if they keep to one store per area they'll do fine for a few years at least.

[Ellz]

the game near me has closed down or is closing down! i liked game :(

[GommeInc]

There's nothing wrong with the market as such, but there were just too many shops for the amount of demand plus competition from HMV and other retailers meant what Game was doing was completely idiotic. I think if they keep to one store per area they'll do fine for a few years at least.
Acquiring Gamestation was a HUGE mistake :P That said, I'm not convinced GAME can be saved or amount to anything special. HMV is barely surviving and its main competition was Game Group Plc, so it doesn't speak wonders for either retailers. Online retailers like Amazon.co.uk are the way forward, with supermarkets like Tesco, Sainsbury's and Asda as the choice for buying a physical game. Consumers are lazy sods these days, they prefer convenience shopping than going for exercise or the experience. It could amount to be a good store, but I can't help but be cynical.

Speaking of which, does anyone remember when GAME opened their online store? I strangely preferred it over Play.com and Amazon at the time.

[dbgtz]

Acquiring Gamestation was a HUGE mistake :P That said, I'm not convinced GAME can be saved or amount to anything special. HMV is barely surviving and its main competition was Game Group Plc, so it doesn't speak wonders for either retailers. Online retailers like Amazon.co.uk are the way forward, with supermarkets like Tesco, Sainsbury's and Asda as the choice for buying a physical game. Consumers are lazy sods these days, they prefer convenience shopping than going for exercise or the experience. It could amount to be a good store, but I can't help but be cynical.

Speaking of which, does anyone remember when GAME opened their online store? I strangely preferred it over Play.com and Amazon at the time.

Acquiring it wasn't a mistake, having multiple GAME and Gamestation stores open in a near distance when clearly it wasn't profitable was the mistake. I doubt we'll ever see a true transition to purchasing online anytime soon if I'm honest, there's always going to be some room for retail. I also liked the Game online store, Amazon is really badly laid out in my opinion and Play.com just got really crap.

[beth]

i heard on the radio earlier today there's a bit of a tax change on importing certain things from the channel islands where a lot of the online big factories were operating from (to take advantage of this loophole) which should make prices a little bit more competitive for game and hopefully give them a bit more of a chance.

[GommeInc]

Acquiring it wasn't a mistake, having multiple GAME and Gamestation stores open in a near distance when clearly it wasn't profitable was the mistake. I doubt we'll ever see a true transition to purchasing online anytime soon if I'm honest, there's always going to be some room for retail. I also liked the Game online store, Amazon is really badly laid out in my opinion and Play.com just got really crap.
Isn't that the mistake? Acquiring both even not at close distance is just competiting with yourself - there's no price differences and no major floor layout differences. They had the power to close their stores but incompetence struck upper-management. They should of dumped the Gamestation store brand in favour of, for example, an in-store brand of service (e.g. an area for enthusiasts, which many experts and Game Group themselves have labelled the Gamestation brand). Specialist stores like GAME simply do not work at the moment, not because of the type of store but on a politico-economical level where the price of renting and letting these stores is simply too high. Plus they neglected offering new, exciting games and their online store which should of been focused more on than their acquisitions and international expansion.

Hopefully OpCapita completely change the way Game operates. The store-style, layout and service was pretty lousy, and Christ knows why they were focusing on pre-owned games when a healthy balance of new and old would be nice. They could give a third of the store to a department called Gamestation where enthusiasts can play new and old games on consoles, and possibly sell old and new games which are rated highly. There's quite a lot of work to do either way, and quite exciting if the mix is done right :P

[Neil]

Isn't that the mistake? Acquiring both even not at close distance is just competiting with yourself - there's no price differences and no major floor layout differences. They had the power to close their stores but incompetence struck upper-management. They should of dumped the Gamestation store brand in favour of, for example, an in-store brand of service (e.g. an area for enthusiasts, which many experts and Game Group themselves have labelled the Gamestation brand). Specialist stores like GAME simply do not work at the moment, not because of the type of store but on a politico-economical level where the price of renting and letting these stores is simply too high. Plus they neglected offering new, exciting games and their online store which should of been focused more on than their acquisitions and international expansion.

Hopefully OpCapita completely change the way Game operates. The store-style, layout and service was pretty lousy, and Christ knows why they were focusing on pre-owned games when a healthy balance of new and old would be nice. They could give a third of the store to a department called Gamestation where enthusiasts can play new and old games on consoles, and possibly sell old and new games which are rated highly. There's quite a lot of work to do either way, and quite exciting if the mix is done right :P

I'm not sure what's wrong with your local store but the GAME and GameStation stores in my area were very much stocked with the latest releases, the only times I've gone into a store to pick up a recently released game and couldn't because they had none was SSX, which was the last game EA sent them, after they sold what they had then that was it.

They focus on pre-owned because it makes them more money, simple as that really, they really need to work something out so publishers/developers get a cut to make it a little fair but money is the reason pre-owned is the focus, it's a business and they are trying to make money, they failed because they were stupid enough not to compete with online stores and supermarkets, if GAME stocked Mass Effect 3 I could go get it now for £38-40, for £25 I could go to Tesco, a 3 minute walk from my GAME store.

I don't fully believe much of the problem was too many stores, certain towns shouldn't of had too many, I had 2 GAMEs and a GameStation all in the same general area, I live in a fairly big town but not so big to require so many stores, even then there has been 2 GAME stores as long as I remember, GameStation has been here since at least 2007, I don't really know so I really don't believe it's all down to the amount of stores, I spoke to the manager of my local store about a year ago and he said himself that the online side of GAME worries about competing with online services while the brick and mortar GAME only worries about other game shops and supermarkets, I feel that's a stupid attitude and that's what needs to change, less stores will also help of course but if they don't try and get better prices then they'll just go down again, I could order just about any game from Amazon and get next day delivery for less than GAME would charge.

On the upside, I'm really glad someone took over, I love having a local game shop, the problem with online is you have to look for what you want, I could go to GAME and see something I'd like while browsing and take it home right then, I don't have that same luxury, I don't get to look at the back of the box and I don't get to pick and choose from heaps of games that are available, of course it is possible and probably cheaper to go to Amazon but who really just looks though all those pages of games?

[GommeInc]

I'm not sure what's wrong with your local store but the GAME and GameStation stores in my area were very much stocked with the latest releases, the only times I've gone into a store to pick up a recently released game and couldn't because they had none was SSX, which was the last game EA sent them, after they sold what they had then that was it.

They focus on pre-owned because it makes them more money, simple as that really, they really need to work something out so publishers/developers get a cut to make it a little fair but money is the reason pre-owned is the focus, it's a business and they are trying to make money, they failed because they were stupid enough not to compete with online stores and supermarkets, if GAME stocked Mass Effect 3 I could go get it now for £38-40, for £25 I could go to Tesco, a 3 minute walk from my GAME store.

I don't fully believe much of the problem was too many stores, certain towns shouldn't of had too many, I had 2 GAMEs and a GameStation all in the same general area, I live in a fairly big town but not so big to require so many stores, even then there has been 2 GAME stores as long as I remember, GameStation has been here since at least 2007, I don't really know so I really don't believe it's all down to the amount of stores, I spoke to the manager of my local store about a year ago and he said himself that the online side of GAME worries about competing with online services while the brick and mortar GAME only worries about other game shops and supermarkets, I feel that's a stupid attitude and that's what needs to change, less stores will also help of course but if they don't try and get better prices then they'll just go down again, I could order just about any game from Amazon and get next day delivery for less than GAME would charge.

On the upside, I'm really glad someone took over, I love having a local game shop, the problem with online is you have to look for what you want, I could go to GAME and see something I'd like while browsing and take it home right then, I don't have that same luxury, I don't get to look at the back of the box and I don't get to pick and choose from heaps of games that are available, of course it is possible and probably cheaper to go to Amazon but who really just looks though all those pages of games?
All the GAME and Gamestation stores I know of are tiny, with far too much space allocated to stocked pre-owned titles - but I do seem to visit old towns which simply do not have the space for large stores :P It was pretty vulgar and an eye-sore to walk into a store with pre-owned titles chucked into the middle and a limited stock on new games, especially when they cost a great deal more to buy compared to online retailers like Amazon and Play.

They cannot really give publishers and developers money from their pre-owned sales for legal reasons. Besides, this would not help them if done privately between developers, as is the case now. A law would have to be re-written to force stores that sells used goods (e.g. cars, games etc) to give a percentage to those that hold any copyright or ownership of the product, which would be a false economy and more harmful than good. GAME would of died sooner if they did this :P

The reason I said all these stores was a bad move was because it seems to be one of main reasons for bankruptcy. The cost of renting buildings is pretty disgusting, and anyone who has read Mary Portas, and any retailer theorists articles about the physical retail environment, would know that this is such a big issue and one of the reasons physical selling is becoming difficult. Obviously if this was the only reason it wouldn't be difficult to overcome, but because GAME did not allocate appropriate funding towards e-commerce, they fell flat on their face when they could of been good competition against Play.com and Amazon. I remember when GAME won the rights to sell special editions of games to sell in-store and online, but now that achievement has been handed over to Play.com.

Like I said though, it would be great if GAME does amount to something now - they really need to overcome this outdated business model and focus on grasping e-commerce and a more streamlined business model. The number of stores did not help, because they're expensive to maintain and keep. One store is enough per major town or city (with two for larger ones), and where the demand is actually there rather than chucking a store in a town or shopping area without research or fore-thought. This has benefited shops like Tesco, Asda, Greggs and others. Every other retailer is getting the picture that more than one store is unsustainable in these times and only worth-while where market research has been done, and it's time GAME saw this too.

[Chippiewill]

GAME simply isn't needed in this economic climate or changing landscape to digital distribution. It certainly is not needed in the four stores form that it was in my city a couple of years ago (These stores were all five minutes walk from each other mind you, one of the GAMEs currently has a Gamestation - NO JOKE - less than twenty metres away, and these are proper size stores not the mini kiosk type things they've been setting up). In my opinion GAME needs to drop their physical presence (Or at least the ridiculous scenario where they need multiple stores within walking talking distance of each other), try to coast on online orders for a while and hopefully get some kind of digital distribution platform up so they can ride that as it takes off, the next-gen consoles won't do physical game media much so I hope they're not dumb enough to hope it will.

[Samantha]

The nearest Game Station near me closed down and so did a few others in surrounding towns. I noticed having going to GAME on Monday that they have merged game and game station together which I think has been a long time in the making as I still didn't understand why they had two stores. Having said that i didn't know that they were the same until a few months previous.

Least some hope is there and help is on hand afterall.

[dbgtz]

Game now stocking Mass Effect 3, I assume now they'll have all EA titles again.

[Technologic]

One of the game stores in the trafford centre has shut down