GAME confirms talks with lenders have begun, hints at overseas sell-off

By Wesley Yin-Poole Published 2 February, 2012

Review of strategic plan of the company.

Embattled retailer GAME has confirmed it is in talks with its lenders over its current credit troubles.

Its lending syndicate is reviewing the company. In a statement GAME hinted it may sell its overseas operation.

GAME has a strong presence in Europe and Australia. It has 94 shops in Australia, 197 in France, 288 in Spain and Portugal and 67 in Scandinavia.

It claims to be fourth in France and Australia, and the market leader in Spain, Scandinavia and the Czech Republic.

Yesterday Eurogamer reported the specialist retailer had lost its credit insurance with agencies, and was having to pay cash up front for stock.

Given GAME's current cash flow problem, doubt was cast on its ability to sell new releases - but a GAME spokesperson told Eurogamer this Friday's launches would definitely be sold - and guaranteed Vita would be sold in its stores later this month.

Today's statement in full:

"In response to press speculation the GAME Group plc confirms that it is in on-going dialogue with its lending syndicate to reach agreement on revised terms for its facilities. As part of these discussions, the lending syndicate is reviewing a strategic plan of the company which includes a review of its overseas operations.

"A further announcement will be provided once discussions with its lending syndicate have concluded."

Yesterday EA boss John Riccitiello voiced concerns about the financial health of a "major European retail partner" - widely believed to be GAME.

"We are concerned with the financial condition of one of our major European retail partners, which could lead to both increased bad debt and lost sales," he said.

Picture of Wesley.

About Wesley Yin-Poole

Wesley is Eurogamer's news editor. He likes news, interviews, and more news. He also likes Street Fighter more than anyone can get him to shut up about it.

Read more articles from Wesley by visiting the Wesley Yin-Poole archive page.

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Comments (117) Latest comment 3 weeks ago

  • Spong #1 3 weeks ago

    Sounds like a slippery slope to me.

  • Gearskin #2 3 weeks ago

    Quick! We need another 100 comments from armchair businessmen.

    Go, EG!

    EDIT - Armchair businessmen found the Neg button. That's not going to solve the problem.

    EDIT EDIT - Annnnnnnnnnd after over 100 replies, Game got a deal! Good work, chaps!
    Edited by 3 at 02/02/12 @ 19:50

  • onezeonx #3 3 weeks ago

    @Gearskin ill think you will find WE are the most important people in this issue...the customers!

    Don't need to be a businessman to see you will lose money by charging more than others ffs

  • Wedge1985 #4 3 weeks ago

    @Gearskin In my opinion, they're fucked.

    99 to go.

    EDIT: 98 now.
    Edited by 1 at 02/02/12 @ 10:14

  • X201 #5 3 weeks ago

    Next will come a wave of advertising.

    /seen it all before

  • Mnia786 #6 3 weeks ago

    "lending syndicate"
    EG make me laugh every morning :)

  • Coughthulu #7 3 weeks ago

    I do wonder how this is going to affect things like the ME3 CE, which AFAIK, is a Game exclusive. Can they guarantee it'll be sold? Will EA offer it now to other stores?

    How does this work? Does it? :)

  • Gearskin #8 3 weeks ago

    End of the day, who honestly sees GAME, such as it is, falling over? I don't. There's not enough of an outlet for game sales elsewhere and the industry, as a whole, needs their ilk. Unless you see Tesco taking over... though I could then buy a packet of McVities Quirks at the same time as Soul Calibur V...

  • X201 #9 3 weeks ago

    "Its lending Syndicate and borrowing The Witcher 2"

  • persus-9 #10 3 weeks ago

    The whole dedicated game shop model is screwed. They'll be games at retail for the forseeable future, even after it all goes digital they'll still be cards with codes on them. There might also be a space in the market for small high quality games boutiques which would justify their high prices on the basis of also being a social space (much like classy bookshops and some tabletop game shops). But the mass market dedicated game shop model like Game isn't long for this world.

    There, that is my contribution. Just 95 to go now.
    Edited by 1 at 02/02/12 @ 10:31

  • darkmorgado #11 3 weeks ago

    @Gearskin

    Second hand sales will be picked up by CEX and others. In terms of new games, stores such as HMV and Zavvi already offer a better selection of games than Game do, often for better prices. And more and more people buy their games exclusively online through outlets like Shopto which provide excellent service and value.

    The biggest impact that GAME closing down will have is a large impact on the second hand market, which in the long term will actually be good for publishers as more people will be pushed into buying firsthand copies.

  • skizofrenik #12 3 weeks ago

    Looking at their local website (you know, Christmas was more than a month ago..), I think GAME is about to close it's doors in Portugal!

  • simsini #13 3 weeks ago

    This graph shows you everything you need to know about Game.
    Edited by 1 at 02/02/12 @ 10:37

  • Slipstream #14 3 weeks ago

    More importantly, what will happen to Gamestation?

  • ProtoformX #15 3 weeks ago

    It's quite possible that they might fall over, although not in the immediate future. The fact that they are having to confirm things like they will be selling Vita at launch and staff are still being paid is showing something - if these press claims were total rubbish, GAME would dismiss them as such. But instead they seem to be taking the whole thing very seriously in a possible effort to maintain customer and investor confidence.

    It's one slight issue with capitalism that, the moment a company falters then people starting jumping ship like rats. If they'd shown a little more confidence and continued to invest/buy product then the company might have made through the crisis. But instead some people panic and abandon the cause, so more people do, so more people do and so on and so on.

    The obvious thing is that they're being overtaken by the internet. Because gaming is at the forefront of consumer technology, it embraces the internet like few other sectors can and so physical assets suffer. 10 years ago, quite a lot of people were still relatively ignorant of gaming and so they required a shop to go into to receive face-to-face customer service. Now that gaming is at least a background awareness in most peoples' lives, they no longer need that service. Combine that with the better prices that online stores and, in the case of big new releases, supermarkets can offer and there just isn't really the demand for physical specialist stores like there used to be. Some one-offs remain because they're run by true gamers who can provide service above and beyond anywhere else, but for a generic like GAME the future really isn't that bright.

  • cyacomini #16 3 weeks ago

    Shares were up 4% when I checked this morning. Bizarre!

  • Whitster #17 3 weeks ago

    Selling off or closing down their European stores could be a good move. It probably didn't help that they're European expansion happened on the eve of the Euros collapse.

  • StooMonster #18 3 weeks ago

    @cyacomini Look at the past year though

    http://goo.gl/Uy1fR

  • AMagicalCone #19 3 weeks ago

    I used to work at a Gamestation and my other half currently works at Game.

    This isn't surprising at all really, too much emphasis placed on pushing unwanted products, extended warranty, etc and not enough placed on putting the customer first.

    There's going to be an hours review for all stores coming up soon, it wouldn't surprise me if a few staff get let go.

  • rhubarbandcustard #20 3 weeks ago

    @ProtoformX "It's one slight issue with capitalism..."

    Capitalism has more than just one issue, and I wouldn't say it was slight either.

    ht tp://www.guardian.co.uk/business/globalrecession

    Now, where to pre-order my Vita from? Oh yeah, the internet.

    Another several hundred Poundland shops coming to UK high streets soon.

  • scuffpuppies #21 3 weeks ago

    I would never wish for anyone to loose their jobs, but GAME is a cancer in this industry.
    I'm sick of their staff forcing over priced used copies of games rather than new ones, and more often than not a new release is only £5 more expensive than their used copies.

  • Jon1292 #22 3 weeks ago

    My general mentality when walking into game:

    Squeeze past the overcrowding, to find a game in a completely unorganized mess.

    Attempt to find the start of the queue, usually in some sort of cattlepen looking aisle.

    Get to the till:

    Do you have a gamecard? No
    Would you like a gamecard? No
    You know this is a timecard and not the actual game yes? Yes
    Would you like to buy the guide for this game at a discount price? No
    Are you sure, you can't get the deal after you've bought it? No.
    Are you sure your PC can run this game, as you can't return it? Yes
    Do you know about our tra-

    Screw this, Asda's self service tills don't ask me this many stupid questions.

    I've actually walked out before because it took them almost 10 minutes to find my game in the stock room, and I never plan on returning.

  • FortysixterUK #23 3 weeks ago

    Possibly a sell off of Game stores in less profitable areas, or a re branding to an entirely new second hand only business model to take on Cex.
    Or, close the lot and go entirely online.

    They will need to get their act together then. In recent months my Game online account login has stopped working, and a PS3 title I ordered was lost, for which it took 6 weeks to get a refund, only to then get a partial refund.
    I didn't even bother trying to reactivate my online account after that.
    I made sure I spent the tenner I had on my game card in store and now only buy stuff from them in store...if at all.
    Which reminds me...I have £12 on a card from gamestation...that can go towards FF13-2 tomoz methinks. Use it or lose it folks.

    This is Armchair businessman signing off.

  • icematt12 #24 3 weeks ago

    You only have to walk in on gamestation and see that their emphasis is on the pre-owned market. Maybe with things like online passes and consumer spending stratergies, their business model has turned unsustainable.

  • BraveArse #25 3 weeks ago

    Hopefully, this'll mean new management, a different strategy, minimal frontline job losses and a GAME brand that doesn't alienate every core gamer in the country.

    Hopefully.

    As I've said before, I walk straight pass my local GAME these days because I'm tired of being pounced on and can't fucking stand people trying to aggressively upsell me to a game manual at the till. I have a friend that works in GAME and know that there are some good people there, but the current culture at the company really doesn't allow those people to shine IMO.

  • Whitster #26 3 weeks ago

    @AMagicalCone It really is a shame for Gamestation staff. I worked there before the Game takeover and back then there was never any pressure to push second hand or warranties.

    My friend worked there briefly after the Game takeover and it sounded hidious. Although all the guys in my old store seem pretty happy whenever I pop in.

  • king2001 #27 3 weeks ago

    If Game (and possibly Gamestation) do ultimately disappear from our high streets, it would be nice to think that smaller, independant companies might flourish once more.

    I know that the likes of supermarkets and online retailers will account for the bulk of sales, but the niche end of the market is crying out for a decent outlet to shop in!

    /whistles the "Hovis" tune whilst walking down a cobbled lane

  • mtype101 #28 3 weeks ago

    42 quid for cod each year when its only 37.97 at asda i know where i would go.

    They give you shit prices for trade ins then sell them at a quid or two cheaper than a new one. Makes no sense.

    Bye Game

  • jonsaan #29 3 weeks ago

    Does this mean no more free pubes in second hand games?

  • jonsaan #30 3 weeks ago

    @king2001

    Wasn't that part of the reason Gamestation failed though? They used to be good but the imports got stomped on and they became shit overnight.

  • anomagnus #31 3 weeks ago

    @Jon1292

    You don't live in Cork, Ireland do you? Because that is fucking UNCANNY. You've described my game expereince to a tee!

  • levitate #32 3 weeks ago

    The only reason why I set my foot in a HMV or GAME store is to browse cheap games or films, in the vain hope I'll find something. I found a cheap copy of EVE Online just before Christmas 2010 and that's it. Yesterday I was in HMV and found a BD of The Big Lebowski. I thought "great!" until I saw the price tag. 20 quid! Their super-ultra-deluxe box of Tinker, Tailor, Soldier, Spy was £60.

    This morning I checked how much Amazon wants for the same thing - £49.99! You don't have to be Alan Sugar to realise this is madness. Most consumers of film and games are today not prepared to fork out extortionate prices and both GAME and HMV seems to be ignorant of that fact.

    HMV sells a lot of other cool things that perhaps GAME should think about: mugs, books, peripherals etc. Focus more on the customer aspect. HMV's staff aren't constantly in your face and so far none of them have been rude to me but their prices on games and films are ridiculous.

  • X201 #33 3 weeks ago

    @jonsaan

    If there's a gap in the market, some one will fill it.

  • BrotherTobious #34 3 weeks ago

    doesn't surprise me with the amount they charge compared to other retailers.

  • IronCladChicken #35 3 weeks ago

    @Gearskin
    You're right - That's the last thing EG needs... People reading and commenting on their articles!

    The bastards!

  • Farzlepot #36 3 weeks ago

    "GAME has a strong presence in Europe and Australia. It has 94 shops in Australia, 197 in France, 288 in Spain and Portugal and 67 in Scandinavia."

    … and 17,979,532 shops in the UK.

    No wait, I read the stats wrong, that's just on one street in the UK. Sorry, my bad.

  • TURBOKILLFACE53 #37 3 weeks ago

    @Gearskin Mmmmmm Quirks...

  • digitalash #38 3 weeks ago

    I feel sorry for the staff, but did anyone really ever have any affection for GAME anyway? Now when Fopp hit some tough times I was vaguely annoyed. When my local game shop closed down it was a big frowny face. This, does anyone really care who isn't personally invested in it? We'll just buy our games cheaper elsewhere without pushy sales tactics.

  • Jimjamyaha #39 3 weeks ago

    Well I have over £20 on my GAME reward card. And about £100 in gift cards. They better not go anywhere any time soon!

  • coolbritannia #40 3 weeks ago

    This will be a day long remembered. It has seen the beginnings of financial doom for Sony and the death throes of Game.

    If only HMV would follow suit.

  • Pickster #41 3 weeks ago

    The problem I have with Game (and I know I'm not the only one) is the selection of new games.... or I should say lack of.

    I use to like going through the shops and finding some hidden gems. You should be able to count on the specialist game stores to at least offer this, but the only real option given is used games.

    Thats not good enough.

    So I very rarely go into Games stores now. Their loss.

  • Jauffre #42 3 weeks ago

    Its lending syndicate is reviewing the company. In a statement GAME hinted it may sell its overseas operation.
    Cool, can I trade in my old PS3 games for that? :)

  • ChadSexington #43 3 weeks ago

    If Gayme goes, that just leaves HMV and WH Smith as purveyors of crap high street experiences. Hopefully those two will be next.

  • rogbev #44 3 weeks ago

    Honestly, I have never felt so aggrieved over peoples comments than I have about these. One less choice on the high street is just what the supermarkets wanted. What do you guys think will happen when there is no competition left, you will be left paying for it then! You may have saved a couple of quid by shopping at tesco while they offer games at a price that loses them cash with every sale, but ultimately we will all lose out. Game are not overpriced, they just have to make money to survive!

  • Drebbin #45 3 weeks ago

    If I'm totally honest I don't mind that they ask me if I need help the very second my foot touches down on their floor space. I'm even ok with the constant question "do you want a game guide?"

    What really grinds my gears is how between Game and EA they justify a £70 price tag for Mass Effect 3 CE on 360 and PS3?? I'm sure ME2 CE wasn't that much?

    Back on track though it's a shame for all the floor staff. Seems like such a long time ago since they had that 10day no questions ask return policy, when Game seemed interested in your business.

  • playgen #46 3 weeks ago

    @rogbev

    The thing is, Game is the reason why there's often no other choice on the high street. They bought out EB, Gamestation and killed off competition by having towns full of their shops.

    They drive away gamers with annoying pushy sales tactics and a poor selection of new games. I'd gladly pay a bit more to buy on the highstreet rather than waiting for online bought games to be posted, but I'm not paying double for a scruffy second hand copy.

  • Madder-Max #47 3 weeks ago

    @rogbev

    In that case Game should have adapted to tackle the supermarket advance instead of standing still and doing fuck all, waiting for this to happen.

    The peeps at the top probably got bunged by the supermarkets anyway

  • fillip2k #48 3 weeks ago

    I enjoy sitting in my armchair...

  • GavinUK86 #49 3 weeks ago

    I couldn't care less about GAME's retail stores as I only ever order games online. I just hope they can still fulfill online preorders. Im talking about Amular, ME3 CE & MP3 CE.

  • Tyronne #50 3 weeks ago

    But it cannot close!

    Where else am I going to go to be bothered every 30 seconds to see if I need help...and then asked if I need help....and then asked if I need help....and then asked if I need help....AND THEN ASKED AGAIN until I want to turn round and ask for something stupid like `where is the milk?`,` yes, can I have 3 wishes` and `NO, WILL YOU PLEASE FUCK OFF!!!`

    where I am asked countless questions quickly at the checkout like I am taking part in some form of quick quiz.

    Where the queues to the till are a joke and you are forced to go round all the tat before you can actually buy anything.

    Where every single bloody item is stored `upstairs`.

    Where my pre-order for a pc game and its associated bonus dlc is screwed up as the 360 code is put in the bag with my purchase.

    Will I miss Game if it goes? NO.

  • andrewsqual #51 3 weeks ago

    Sony, get those PSVita Kiosks out of those stores quick then. What a waste that was giving them to the store managers too.

  • rudedudejude #52 3 weeks ago

    Yikes I better get my loyalty points spent.

    Expect a rush on the loyalty points, with queues outside like Northern Rock

  • Bullet_Tunnel #53 3 weeks ago

    all that cursing the company when i worked for them actuall paid off!!!, god hears your prayers children, it just takes him a while to get his arse off the couch and sort shit out.

  • BonzoBanana #54 3 weeks ago

    I hate going into Game on a busy weekend. Just too many customers but it seems clear many people like the stores and turnover is good. I've always found them friendly and informed but I guess this varies by store. A high street without Game will probably do a bit of damage to mainstream gaming especially Casual. Not forgetting the extra taxes we will have to pay for extra benefits needed for those out of work. We are in the middle of a nasty recession and the Game retail model seemed pretty good before the recession but would of thought gaming for a lot of people is less important when money is tight.

    I wish the company and its staff well for the future.

  • blarty #55 3 weeks ago

    @rogbev The problem is that whilst one less competitor is one less choice on the high street, Game over the past 3-5 years has become increasingly like other non-gamer centric stores like HMV and indeed Tesco in stocking what sells rather than what might appeal (See the rows and rows of COD & BF3 merchandising for example, where 1 box of each platform would suffice and that would be pushing it). Game had a chance to be a dedicated store for the discerniung gamer on every high street but sold that idea down the river long ago. Instead of differentiating with the supermarkets etc by stocking AND properly merchandising games outside the top 10, it's trying to do it's own things by locking gamers into exclusive access to things like Collector's editions, which coincidentally have seen a large jump in prices in the last 12-14 months.

    Game has had an overreliance on the second-hand market and profiteering from being the greedy middleman between first and second owner; quite simply they must have known, irrespective of what publishers think of pre-owned games, that this party couldn't continue forever - no foresight, no backup plan

  • blarty #56 3 weeks ago

    Most people wouldn't give two hoots about GAME, if it wasn't for their near stranglehold on access to Collector's and Limited Editions of some games. (Yes I know, publishers are also party to this, but still.....).

  • gav082 #57 3 weeks ago

    If only they had folded when gamestation where taking their market share instead of buying them out and dragging them down too

  • KopparbergDave #58 3 weeks ago

    I love how you can understand why they're having difficulties simply by gauging the general opinion in these comments. For one they charge too much for new games and for 2nd hand games they are utter rip off merchants. Secondly they have poor customer service, the kind which focuses on pushing add on sales at the expense of actually treating their customers with respect. Especially the 2nd hand games debacle, I think it's clear they cottoned onto this business model of buying cheap off your customers and then charging back often near full RRP (I've seen 2nd hand games priced £1 cheaper than new before, seriously), and they ran with it and ultimately it will have been their demise as they piss off publishers they need so they have any new stock and force the publishers to take action to reduce the 2nd hand market which then impacts us all regardless of where we purchase our 2nd hand games from. They tried too hard to wring profit from their customer base, dropped the baton majorly on what their core business is and the customers they should be appealing to and in a way I'm happy as it opens the door perhaps for the return of reasonably priced, more niche gaming shops. We can hope. The fact is as someone else mentioned those Games Workshop places always seem pretty busy and they must make decent money as they've been around for ages, why not a games chain like that, have gaming tournaments and game pods, make it a social environment and make money off having a cafe alongside it all, from entry to gaming sessions and of course selling games and cool gaming merchandise. No jumped managers forcing their staff to force needless warranties upon you and so on. Would be nice.

  • TooOldToGame #59 3 weeks ago

    Post deleted at 10:45:50 22-02-2012

  • freethinker101 #60 3 weeks ago

    Well in my opinion I am not surprised they are in trouble, have you been in one recently. The shelves seem bare, the trade in games are pants, and most of the staff seem to have very little interest in being engaging about games, apart from the one in the Oxford Street branch who loved Japanese games and as I had such a good chat I felt compelled to buy one of his suggestions.

    Also the shops feel tired and behind the times, as does most of the high street.

    I know that a lot of the focus is on price, but it isn't just about that. For example my local blockbuster has a great team that love films, and love games. i regularly pop in and chat, and while I may not always buy, when it comes to a new game I will pop in, possibly pay more, but I will feel taken care of.

    Game seem to have lost touch with that, and that is why they are suffering, people want to feel appreciated and Game just isn't doing that and that is why people are buying else where.

    In my experience gamers tend to be a passionate and loyal bunch, and Game just isn't catering to us, so we have voted with our wallets as they were not feeding our hearts!
    Edited by 2 at 02/02/12 @ 13:55

  • TooOldToGame #61 3 weeks ago

    Post deleted at 10:45:50 22-02-2012

  • George-Roper #62 3 weeks ago

    @rogbev

    Honestly, I have never felt so aggrieved over peoples comments than I have about these. One less choice on the high street is just what the supermarkets wanted. What do you guys think will happen when there is no competition left, you will be left paying for it then!

    No we won't, we'll go online and get an infinitely better deal.

    You may have saved a couple of quid by shopping at tesco while they offer games at a price that loses them cash with every sale, but ultimately we will all lose out.

    No we won't. See above.

    Game are not overpriced, they just have to make money to survive!

    Game are overpriced. Their new games are overpriced, their second-hand games are a couple of quid under new (even though they pay a hell of a lot less than that in the first place) and their stores are almost entirely driven by the second hand market.

    The sooner they're gone, the better.

  • MrVengeance #63 3 weeks ago

    They really shouldn't have messed up so bad - I used to love GAME with a passion, even though I used to work for one of their rivals - GAME had great prices, a superb range of NEW games, a nice atmosphere and good staff in their shops. Then...


    Then they became cunts, and now they are fucked. Sad but there you go.

  • erekose200 #64 3 weeks ago

    Die game, die.

  • witchdrash #65 3 weeks ago

    As much as I hate to see the high street game is an abomination, never set foot in there since some friends and I were threatened by the manager in the chesterfield store the police because I mentionned to my friend that the 2nd hand copy of a game was more expensive than the new one, apparently our conversation at normal levels was abusing their staff. So frankly hope they sink.

  • witchdrash #66 3 weeks ago

    @witchdrash Should be a "to call the police" on that (English fail!)

  • witchdrash #67 3 weeks ago

    @witchdrash In that!! Screw you iPhone :)

  • lefizz #68 3 weeks ago

    I have lived in Spain for 3 years and we are swimming in bloody game stores, prices here are horific with 70 euros the standard price for a AAA release. Thing is I always stock up when i am back in the UK. Stopped in Game cheltenham over xmas and after 10 minutes walked out with nothing. Hideous experience. In the end i bought 9 games in one hit in Sainsburys cos they had what i wanted at a price i was willing to pay.

    Game really are a very sloppy company, poor service and constant pushing of crap onto consumers. They have effectively killed themselves off due to poor service brought about by buying up all there competition.Of course Onlline must have had a big impact but i really think that game sales must still be pretty high. IMHO if you cant keep going in the current climate then tough. Hopefully something will replace them but maybe Digital will put paid to anyone investing enough to create another national chain

  • Sponz #69 3 weeks ago

    Electronics Boutique were awesome back in the late 90's, huge selection of games and friendly staff. Then they turned into Game, who were also pretty good for just about anything, and their 10 day no quibble refund policy was awesome. They were the only retailer I would ever think about buying from. I used to pre-order shed loads of stuff in-store and online.

    Then around 2005 (I think) - Their management changed and they started down this 2nd hand game business. Something, as a semi intelligent human being I could not understand. Could not understand why, you would want to trade in a game for like £9, and then see the same 2nd hand game on the shelf for £5 cheaper than a new one. The complete dis interest in PC games turned me away as well.

    What also used to grate with me was the "Do you want to buy this game second hand instead?" "Its £3 pound cheaper."

    They've been exploiting Little Jonny and his limited capital for too long.

    A badly managed and greedy bunch of senior execs at the board level, who will now pay the price of destroying what was once the best place to buy games. Sorry to the staff who will lose jobs, but this lot here:

    http ://www.gamegroup.plc.uk/gmg_plc/about/board/


    Do they even look like they know what a game is?


    h ttp://www.gamegroup.plc.uk/gmg_plc/about/strategy/

    Sorry Mr Shepherd, your strategy has failed matey. You'll have to get rid of the Porsche and Swiss Chalet now.

  • Farzlepot #70 3 weeks ago

    I was just in one of the Wolverhampton game stores, had a chat with a member of staff there (who had originally tried to sell me a pre-order for the various games out tomorrow) and he was very uncertain about his future when I asked him about the financial troubles Game have been having. All he's been told is that pre-orders placed for certain games like Mass Effect 3 will be honoured unless they are recent, and he had no idea how long his job was going to last.

    He was a nice guy, and it's conversations like that, with just one of the thousands of dudes on the front lines, that illustrate how tragic it will be if Game do go under.

    I've been on the receiving end of redundancy as I'm sure many others here have lately, and it's not fun. It's for their sake I hope Game can overcome their issues.

  • addugg #71 3 weeks ago

    Hello.

    My name is Regenold Esquire III. I invented business.

    To make money, one must take an item and sell it for less than everyone else.

    Repeat a few times.

    Then profit!

    Thanks for reading.

  • freethinker101 #72 3 weeks ago

    @Sponz Ishbel looks like she could go a few rounds on Teken

  • kangarootoo #73 3 weeks ago

    "Don't need to be a businessman to see you will lose money by charging more than others ffs"

    Stating that you will lose money if you charge more than your competitors is basically nonsense. By that logic, ALL companies lose money except for the sole company that sells the products most cheaply (there can of course only be on such company). Do you really think that is true?

    So to say you don't need to be a business man to "see that", is proably true. In fact you need to NOT be a businessman to see it.

  • Whitster #74 3 weeks ago

    @Farzlepot Nice to see a clear headed and reasoned comment rather than. "Rarggh, Game, Rarggh, rabble, rabble, sack them all"

  • SlackMaster #75 3 weeks ago

    I think after buying Gamestation, Game pretty much monopolised as a specialist game retailer on the high street. If Game was to shrink because of their financial problems and have less stores about maybe it'd open things up for a little more competition.

  • TheLastProphet #76 3 weeks ago

    On a personal/individual level, none of want to see more people losing their jobs and joining the dole queue.

    However on a general/business level there will not be a lot to miss if GAME goes into liquidation - very high prices, very poor trade-in prices, pushy sales tactics, over-priced 'exclusives', poor customer service, poor range of games, and many other issues highlighted in the comments above.

    People like Gearskin need not be annoyed with the 'armchair businessmen' commenting on this, but with the real businessmen who got GAME into this hole.

  • Collymilad #77 3 weeks ago

    @Gearskin Sorry, but there are some things in business that GAME have gotten drastically wrong that aren't exactly fucking rocket science.

    It's cool though, you're probably 10x smarter than anyone on this site, eh?

  • goldbug #78 3 weeks ago

    Unappealing, poorly laid-out shops with staff to match. AND they're overpriced. Not much to recommend that place.

  • kangarootoo #79 3 weeks ago

    Its not just a matter of being smart or daft. Some things just take time to change. It may be that the future isn't clear when the decision HAS to be made, and when eventually you realise the decision wasn't quite the right one, its too late.

    The biggest issue facing GAME has always been their investment in bricks and mortar. If you own hundreds of shops around the globe, you can't just shut them all down overnight in response to a growth in online sales. Not least because doing so would wipe out your profits overnight and kill the companyt (if GAME closed all their stores, all those sales would not end up at GAME's own website, so simply closing the shops is no solution - even selling the shops is likely to result in the same plunge in profits).

    So they had to somehow deal with this online future that was unavoidably trundling their way, but the plan to deal with it HAD to take years to run its course. Its extremely hard to make a plan years in duration, and have it play out exactly as you hoped, mainly because that plan is affected by a shit ton of external factors that could never be within your control.


    I've been quite clear about WHY I think GAME are in trouble, but if you took any one of us 7 years into the past with the knowledge we now have, I bet not one of us to have done a better job of sorting it out. Sometimes in business, there really is no guaranteed successful plan that you simply have to discover to make it all ok.

    So I'm all for lots of discussion, about this and any other subject, but all I think Gearskin was saying is that when loads of us start posts with something like "Its simple, they should have XYZ..." or "They failed because they are stupid", we are almost inevetitably full of shit.
    Edited by 1 at 02/02/12 @ 16:12

  • kangarootoo #80 3 weeks ago

    @addugg

    "To make money, one must take an item and sell it for less than everyone else."

    Stop saying that! Its just not true.

    ;)

  • midnight_walker #81 3 weeks ago

    Our strategy

    Our vision is to be our customers' first choice for all of their gaming needs.

    In February 2011 CEO Ian Shepherd outlined a clear strategy to achieve this, called Dedicated to Gaming.

    It has five drivers for growth which build on our current business strengths.

    We will:
    Grow our web and digital business dramatically,

    Ensure our great stores work seamlessly with our web offering,

    Deliver the very best range of games and gaming products to customers, including products you can’t buy anywhere else,

    Make games more affordable by creating different ways to buy and own them

    Build on our amazing Reward and Elite loyalty cards by developing personalised communications with all of our customers to make sure we give them the best advice.
    It's all a load of bollocks really, but the bit in bold is the part that most confuses me. It's something people have been banging on about for ages, and something Game have utterly failed to do, and I'd say it's a lot of the reason why people turn away when they walk in. They've said they'd sort it this time last year, but it seems like they've just sat back and loled for a year after outlining the NEW STRATEGY.

    And HOW exactly have they made games more affordable? And how many ways are there to buy and own one?

    Fail.
    Edited by 1 at 02/02/12 @ 16:14

  • goldbug #82 3 weeks ago

    One thing I think Game could do to save itself is focus on EITHER new releases OR second-hand. Having both in the same space muddies the concept. I personally never - or at least very rarely - buy second-hand games, so if I go in looking for a new release and I'm greeted by a changeable, crutty-looking selection of games, I am instantly turned off.

    If I only bought second-hand games, though, I would only resent seeing the new releases proudly displayed on the next shelf for only a slightly higher price.

    They are two very different shopping experiences, appealing to different customer bases, and trying to make every store serve both is a dangerous game (if you'll pardon the pun).

  • StooMonster #83 3 weeks ago

    @addugg To make money, one must take an item and sell it for less than everyone else.

    You didn't invent business, that's but one generic strategy.

    There are several ways to make money, other than cost leadership in the market, such as differentiation or niche (sometimes known as focus) strategies. :)

  • kangarootoo #84 3 weeks ago

    @midnight_walker

    Totally agree with your comment about the section you put in bold. Differing prices for online and in-store has always made my vision blur with rage.

    I can understand that it is cheaper to sell stuff online, but if a company insists on having bricks and online outlets, I expect them to manage the costs internally. Not reveal them to me the cutomer in all their nonsensical glory.



    I generally don't like mission statements anyway. They serve no purpose other than to fill a gap that people think should be filled. They don't actually inform the way the business is run (cart and horse, backwards, etc).

  • Farzlepot #85 3 weeks ago

    @kangarootoo

    As someone who is now forced to work in retail (Tesco specifically) I can say that online and in-store are effectively treated as separate entities; prices, special offers and all.

  • Forte22 #86 3 weeks ago

    Can we knock one thing on the head please? GAME is in trouble because the overall size of the gaming market has shrunk dramatically year on year, driven by console sales and accessories to a degree (Kinect was massive in 2010 at christmas. Can't have been as big in 2011). GAME's share of the software market has actually gone up year on year so technically whilst some people are turning away from GAME they have been able to actually be a bigger piece of the gaming pie.

    The problem is that their cost base is too high for the size of the market now. That's the real killer for them and its not a quick fix as outlined eloquently by @kangarootoo.

    Not saying that they couldn't do with improving their offering, stores, website, etc because they could but customers turning away is not the reason they are in trouble.

  • Xeopuppy #87 3 weeks ago

    I hope this doesn't affect Gamestation, I prefer Gamestation to Game.

  • Madder-Max #88 3 weeks ago

    ""To make money, one must take an item and sell it for less than everyone else."

    Wrong.

    To make money you must deliver a product to market for les than you charge for it....unless it is a loss leader in a raft of other products being sold for more than they cost to deliver to market.

    If you cannot sell a single product on its own for more than it cost to take to market you do not have a business. End of.

    If you sell the product for more than your competitors without an additional USP or tangible value, you do not have a business.

    If you ignore fundamental changes in consumer behavior and do not adapt to new and more efficient market delivery methods you do not have a busness.

    i think the last 2 points apply to Game.

  • Madder-Max #89 3 weeks ago

    "customers turning away is not the reason they are in trouble. "

    Riiiight. Come again?

  • SlackMaster #90 3 weeks ago

    I went into HMV this lunch and took a quick glance at the Wii games. They had a pre-owned Skywards Sword without its manual selling for £37.99... This practice is why stores like HMV and Game aren't prospering selling videogames.

  • Forte22 #91 3 weeks ago

    @Madder-Max Then how do you explain their market share increasing? I'm not saying its not happening but their share couldn't be going up if it was the main reason for their decline.

  • kangarootoo #92 3 weeks ago

    @Madder-Max

    "If you sell the product for more than your competitors without an additional USP or tangible value, you do not have a business."

    Well that isn't necessarily true either. Every rule you just laid down is being broken somewhere by somebody successfully making money.


    Everytime someone lays down "to make money, do XYZ", we will be able to think of an exception without too much effort, because the truth isn't as simple as these basic rules everyone seems so fond of.


    Business is complex, and success in business depends on a multitude of factors (many of which are not within the business manager's control).

    That one "this is how business works" post is quickly followed by another "no, THIS is how business works" post (that is quickly followed by another) shows how little any of us actually know about business.


    If you asked a proper businessman "How do you make money?", he/she would probably ask you to clarify the question.

  • Incarta #93 3 weeks ago

    well, I got store credit in Gamestation and HMV. I got FF13-2 and Soul Calibur V to buy. Think i'll go spend my credit... just in case

  • Bastian101 #94 3 weeks ago

    As someone who managed a successful Game store for over three years until last year I am not surprised at their current predicament. In the last 18 months of my time working for Game it seemed they were more interested in market share than making profit.

  • Bastian101 #95 3 weeks ago

    Just to add to my last comment ..at no time as a manager working for Game was allowed to see a profit and loss report for my store .. this in my view made it impossible to run my store as a business. When I started with the company the natural enthusiasm of the staff meant that customers had a place they felt comfortable to come and chat about gaming and would trust staff to give good honest advice ...far from what you will experience today

  • penniegrim #96 3 weeks ago

    Live in Sweden and I'll hope they will stay around. Prefer them over GameStop any day (who bought up and destroyed Sweden's only retail chain for RPG games). GAME is my only source for retail Games and I have had no problem with costumer services. But I do buy all my games from their online store. Everything works like a charm :)

  • masterofchaz #97 3 weeks ago

    I worked in Game over the christmas period. It does sadden me that its future looks grim, because I got along with a lot of the staff and genuinely enjoyed working there. But business is business and the economic shit storm is hitting everyone hard.

    The store that I worked in was actually one of two shops in the same shopping centre (there was a game station in the high street). There has always been the business to keep both stores open, don't know what is going to happen now - of course. I remember a lot of the permanent staff were angry over the lack of hours. At one point it was more profitable for one of the managers to take a week's paid annual leave rather than work the hours according to the timetable.

    That said, whilst working there, its easy to see why they're losing business. The stock post christmas was in embarrassingly short supply. We were sold out of Arkham City, Saints Row: The Third and Skyrim for about a week. Haemorrhaging money then...

    I still maintain its the best place to buy a console though.

  • Darklightside #98 3 weeks ago

    To think they started life as Future Zone years ago. They changed their name to EB bought the original Game group (which where a nice company)rebranded all their stores Game when they fell out with the USA EB and bought Gamestation. The problem was they just bought out all their competition as soon as others started to do better than them. All this did was make them think they did not have to compete.

    They should never have been allowed to buy Gamestation as all they did was get rid of the retro section and force prices up. How was this good for the consumer Mr competition commission?

    I lost count of the times I have gone in there and not found the game I wanted. Remember the end of the Gamecube where they did not stock any new releases.

    The service as well over the years I have had the staff do the following....

    1. Put wrong game in Box
    2. Put no disc in the box
    3. Not run my game card though as the store was "Really busy"
    4. Given the wrong game format to what I had given to the staff
    5. Told by staff that per-order content was on the disc when it was a download code
    6. Charged wrong price
    7. Staff failed to remove alarm tag
    8. lost track of the number of times they could not find the game.
    9. Given staff a LE box from the shelf only to be told they only had the normal one
    10. Bought a new game only for the disc to look like a dog's dinner

    How many problems have I had from amazon none and the games are always nice and sealed. Just look at the L.A Noire Complete Edition on console try and find that in a game store new. This is why they are failing
    Edited by 1 at 02/02/12 @ 18:07

  • addugg #99 3 weeks ago

    @StooMonster My name isn't Regenold Esquire III either.

    I'll be sure to label joke posts as such in the future.

    And yes I'm aware of other stratergies. I only mentioned this one, because it's a fundimental stratergy that helps out struggling companies like GAME.

    GAME's problem is that they didn't evolve over time. The Gamestation move made them complacent, and you cannot become complacent within retail.

    /Rant

  • Tiel #100 3 weeks ago

    that's 100. stop now

  • secombe #101 3 weeks ago

    Ensure our great stores work seamlessly with our web offering
    I appreciate everything is easy to fix in hindsight, but seriously, how many years has it now been staggeringly clear that online is absolutely critical in this area?

    Yes, I know it costs more to run a store than to ship online. As a customer, that's really not my problem and you don't need to spell it out by displaying vastly differing prices across your group.

    If the behemoth that is DSG Retail can offer a 'click and collect' service that actually works very well, why can't a chain that offers a far smaller and easier to manage range of products do it?

  • redneon Verified Programmer, SUMO Digital #102 3 weeks ago

    I just went into my local Game to buy Resident Evil: Revelations and a Frankenstick and it would have set me back £59. I walked out empty handed. No wonder they're in trouble.

  • Dunneh #103 3 weeks ago

    Gamestop will buy them i reckon

  • sugarbaron #104 3 weeks ago

    I'm gonna wait a few months and then buy them for £1.

  • Letsalljusthavefun #105 3 weeks ago

    Personal thoughts: It's just not a very good video game shop.

    A good game shop (to me) would be one that actually points out decent new releases, pushes people to try things out of their preferred genre and relegates blatant shovel-ware releases to the back shelf.

    They did none of these things, instead choosing to capitalise on the casual market influx brought in by the Wii. Since the Wii has now lost some of it's popularity, it only stands to reason that it's pursuit of the casual market is not going to provide a consistent cash flow. It's for this reason also that I will not mourn it's disappearance in the slightest, if it were to occur.

  • RGeefe #106 3 weeks ago

    Until the crash of CD sales, a lot of bands would tour as a way to get people interested in a new album - be it through in-store signings, live shows or festival appearances. Of course now touring is about the only money-maker in music.

    Perhaps Game could adopt a similar model - use the shops as a way to encourage people to the site and digital sales. "Is your internet slow at home but you want the new Grand Theft Auto DLC? Order it online at a cheaper price then come instore to quickly download the data onto a USB".

    What game have in their favour is that the UK's internet is appalling, by and large (I believe it's ranked 27th in the developed world). Some people don't even HAVE internet and kids might only have a certain amount of "internet time" after school.

    I know the whole USB thing isn't exactly feasible as a physical product is still being sold but clearly there needs to be a bridge between online and retail. I try not to buy physical copies of stuff, preferring to rent it. It just takes up space and becomes redundant after a few years.

    Will I be sad to see Game go? Not at all. Shortly before Christmas I went in and was ambushed by TWO teenage (about 17) temps whose only job was to ask me questions and get in my way. When you have to ask the staff to move so you can get at the product - you're doing something wrong.

    Also - first post!


    The post that hurts the most.

  • Bastian101 #107 3 weeks ago

    @Forte22 try buying a copy of skyrim at Game ..you can't because they sold them all at christmas at cost ...great market share and zero profit ...they did it earlier in the year with consoles just before announcing figures to share holders so they could claim to still be doing good business

  • Bastian101 #108 3 weeks ago

    @RGeefe Game and Gamestation have a tiny camera over the door counting every person that enters that store..one of the tagets the store is set is to "convert" each visitor into a transaction..that's why the staff are badgering you

  • Graveland #109 3 weeks ago

    Ah well, Game is a crap company that genuinely deserves to go bust. Capitalism 101 - if you charge more than your rivals and offer an inferior service you will fail. Simples.

  • cowell #110 3 weeks ago

    http://www.mcvuk.com/news/read/lender -support-throws-game-a-lifeline/090627

    Deal agreed with lenders. Those buying flowers for the funeral prematurely may want to find some other grave to stand by

  • Graveland #111 3 weeks ago

    @cowell

    Nah, it's more a case of "Weekend at Bernie's" rather than a genuine lifeline.

  • StooMonster #112 3 weeks ago

    @addugg

    Ooops, accidental humour bypass. :p

    Edit: actually, part of GAME's problem is that they have a mixture of strategies rather than one, which is a common cause of failure in business.
    Edited by 1 at 02/02/12 @ 20:48

  • espibara #113 3 weeks ago

    GAME just fuck off and Die

    1. Stop treating your CUSTOMERS like potential robbing chavvy cunts.
    2. STop making browsing and buying videogames within a game store such a fucking horrible experience.
    3. YES I know how much games are on the net so, NO I'm not paying £39.99 for a pube and lice infected preowned copy of Ridge Racer on the 360 in store.
    4. I WILL NEVER WANT A FUCKING LOYALTY CARD!!!!!!!!!!!!!!!!!!
    5. I am not stupid for not wanting a fucking loyalty card.
    6. If I said I dont need any help, you should appreciated I still dont need any help 2, 5, 8 and 12 minutes later.
    7. My Mrs who waits for me in the game store is not interested in buying Pippa Funnel own your own horse on the DS.
    8. When you say you have no games in stock make sure there aren't 20+ copies in the glass fucking cabinet behind you.


    The possibilities for selling video games is endless, see the fucking Apple store for example, of a how a store should be done.

  • SheffAl #114 3 weeks ago

    Die Game.

  • Forte22 #115 3 weeks ago

    @Bastian101 Yeah but I bet they got funding for that from Bethesda....

  • Cardiff1 #116 3 weeks ago

    I for one would be sorry to see them go under. However....
    No amount of loyalty is going to make me pay £50 extra for a 3G Vita with no memory card or game.

  • addugg #117 3 weeks ago

    @StooMonster That is right on the money!

    They overcomplicate everything and sometimes business isn't rocketsciene. Sometimes the most simple and straight forward ideas work, so long as you pick one, and see it thorugh.