GAME - Gamestation, about to fold?

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According to the source, GAME is potentially in a lot of trouble:

http://www.nowgamer.com/news/1228070/uk_retailer_game_publishers_to_withold_new_games_source.html

UK high street retailer Game has "lost credit assurance with most of its publishers," meaning it won't be given stock of upcoming game releases, a source has told NowGamer.

If true, it could have a huge impact on the upcoming PS Vita launch, as well as anticipated games such as Mass Effect 3, SSX and Twisted Metal.

Game struggled over the traditionally profitable festive period last year, with year-on-year sales down 17.6 per cent in the UK and Ireland for the eight weeks ending 7 January.

Our source said Game has "lost credit assurance with most of its publishers," and "won't have stock of the upcoming releases."

The source added that there is also speculation within the company that staff's wages will be withheld in an attempt to boost the retailer's year end figures in March, with a press release set to outline the company's stance.

Two weeks ago, Game CEO Ian Shepherd recently told MCV: "We take our relationships with our partners in the industry very seriously. Without them we are nothing. And without us I think the video games industry would be a very different and much smaller place. We support each other and we have done a very good job of it over the last year."

He also conceded that Game "had a bad year financially," in 2011 and that "2012 will also be a difficult and challenging environment in which to trade."

"I don’t think the consumer economy is suddenly going to turn around anytime soon," Shepherd said. "And so we will be very careful. But fundamentally the wider context is, we have a clear vision about where we are taking this business. And when I talk to investors and banks, I hear a great deal of support for that strategy."
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With a follow up comment of:
Simon Soffe, Communications Director for Game Group, has contacted NowGamer to confirm that all staff pay is up to date as of yesterday. He added that this week's new releases, such as Final Fantasy XIII-2, Metal Gear Solid HD Collection and Soul Calibur 5 are currently moving through Game's distribution centres for launch on Friday.
Game isl talking to publishing partners - including Sony - regarding future launches, for which the retailer has big plans, Soffe added.

He also clarified that credit insurance is an option for publishers, and that the industry "has been supportive" during the last few weeks.
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There is also a Eurogamer article backing up such sources, explaining that whilst GAME can still get hold of new releases as above, it no longer has the 'sale or return' deal with publishers as it doesn't have credit insurance. This probably explains the lack of MGS HD on the website, and Soul Calibur stock issues, presumably as GAME is buying the least it can get away with from the publishers, in case it is left with stock it cant shift, and also because it now has to buy upfront with cash, not easy for a struggling business.

http://www.eurogamer.net/articles/2012-02-01-game-in-trouble-as-doubt-cast-on-ability-to-stock-new-games
 
Booner! said:
I just had an email which suggests they are in a very bad position...both GS and Game. That said, I can't see anything happening in the near future...Abandon ship while you still can!
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News is catching up, I can't go into details as I am concious of legality's within my industry...!

http://www.eurogamer.net/articles/2...e-as-doubt-cast-on-ability-to-stock-new-games

ORIGINAL STORY: UK shop GAME appears to be in trouble after doubt was cast on its ability to buy new games.

Eurogamer has heard from multiple UK industry sources that the specialist video game retailer has lost credit insurance with a number of publishers.

This means that publishers are now forced to take the risk on games that do not sell - something they do not wish to do.

GAME is now being asked by publishers to pay for new stock up front with cash. If GAME doesn't have the cash, it could result in the shop being unable to stock new games.
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Sounds like they are on the brink then when this news spreads who wants to place pre-orders with them if some of the publishers are not prepared to give them stock on credit.
 
Lads serious question, I've had SCV + The Official Guide preordered with these guys since a few weeks ago. The game is out on Friday and I still don't have a dispatch email, infact the money hasn't even been debited from my account yet, should I get my rearend moving and order somewhere else if I want my stuff for day of release? =(
 
The mysterious source said:
The source added that there is also speculation within the company that staff's wages will be withheld in an attempt to boost the retailer's year end figures in March, with a press release set to outline the company's stance.
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Only if their auditors are inept.
 
Well if you read the above, Game's Communications Director said that Soul Calibur was one of the titles currently moving through their distribution chain at the moment for release date.

If anything, I would think that a preorder is an indicator of stock they need, as it's almost a guaranteed sale, so I don't see why you wouldn't get it.


I think we have to look at the bigger picture, yes Game are in a bit of trouble, I predicted it myself before Christmas, but if anything, the main risk they have with having to pay for the stock is that they won't take chances on games which they think aren't big sellers.

For example, they would have no qualms about ordering ton of stock of a new Call of Duty title, but not so much for a new Red Faction game. Game are still a big UK high street player, so if Developers start to loose sales on their less successful titles because Game aren't stocking them, they might have to rethink things.

What still surprises me is that they haven't scrapped the Gamestation brand yet, especially with in most cases, both stores operating on the same high streets and shopping malls. There must surely be instant savings in overheads there.
 
Nexus said:
What still surprises me is that they haven't scrapped the Gamestation brand yet, especially with in most cases, both stores operating on the same high streets and shopping malls. There must surely be instant savings in overheads there.
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It depends on sales per square footage of shop and where the footfall occurs. In the Manchester Arndale, there's two Game shops and a Gamestation. If three shops make three times the sales of one shop, then there's an argument for keeping them all. If one of them makes rubbish sales while the other two are fine, then ditch that one. It's probably a fairly subtle, subjective thing.
 
Doesn’t sound too promising for the GAME Group, being asked to pay in cash for any stock is a clear indication suppliers don’t want to take the risk stock isn’t paid for or returned un-sold if administrators are appointed.

Problem with GAME and GAMESTATION is their second hand market, they are cash convertors for gamers, take in your unwanted consoles and games for cash, to which they can put back on the shelf for a few quid less then a new copy.

Number of times I would see a recent release (Batman Arkham City being one of them) £39.99 new, £34.99 second hand…. Online code most certainly used, meaning a further £7.99 + for a code makes it a rather expensive game actually.

Their whole business model appears to be about pushing the second hand market, and I’m fairly sure publishers and developers aren’t too happy to see their latest game on the shelves next to a second hand copy for a fiver less..!!

Its going to be sad news for the staff, after all it’s a job and it’ll increase the number of un-employed if they do falter, be amazed if they close altogether I suspect store closures and acquisitions will be something we could see, or as with peacocks and many others recently, appoint administrators and try and sell as a going concern..

I still remember GAME stores as Future Zone… Wow that’s going back a few years. And Electronics Boutique….
 
This is not a good trend. We have a local GAME were we are and also had another very successful games store called GameStop both in the same shopping center
I went down on sat and found that GameStop had closed down, no clearance sale no warning, just shut up shop completely, apparently the staff were told on their last day that, that was that.
They just had posters saying closed for good please shop online.

It was always so busy in that store, but again you could argue that it was the best place to trade games, maybe the second hand trading is causing the issue.

Scary no matter what way you look at it!!
 
iv-tecman said:
Its going to be sad news for the staff, after all it’s a job and it’ll increase the number of un-employed if they do falter,
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This is the only reason I'd hope they don't go under. But... It's looking like it will happen.

The way they deal with the used market has made these stores poor places to shop.
Best to forget that both Game and Gamestation exist and just order elsewhere.

iv-tecman said:
And Electronics Boutique….
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Happier days, when there was a massive PC selection and the game boxes could easily be used as temporary accomodation.
 
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Yes? The share price has collapsed by 97% and now publishers wont even extend them credit on stock, it's pretty grim. There are reports that they are even having trouble stocking the shelves.
 
Just seen on Twitter the new FF, MGS HD and SCV have come into their warehouse and they're starting to sort through things. Unless it get dispatched today I'm not expecting my copy of SCV for Friday.
 
anticonscience said:
Do people really think they are going to go under?
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What with stock troubles, share prices falling and lack of credit insurance providing the articles being published about GAME Group are acurate then its not looking too good for the company at present.

I'd be very reluntant at this moment in time to pre order anything from them and wouldn't want to have a credit note with them at this present time.

Stock troubles and lack of obtaining stock are always clear indicators something is a miss, we'll see in the coming months if GAME Groups is indeed in dire troubles...

Over in the PC section most are saying its due to lack of PC support, its not I just think its online retailers selling the games cheaper then GAMES second hand prices.. Who wants a game second hand when its cheaper online brand new?

I also feel sorry for parents fleeced over the last few years by the GAME Group. They are known for pushing goods at parents who don't know too much about what they are buying..
 
I must admit, I pre-ordered MGS HD collection from them at lunch to use up my vouchers from christams, will probably buy some points as well to use them all up in one go.

Don't want to be left empty handed IF they do go under.
 
ebay for 2nd hand and invisible hand and google for brand new.

i don't see why people are complaining, physical stores really don't offer any advantages apart from guaranteed to get it on release date, im surprised if most people are actually bothered about getting a game the minute it comes out, im sure if you have waited 3 years for it to be made, then you can wait another day or two at max.

plus the price of a game dramatically drops in 95% of cases (COD is the only franchise i can think of which doesn't) weeks after release.

i waited and waited and managed to get fifa for half the price it was at launch brand new a few weeks later. probably a 1/3rd of the price it was in game at launch.

online shopping is the future, companies make more profit also online, it makes more sense for everyone apart from the people who need to have the game in their hands on launch day.
 
AWPC said:
Sounds like they are on the brink then when this news spreads who wants to place pre-orders with them if some of the publishers are not prepared to give them stock on credit.
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Good point. If todays news becomes common knowledge to the average bloke in the street/on the internet (probably getting blown up in the process, think chinese whispers) there won't be many left willing to place pre-orders with GAME, given the vast array of choices elsewhere that can offer the same products.

I don't think they're about to disappear though. More likely they'll close down excess stores, or at worst enter administration and elements/all of the company be bought by another.
 
A shame if they go as I still buy from there. That's if I can dodge the massively over helpful staff almost rugby tackling you to ask if they can be of any assistance. The last one looked puzzled when I got fed up and said "I really doubt it". It's one of those American shopping experiences I wish had stayed in America. Engage the customer whether they want it or not. Shame they cut back on pc stock too.
 
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