Associate
Madness really they bought GS at the height of the boom whilst DSG was coming to the end of a multi year process of winding up their own high street contention.
GAME lose another supplier
- Thread starter PiKe
- Start date
Madness really they bought GS at the height of the boom whilst DSG was coming to the end of a multi year process of winding up their own high street contention.
Soldato
I've read that Gamestop is thinking of buying them? Wouldn't be surprised if true, saves them messing about setting up show when they can just change the fascia.
No idea if Gamestop is as bad with the pricing as GAME/Gamestation though.
No idea if Gamestop is as bad with the pricing as GAME/Gamestation though.
Man of Honour
I was wondering about that, it'll be interesting to see where it turns up.Watch as it miraculously appears on XBLA and PSN for a price
Don
Stolen from my post! Tart
The original one in Telford by the bus station was EB. When they became GAME, a new one opened up.
Then a gamestation 3 doors down. Beggars belief.
Soldato
As I know someone that works for the above company, he explained to me what was basically happening.
Game have a credit facility offered by the banks, this was removed a while ago because they were having financial issues, and it wouldnt be re-instated unless they agreed to certain terms and conditions. One of those was obviously to manage money better.
As part of this agreement they were to negotiate with all distributers the terms of the credit facilities and rather than pay everyone different amounts everyone agreed to a set figure, apart from nintendo and EA who both wanted more because they are a "big brand name"
As the terms and conditions set out by the banks who control the credit insurance for Game, game could not agree to this, EA/Nintendo basically if you cant pay more, we wont supply you with stock. Game said fine don't supply us then.
Game is not in trouble at all, sure not stocking 1 AAA title like Mass Effect may well have a short term impact on the business but new game sales have drop so drastically over the past year that they really arent worried about it. They are actually now in a much better position financially than they have ever been.
Go back a year or two and a AAA title would have sold 60-80,000 copies through Game, now its more like 20,000 and the profit margins are so low on new titles its hardly worth the hassle of jeopodising the company because EA/Nintendo are being greedy and wont agree to the same terms as every other distributer/publisher.
Game have a credit facility offered by the banks, this was removed a while ago because they were having financial issues, and it wouldnt be re-instated unless they agreed to certain terms and conditions. One of those was obviously to manage money better.
As part of this agreement they were to negotiate with all distributers the terms of the credit facilities and rather than pay everyone different amounts everyone agreed to a set figure, apart from nintendo and EA who both wanted more because they are a "big brand name"
As the terms and conditions set out by the banks who control the credit insurance for Game, game could not agree to this, EA/Nintendo basically if you cant pay more, we wont supply you with stock. Game said fine don't supply us then.
Game is not in trouble at all, sure not stocking 1 AAA title like Mass Effect may well have a short term impact on the business but new game sales have drop so drastically over the past year that they really arent worried about it. They are actually now in a much better position financially than they have ever been.
Go back a year or two and a AAA title would have sold 60-80,000 copies through Game, now its more like 20,000 and the profit margins are so low on new titles its hardly worth the hassle of jeopodising the company because EA/Nintendo are being greedy and wont agree to the same terms as every other distributer/publisher.
^The problem is, if customers can't get the games they want from GAME, they'll start ignoring them completely and they'll look to other places like HMV, indie stores or supermarkets.
This move might improve their financial situation, but it's going to have a far more damaging effect on their sales and image. If a dedicated games retailer can't even sell games properly, why bother?
This move might improve their financial situation, but it's going to have a far more damaging effect on their sales and image. If a dedicated games retailer can't even sell games properly, why bother?
Went into my local GAME and they had no posters up or anything. Most odd.
Also how long before they have pre-owned copied of ME3 for sale second hand at £39.99? Anyone want a bet they will be buying copies from local suppliers?
Also how long before they have pre-owned copied of ME3 for sale second hand at £39.99? Anyone want a bet they will be buying copies from local suppliers?
I'm sorry but really?
I'll admit that there is a lot of unwarranted hysteria and malicious rumour surronding GAME's situation but there is no point ignoring the obvious fact that they as a company are in big trouble and that if things dont change very soon they'll be gone
One of the problems with multiple stores is the leases.
While you can shut that store it may still have 5 years to go on the lease (10 year leases are not unusal) and you will have to continue paying the rent so it's better to try and trade and pay for it rather than make even bigger losses.
So you have Game stuck with some EB and Gamestation leases they probably don't want but economically it makes more sense to keep it open with minimal costs to try and pay for itself.
While you can shut that store it may still have 5 years to go on the lease (10 year leases are not unusal) and you will have to continue paying the rent so it's better to try and trade and pay for it rather than make even bigger losses.
So you have Game stuck with some EB and Gamestation leases they probably don't want but economically it makes more sense to keep it open with minimal costs to try and pay for itself.
Soldato
Really didn't think Game would ever struggle tbh, are people really no longer buying games from them? Due to their loyalty points I always go with them for my pre-orders, fair enough in store prices are a bit steep but then so are HMV's so is this simply a case of their stores struggling or is it an end for them full stop?
I can't believe that shopto and the supermarkets sell more games than Game themselves
I can't believe that shopto and the supermarkets sell more games than Game themselves
Soldato
I think starting to sell preowned games ****ed off a few companies...
Soldato
Very sad indeed. Been using them since the 90s - Will never use gamestation after some bad experiences with them.
Soldato
Well EA do love their 'online passes'
Indeed, so do Ubisoft incidentally.
Associate
I really don't see how they're in anyway in a better financial position then they ever have been. They've always needed a good Christmas for profitability over the year and they failed there.
The shares have lost 30% this year alone reaching a low of 3p from an all time high of nearly £3 in 2008.
The shares have lost 30% this year alone reaching a low of 3p from an all time high of nearly £3 in 2008.
Soldato
gamestations website is ******* awful.
its terrible, if you try "price low to high" its just mixes everything up