Looking at a thread on another forum about the pricing of videogames, I decided to make this a thread about the state of play regarding the afore mentioned high-street retailer (and internet retailer)
For many years GAME were the dominant force in the high street when it came to video games, they have had competition (from supermarkets - online) but had maintained a strong performance. Then came the Gamestation takeover in 2007? Which saw GAME add a large number of outlets and a new customer demographic. The company did have a bright outlook but in recent years it seems as if they have started to lose their hold on the market due to a more fierce competition and are losing customers left right and centre. Indeed in the thread on pricing people were commenting (as has been said on here) that prices in store are very expensive and that shopping online from people like Amazon, Shop to etc is a much better experience even when compared to GAME’s online effort.
This is no doubt due to the current state of the economy with people looking to save more on their purchases, I for one would have thought that this would spur a company like GAME on to perform better and compete – however prices in store are rising and policies that were once popular and drew in custom have been changed – for example a GAME store used to be able to price match anywhere locally if they were being undercut however this policy is now void with the company sending out a memo to all managers basically saying that they will no longer honour this but that customers should still buy from us because our service is the best and we have ‘expert knowledge’. Personally I do not agree with this as I would rather save a fiver than be bothered by staff in store and have the hassle of actually going in store when I could order online and get my purchase up to two or three days before release. However GAME seem to be completely oblivious and are pushing ahead with price rises etc and seem to not really care.
On the back of all this predictably GAME’s share price has been in decline for almost a year but in the last few months they have really dropped and are now as of writing at an all time low, now I’m no market expert but with this dramatic slump is it possible we are seeing the last days of GAME as they are and could they fold anytime soon?
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Just to give you an idea here is the share perfromance from august until october and from checking further on the net I can see that the share price has been on a downward spiral since 2010 dropping from around £1.70 to 9p!!!!!!!!
For many years GAME were the dominant force in the high street when it came to video games, they have had competition (from supermarkets - online) but had maintained a strong performance. Then came the Gamestation takeover in 2007? Which saw GAME add a large number of outlets and a new customer demographic. The company did have a bright outlook but in recent years it seems as if they have started to lose their hold on the market due to a more fierce competition and are losing customers left right and centre. Indeed in the thread on pricing people were commenting (as has been said on here) that prices in store are very expensive and that shopping online from people like Amazon, Shop to etc is a much better experience even when compared to GAME’s online effort.
This is no doubt due to the current state of the economy with people looking to save more on their purchases, I for one would have thought that this would spur a company like GAME on to perform better and compete – however prices in store are rising and policies that were once popular and drew in custom have been changed – for example a GAME store used to be able to price match anywhere locally if they were being undercut however this policy is now void with the company sending out a memo to all managers basically saying that they will no longer honour this but that customers should still buy from us because our service is the best and we have ‘expert knowledge’. Personally I do not agree with this as I would rather save a fiver than be bothered by staff in store and have the hassle of actually going in store when I could order online and get my purchase up to two or three days before release. However GAME seem to be completely oblivious and are pushing ahead with price rises etc and seem to not really care.
On the back of all this predictably GAME’s share price has been in decline for almost a year but in the last few months they have really dropped and are now as of writing at an all time low, now I’m no market expert but with this dramatic slump is it possible we are seeing the last days of GAME as they are and could they fold anytime soon?
Uploaded with ImageShack.us
Just to give you an idea here is the share perfromance from august until october and from checking further on the net I can see that the share price has been on a downward spiral since 2010 dropping from around £1.70 to 9p!!!!!!!!
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