GAME in trouble?

[Razaak]

Just saw this posted on another forum I frequent:

If you've got any credit in video game retailer GAME, then you might want to spend it soon. Rumours about credit trouble have been swirling for a little while now but today they have had to confirm that they've failed to secure favourable credit terms with EA and will not be stocking their March releases.

This includes AAA title Mass Effect 3 (for which GAME had the exclusive Collectors Edition) and big seller Tiger Woods.

Furthermore Nintendo have revealed that Mario Party 9, another fairly major release, will not be stocked by GAME.

 

[thatbloke]

Eurogamer have an update on this - long story short, they are screwed.

They will be stocking ME3 (but NOT the Collector's Edition) and SSX, but after that, no further EA titles.

It really is no big loss in my opinion. My opinion of them went massively downwards when they started bitching about online distribution models like Steam eating into their profits, particularly pre-owned and DLC sales. SORRY WHAT? The fact that they had had the audacity to blame their problems on the PC market when GAME stores haven't stocked PC games other than The Sims and WoW for the past 7 years totally and utterly pissed me off. The fact that publishers then actually bought into some of this bullshit and delayed releases of PC games on Steam because of this then REALLY pissed me off (see: WH40K: Space Marine)

Will it leave a hole in the market? Probably. Will someone else be able to pick up the slack? You betcha. Will I care that they are gone? nope.

 

[Xylak]

Retail stores in most sectors are dying out thanks to the internet. People often use stores to view and compare physical products, they buy online from stores who do not have a physical presence and are, therefore, able to offer product at lower prices.

Game is no different and they're doing all they can - including spurious claims for lost revenue - to keep their business afloat. It won't be long until there are pretty much no retail game shops at all and everything will be delivered digitally or mail-order only.

The times they are a-changin'

 

[Panda with issues...]

Die dinosaur business models, die!

They won't go quietly into the night though, there's already been kicking and screaming, and I suspect that there will be more death throws.

I feel for the retail jockeys that will lose their jobs in the current employment climate, and I suspect that the higher ups (who have fatally mismanaged GAME) will simply waltz into similar high paid management jobs.

In some ways the recession has been a blessing. It's probably killed these archaic businesses far quicker than it otherwise may have taken.

 

[Silk]

*Their

 

[Panda with issues...]

*Their

Indeed!

 

[Silk]

Indeed!

*cuddles*

 

[Ki!ler-Mk1]

I don't know why credit matters, in the length of time game has been running, how can they have not built up capital, why do they need credit for major releases.

I've not shopped there since they re-branded from electronics boutique. Its certainly not a bleak time to get into delivery services.

Its sounds as if the model was fucked from the start.

 

[Traxata]

I don't know why credit matters, in the length of time game has been running, how can they have not built up capital, why do they need credit for major releases.

I've not shopped there since they re-branded from electronics boutique. Its certainly not a bleak time to get into delivery services.

Its sounds as if the model was fucked from the start.

Credit means they order thousands of a game, and pay nothing until they sell it.

Once it's sold then the publisher gets their share (what ever the price is they've agreed on) The business model means if it doesn't sell, they're not stuck with dead stock. They go back to the publisher or the publisher says you can offer X% off.

 

[thatbloke]

I don't know why credit matters, in the length of time game has been running, how can they have not built up capital, why do they need credit for major releases.

I've not shopped there since they re-branded from electronics boutique. Its certainly not a bleak time to get into delivery services.

Its sounds as if the model was fucked from the start.

I wouldn't say it was fucked from the start, but like a number of other companies and industries out there, they have totally failed to take into account the effect that the Internet would have on their business, attempting to stick to business models that just will not work with the Internet being out there.

As with evolution - you need to adapt to your surroundings to survive, and they are one of a growing list of companies that are blaming the Internet for their problems, rather than embracing it and using it to their advantage.

The problem is the brand is now massively on its way down, so they will likely not be able to recover.

 

[bacon]

The problem is the brand is now massively on its way down, so they will likely not be able to recover.

It also won't help that everyone who has GAME gift cards and/or points will now likely go and spend them meaning that GAME's outgoings on sold titles will increase but their income won't.

 

[Silk]

I don't know why credit matters, in the length of time game has been running, how can they have not built up capital, why do they need credit for major releases.

I've not shopped there since they re-branded from electronics boutique. Its certainly not a bleak time to get into delivery services.

Its sounds as if the model was fucked from the start.

I worked there when it was EB

 

[Ghostwolf67]

I guess for most of us who play the pc they died a long time ago anyway. Strange that they managed to hold out this long really.

Cant remember last time i went into a game... even browsing.

 

[Ki!ler-Mk1]

I wouldn't say it was fucked from the start

Given what trax added, i retract that.

 

[Kasatka]

I worked there when it was EB

EB was infinitely better, but then there weren't digital vendors back then. Also Gamestation is better than Game as it caters more to re-selling so they require less initial capital than Game, despite being subsidiaries of the same company afaik.

 

[Xarlaxas]

Just noticed that the GAME website won't let me cancel pre-orders anymore. . . .

I find that worrying. . . .

 

[Spicypixel]

They'll be gone soon.

 

[Wol]

Just noticed that the GAME website won't let me cancel pre-orders anymore. . . .

I find that worrying. . . .

They'll be gone soon.

Just like your money Xar

 

[Haven]

It would be nice to see some small independent boutique style gaming shops open up. Much like the old role play shops you used to see (before we all started playing computer games and killled them off). Places that are part LAN centre and part shop can do well if they are well run with enthusiasm and a genuine enjoyment of the medium. I think there's plenty of room in the high street for the right creative approach to selling games and the experience/social along with it.

Basically if Amazon/Play can do what you do then your business model is fucked right now and its time to figure out a unique selling point.

The same comments apply to book stores - they are next on the hit list - if they don't start moving with the times they will be killed off as well. Time to get those authors signing in-store as well as other events and socials based around the love of books.

 

[bacon]

It would be nice to see some small independent boutique style gaming shops open up. Much like the old role play shops you used to see (before we all started playing computer games and killled them off).

There are still Games Workshop's around the UK. Never really been in one so I'm not sure what they offer beyond table-top gaming.