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Rumour: GAME stores to close?

AHA-Lambda

Member
Ok, I admit I'm unfamiliar with this site but this story popped up on my feed this morning

Game Digital has told its shareholders it has lost “significant” levels of credit insurance after the second year of poor Christmas trading. This means that big companies would not lend to the company in form of stock. This is a repeat of what happened in early 2012 when companies like EA, Activision and Microsoft would not lend to the group.

We have been informed by a GAME employee that the future for the company relies on E3. He asks to remain anonymous but said:

“Staff are fearing for their jobs as we don’t know what the future holds. We have been told it all relies on E3 and what the companies announce, along with demand of up and coming games. We have had a poor few years as the transition to next-gen for consumers did not happen as quick as anticipated”

Even with 60 million “next-gen” consoles sold world-wide it has taken a few years and much longer than industry specialists thought it would for people to upgrade.

“We need something new to sell” our source said, “However the rumored upgraded Xbox and PlayStation Consoles are not what people want just yet, it’s just too early as people have only recently made the transition. Nintendo are keeping quiet about the NX and it’s still uncertain if they will release before April 2017 (this financial year)”.

“At present EA have cut ties with us and we can’t get the stock, that’s going to have a huge impact on us with the AAA games they have coming out towards the end of the year, at present we have only been given enough stock to fulfil Pre-Orders for Mirrors Edge. If this is a poor E3, or things are not coming out till later 2017 we are in serious danger of mass closure!

http://www.outoflives.net/2016/05/28/game-stores-to-close/

Lock if old or considered unreliable.
 

Lucifon

Junior Member
The prices they charge in store are insane. It's no surprise they struggle outside of impulse buyers and non-educated ones.

At the very least they should charge the same in store as online, not £50+ for a new release.
 
Paging Brera etc etc

GAME doesn't do itself any favors, but it'll be a sorry day for its many employees and for the UK market at large if they do go under.


Why would EA cut ties with them?

No money. Little assets, so bad credit, too. There's rumours going around that if you go and buy a new Sony game from them this week it'll have a sticker saying "Property of Sony until sold" -- IE, Sony is basically giving them games on a promise and asking them to pay back afterwards because they can't afford to buy them. This is exactly what happened when they almost went under last time - some companies (like EA) said tough luck, no products for you if you can't buy the stock while others tried to throw them a bone.
 

Daffy Duck

Member
But EA also have Battlefied 1 with GAME.

I can certainly see some truth in the story of them closing but I doubt it relies on E3 as stuff shown there is a year or two out anyway.
 

Amon-Lau

Member
I hope so, tired of them taking everything as exclusive...
It sucks for the employees but GAME itself I don't care for..
 
The prices they charge in store are insane. It's no surprise they struggle outside of impulse buyers and non-educated ones.

At the very least they should charge the same in store as online, not £50+ for a new release.

Fully agree, their prices are insane. I have not bought anything from them for a long time, not sure why anyone would when supermarkets stock most games and consoles and are way more competitively priced.
 
So, they are going to have another fire sale?

It was both fun and sad the last time (with me knowing many of the people from local game store losing their jobs)
 

Kyari

Member
I was confused as to why so many publishers immediately started throwing exclusives and etc at them weeks after they solved their last stint at bankruptcy.
 
Paging Brera etc etc

GAME doesn't do itself any favors, but it'll be a sorry day for its many employees and for the UK market at large if they do go under.




No money. Little assets, so bad credit, too. There's rumours going around that if you go and buy a new Sony game from them this week it'll have a sticker saying "Property of Sony until sold" -- IE, Sony is basically giving them games on a promise and asking them to pay back afterwards because they can't afford to buy them. This is exactly what happened when they almost went under last time - some companies (like EA) said tough luck, no products for you if you can't buy the stock while others tried to throw them a bone.

I was bought a gift from game earlier this year and it had that sticker on, think it was Tearaway for PS4
 
I feel like used game sales are what really got retailers going last gen. This gen I get the impression that used games don't sell as good as they used to.
 
I was confused as to why so many publishers immediately started throwing exclusives and etc at them weeks after they solved their last stint at bankruptcy.
Because really their presence in the retail market being confined to a small kiosk next to the DVDS and Blu-Rays in Tesco is probably not a good thing.
 

Son Of D

Member
It'll be sad to be honest. Not just because of the job losses but because there would be no real on-street retailer in the UK (at least outside of independent chains) for games. Supermarkets have limited stock of mostly just the biggest releases (your Call of Duties, your Fifas, your Uncharteds etc.), HMV had even worse prices than GAME for the most part, Argos... well they're basically like HMV with an occasional good sale and CEX is just used items (I'm not going to buy Overwatch pre-owned for £45).

I was confused as to why so many publishers immediately started throwing exclusives and etc at them weeks after they solved their last stint at bankruptcy.

I think it's GAME themselves paying for the deals. The publishers get paid for the exclusive deals, GAME (hypothetically) get extra customers who buy their pre-owned stock and other merchandise. That and there aren't any other options for games in stores to get a good amount of shelf space.
 

Vol5

Member
The prices are crazy when you can buy the same releases in Tesco for £10 or £15 cheaper. And I don't buy this rubbish about stock or how Tesco can buy more games for less. We are talking about a nationwide outlet who should have the power to sell at least the same as other bricks and mortar stores. The shareholders are simply strangling the last amount of money out of the business to line their pockets.

I emailed Game specifically to ask why their prices are so high about 6 months back and their response was it's in line with other regional sellers, which quite frankly is bullshit, again, because I can walk into Tesco and buy the games way cheaper.
 

Zafir

Member
I just got sent an email earlier this week that they'd just opened another store near me. Seems a bit weird if they're going to close it weeks after. :p
 

Roufianos

Member
They can fuck off with that slow adoption bullshit. Next-Gen has taken off way quicker than anticipated.

The real problem is there ridiculous pricing and shitty customer service.
 

Kyari

Member
Also they tried to diversify into used phones/electronics which is a fiercely competitive field, which seemed like a poor move.

It's a legitimate shame they bought out gamestation all those years ago. They went to the effort to buy in merch, soundtracks, used retro games and etc. :/
 
No money. Little assets, so bad credit, too. There's rumours going around that if you go and buy a new Sony game from them this week it'll have a sticker saying "Property of Sony until sold" -- IE, Sony is basically giving them games on a promise and asking them to pay back afterwards because they can't afford to buy them. This is exactly what happened when they almost went under last time - some companies (like EA) said tough luck, no products for you if you can't buy the stock while others tried to throw them a bone.

That was on my copy of Uncharted 4 Special Edition I bought from GAME Online at release, thought it was strange.
 

Kuraudo

Banned
I feel like used game sales are what really got retailers going last gen. This gen I get the impression that used games don't sell as good as they used to.

I think a lot of people just don't use GAME anymore. CEX offers much better rates and take everything, so if you're having a clear-out it's much easier to just hawk your old games, DVDs, CDs, tablets, etc. at the one place.

That and I think a lot of people are realising that it's actually easier to sell the game yourself on eBay or the like. After fees, you'll still end up significantly better off than you would taking it to GAME *and* the buyer ends up paying less, so it's a win-win situation.
 

AHA-Lambda

Member
Paging Brera etc etc

GAME doesn't do itself any favors, but it'll be a sorry day for its many employees and for the UK market at large if they do go under.




No money. Little assets, so bad credit, too. There's rumours going around that if you go and buy a new Sony game from them this week it'll have a sticker saying "Property of Sony until sold" -- IE, Sony is basically giving them games on a promise and asking them to pay back afterwards because they can't afford to buy them. This is exactly what happened when they almost went under last time - some companies (like EA) said tough luck, no products for you if you can't buy the stock while others tried to throw them a bone.

Again the Sony sticker thing happened last time too fwiw
 
Yeah when I worked there years ago there seemed to be regular fallouts with EA. They'd ask us to display gave like the Sims prominently and things and Head Office decided not to so then EA limited our stock of upcoming games for a while.
 

winstano

Member
Paging Brera...

But also, fuck GAME. I feel for the staff, but the management of everything to do with that company is atrocious. Exclusive special editions that they over sell or just fuck up with the shipping, overpriced in store promotions, it's ridiculous.
 

Son Of D

Member
Thinking about cancelling my FFXV pre-order before I go away for the summer and even if I just get credit back I'll just buy a PSN card.
 
"We have been informed by a GAME employee that the future for the company relies on E3. He asks to remain anonymous but said:

“Staff are fearing for their jobs as we don’t know what the future holds. We have been told it all relies on E3 and what the companies announce, along with demand of up and coming games. We have had a poor few years as the transition to next-gen for consumers did not happen as quick as anticipated”"


I find it hard to believe that some teenager in a GAME store in Basingstoke or somewhere has access to this kind of insider knowledge, to be honest. It's not like GAME are sending out memos going "uh oh!"

That's not to say that GAME isn't in bad shape because it's never really been in good shape, but I'd definitely question the source of this particular story.
 

Vashetti

Banned
Instore prices are shocking, staff bombard you as soon as you enter the store

They haven't seemed to have learnt anything since the last time they went under
 

satriales

Member
I haven't been to GAME for years but the last time I went in one it was basically a car boot sale with the amount of 2nd hand stuff they were selling, and the prices for new games were insane. I can't really think of a reason you'd want to shop there.
 
Millions of consoles won't help game because they're extortionate. They have so many stupid things,they cut a bunch down but are slowly bringing them back.

Did you know they now provide broadband? They're honestly supposed to offer broadband to console buyers. They also offer finance now, desperate for money. It is the worst run company I've ever seen.

As for those stickers on PS4 boxes, they've been on them for a while...as long as I can remember actually. I'd go as far as saying they've always been there? Unless they always have been, but only at GAME.
 

finley83

Banned
"We have been informed by a GAME employee that the future for the company relies on E3. He asks to remain anonymous but said:

“Staff are fearing for their jobs as we don’t know what the future holds. We have been told it all relies on E3 and what the companies announce, along with demand of up and coming games. We have had a poor few years as the transition to next-gen for consumers did not happen as quick as anticipated”"


I find it hard to believe that some teenager in a GAME store in Basingstoke or somewhere has access to this kind of insider knowledge, to be honest. It's not like GAME are sending out memos going "uh oh!"

That's not to say that GAME isn't in bad shape because it's never really been in good shape, but I'd definitely question the source of this particular story.

Game will also have plenty of accountants, analysts and middle management, who would be concerned about exactly this. Don't forget that budgeting and cash forecasting will place significant emphasis on new announcements and pre-orders.
 
I can't really think of a reason you'd want to shop there.

People shop there to trade old stuff in. They shop there because it's on the high street so they can impulse buy stuff. People shop there because they don't like shopping online (still, in 2016). People shop there because they're too lazy to shop around.

Various reasons.

Game will also have plenty of accountants, analysts and middle management, who would be concerned about exactly this. Don't forget that budgeting and cash forecasting will place significant emphasis on new announcements and pre-orders.

I think those people would be educated enough to realise the implications of leaking a story like this.
 

Ambient80

Member
How can they blame the current gen of consoles as not selling fast enough when they're the fastest selling gen of consoles to date? Seems rather silly.
 
GAME in Ireland shut all their stores a few years ago. Not surprised to see traditional retailers beginning to struggle. Gamestop at least will have a few years due to their investment as a publisher. The rest will get squeezed out.
 

Dunkers92

Member
No money. Little assets, so bad credit, too. There's rumours going around that if you go and buy a new Sony game from them this week it'll have a sticker saying "Property of Sony until sold" -- IE, Sony is basically giving them games on a promise and asking them to pay back afterwards because they can't afford to buy them. This is exactly what happened when they almost went under last time - some companies (like EA) said tough luck, no products for you if you can't buy the stock while others tried to throw them a bone.

Sony games from GAME have had this sticker on them since 2012 lol. So it isn't new

I have to question the validity of the "adoption in new gen hardware hasn't been as good as expected" because that is untrue in literally every way.

And EA haven't cut ties with them. At least not as far as I can see. They've just secured exclusivity on the Battlefield 1 collectors edition.

As a person who works for GAME, we have heard nothing of the sort. The most any body has heard is the content of the MCV article about the loss of some credit insurance
 
"We have been informed by a GAME employee that the future for the company relies on E3. He asks to remain anonymous but said:

“Staff are fearing for their jobs as we don’t know what the future holds. We have been told it all relies on E3 and what the companies announce, along with demand of up and coming games. We have had a poor few years as the transition to next-gen for consumers did not happen as quick as anticipated”"


I find it hard to believe that some teenager in a GAME store in Basingstoke or somewhere has access to this kind of insider knowledge, to be honest. It's not like GAME are sending out memos going "uh oh!"

That's not to say that GAME isn't in bad shape because it's never really been in good shape, but I'd definitely question the source of this particular story.

FWIW, back when I worked there when I was at uni and stuff, we were 100% briefed in store level on things like when there were supply tiffs with publishers. I remember specifically an email coming down, years and years ago now, where there'd been supply difficulties with EA and we were told all about it and to remove all EA games from the top charts out on the store and "Not to promote EA games directly," things like that.

I fully believe the "we have been told it all rides on E3," too as that stinks of the classic GAME upper management scaremongering (justified or not) to try to get staff to really forcefully drive pre-orders during the show buzz. A lot of that depends on who your regional manager is, too, as it always seemed like some of them were more into the politics of fear than others. That's not to say whoever made these comments is actually specifically clued in to a good level; usually the store staff are, I find, tactically misinformed, or lied to by omission, told some stuff but missing the bigger picture.

As a person who works for the company, we have heard nothing of the sort. The most any body has heard is the content of the MCV article about the loss of some credit insurance

Didn't know that Sony stuff never went away - that's pretty weird (and potentially telling) in itself, huh.

RE Credit Insurance, the loss of it to such a large figure is not insignificant, but obviously it's not the doom bells tolling. It is the first step down a darker path, though, so hopefully they reverse that soon with a strong holiday period.
 

CMDBob

Member
And yet GAME are opening a new store in Sheffield. Got the email a few weeks back and seen them kitting out the store. GAME really baffle me at times.
 

thenexus6

Member
GAME are terrible, there is literally no reason to shop there. Unless you want to get ripped off.

I'll feel bad for the people loosing their jobs, but thats it.
 
Went in a GAME store the other day for the first time in years and couldn't believe the prices on new games! If retail games are going to be priced that high, I might as well just buy digital games at Sony's crazy PSN store price points.
 

gofreak

GAF's Bob Woodward
I remember my Vita having that 'property of Sony computer entertainment until sold' sticker. It wasn't long til that Game store (and the rest in Ireland) shut :/ GameStop is here now but even they seem to be diversifying, most of their stores now are half game store, half merchandise store.

The likes of Argos eat these guys for lunch now on pricing, here at least.
 

Dunkers92

Member
Didn't know that Sony stuff never went away - that's pretty weird (and potentially telling) in itself, huh.

RE Credit Insurance, the loss of it to such a large figure is not insignificant, but obviously it's not the doom bells tolling. It is the first step down a darker path, though, so hopefully they reverse that soon with a strong holiday period.

Of course, I'm not gonna lie and say it is slightly worrying. This article in particular honestly sounds like some store employees getting a bit hyperbolic about the MCV article.

Yep GAME have lost some credit insurance, but apart from that nothing else has been communicated
 
The prices are outrageous. I mean seriously, they sell new games in store for £50-55 when you can find online retailers selling for £30-35 on launch. I do go every few months or so to get codes for the Pokemon events they host though so it'll be annoying if they go under as TPCi's second choice for Pokemon events is Smyths which are much less in number and harder to get to.

It wouldn't be at all surprising if they went under though. Online retailers need less land, can buy what land they need cheaper (as it doesn't need to be in a central business district), less employees and less energy. So they can sell their products cheaper and in many cases still get games delivered day one. Coupled with the fast rise of digital downloads on consoles and they have far less customers than in, say, 2008 as they've lost the people who like convenience to digital downloads and the people who like cheap prices to online retailers. Another problem for the industry as a whole is that game prices don't seem to rise with inflation.

They've tried to expand into toys, mobile phones and films and also tried to push pre-orders and "disk insurance" down people's throats to get more money out of each person per visit. It's pretty obvious that dedicated games retail in the UK is dead.
 
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