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[peanutbutterlatte]

I can't fault them for not competing against Supermarkets since from what I understand, many Supermarkets have no problem taking a loss on games if it gets customers in the door buying other non-gaming related goods. Since GAME is a specialist retailer, if they took a loss on all games, they would go out of business very quickly.

(not defending them at all, just saying, I don't compare them to supermarkets nor do I blame them for not taking a loss on games by price matching supermarkets)

See supermarkets aren't even being competitive anymore though. Nowhere charges under £45 for a new AAA game now. In prior years, you could get the latest release in ASDA for £30, massively undercutting Game. I blame the supermarkets getting greedy for Game's continued survival actually.

Also the service in store this Christmas is pretty shocking across the board. They've got 2 people on tills whilst 4 clerks are on the floor trying to peddle unneccesary shite.

 

[Terbinator]

http://m.neogaf.com/showpost.php?p=157417072

Lol

 

[Chris1]

See supermarkets aren't even being competitive anymore though. Nowhere charges under £45 for a new AAA game now. In prior years, you could get the latest release in ASDA for £30, massively undercutting Game. I blame the supermarkets getting greedy for Game's continued survival actually.

Also the service in store this Christmas is pretty shocking across the board. They've got 2 people on tills whilst 4 clerks are on the floor trying to peddle unneccesary shite.

Yeah ASDA and other supermarkets have increased their prices ever since next gen started. Before that you could get brand new games for 35-39 now they're all a minimum 45.

 

[SaucyJack]

Still struggling to compute the logic behind a near £100m increase in current gen being MORE THAN OFFSET by a £30m fall in last gen.

 

[Mr. Sam]

Still struggling to compute the logic behind a near £100m increase in current gen being MORE THAN OFFSET by a £30m fall in last gen.

The £100m increase was for the entirety of the UK, the £30m fall was specific to GAME, if I read the article correctly.

 

[goonergaz]

If you were GAME how would you solve the problem, the price that we pay from many online retailers or supermarkets is close to cost. That's before you even consider how many of those companies we are purchasing from have questionable tax or employment practices.

I know how retail markup works, they have big markups on software and merchandise - if they were more reasonable then people might be more inclined to pay a little extra...but they are ripping the backside by selling at full RRP

 

[madmackem]

It really is a shame though if we are left without a real game centric retailer on the high street. It must be something stopping them matching online and super markets more than them being big bad nasty game. Online stores don't have over heads and supermarkets use games as a loss leader to get you shopping there. I'd love for them to turn it around offer better service and be more price competitive but it's not going to happen and given they killed many many independent game stores around the country I'm not sure we should be sad to see them in the shit other than they've taken down so many games stores that all we are left with is game and when that's gone there won't be many others selling just games.

 

[barneystuta83]

For all their issues (of which there are many), it will be a sad day if/when there will be no high street retail game 'specialist'.

 

[J4g3r]

See supermarkets aren't even being competitive anymore though. Nowhere charges under £45 for a new AAA game now. In prior years, you could get the latest release in ASDA for £30, massively undercutting Game. I blame the supermarkets getting greedy for Game's continued survival actually.

Also the service in store this Christmas is pretty shocking across the board. They've got 2 people on tills whilst 4 clerks are on the floor trying to peddle unneccesary shite.

Supermarkets are still cheaper than GAME though, especially on release day. GAME always mark up their prices at launch.

A recent example was when I went to pick up Just Cause 3. My local GAME were selling it on release day for £49.99. All it took was a minute walk to get it for £42 from Tesco.

 

[Stuart444]

See supermarkets aren't even being competitive anymore though. Nowhere charges under £45 for a new AAA game now. In prior years, you could get the latest release in ASDA for £30, massively undercutting Game. I blame the supermarkets getting greedy for Game's continued survival actually.

Also the service in store this Christmas is pretty shocking across the board. They've got 2 people on tills whilst 4 clerks are on the floor trying to peddle unneccesary shite.

Huh, well I've not been to the game section of any supermarket in a while so I'm probably out of touch but this was true just a few years ago.

Maybe the prices of new AAA games are up because next gen game wholesale prices are more expensive (than last gen games) so they need to raise prices to keep making a profit? I don't know, just guessing.

 

[Slair]

 

[Amon-Lau]

Like I care, I'm tired of them taking every CE that comes out and make it exclusive to 'em...

 

[Roufianos]

Good. Their prices for both new and used games are absolutely outrageous and their customer service is dog shit.

 

[geordiemp]

For all their issues (of which there are many), it will be a sad day if/when there will be no high street retail game 'specialist'.

I can only think of when VR takes off, does not matter if your into PC VR or PS4 VR, as consumers we will need a bricks and motar shop to try the technology.

VR hardware makers will need shops like Game in UK as the only UK wide retailer specialising in gaming.

 

[amardilo]

I pretty much used to buy solely from GAME last gen but I stopped buying from them since I went pretty much all digital this gen.

If GAME sold more console games digitally and didn't just sell them at RRP I'd buy from them a lot more again.

In fact if they sold games digitally with all their pre-order stuff and extras I'd buy from them again.

 

[SeeNoWeevil]

Good riddance.

 

[OléGunner]

when GAME brought everyone else there ended up being 3 stores within about 30 seconds of each other near me. You could literally walk around the corner and they'd be another one.

Same thing happened in central Birmingham.

It was laughable how close two GAME stores in the mall/train station were to each other.

 

[redcrayon]

Still struggling to compute the logic behind a near £100m increase in current gen being MORE THAN OFFSET by a £30m fall in last gen.

It wasn't a near £100m increase in current gen this year, that's the value of that sector to them as a whole. It was a £19m increase in current gen this year, more than offset by a £30.8m decrease in last gen this year.

UK sales of products related to the Xbox One and PlayStation rose by £19m to £114.6m.

However, Game added this had been "more than offset by the unexpectedly steep decline in Xbox 360 and PlayStation 3 content sales" which more than halved, dropping by £30.8m to £23.4m.

 

[Dunkers92]

Maybe the prices of new AAA games are up because next gen game wholesale prices are more expensive (than last gen games) so they need to raise prices to keep making a profit? I don't know, just guessing.

This is pretty accurate

I know how retail markup works, they have big markups on software and merchandise - if they were more reasonable then people might be more inclined to pay a little extra...but they are ripping the backside by selling at full RRP

Merchandise yes, software? Really no. The margins on brand new games are pathetically low. It's why the majority of other places have reduced their games offering massively

Not having a visual presence for video games on the high street if this does worsen will be a big blow to the industry

 

[Tillbo]

Can't see Game lasting next year really, which is a shame as it will mean no dedicated games stores in many parts of the country.

However, I don't really see how they can survive now. They have big expensive stores on expensive high streets so cannot compete with online or supermarket prices. With more games becoming digital this will only get worse as fewer people will be buying physical anyway.

They need to offer things that online can't but not sure really what that could be?

Rentals or some sort of swapping system better than their current trade-in system?

Filling the store with demo pods for people to try out games socially?

A decent loyalty system that could offer special editions, collectors items and gifts to loyal customers to offset the fact people are paying more?

Dunno really though?

 

[JoeM86]

Same thing happened in central Birmingham.

It was laughable how close two GAME stores in the mall/train station were to each other.

Same here. There used to be 3 GAME within walking distance in Bournemouth town centre. Now there's none, closest is in a retail park a few miles away.

 

[Vince DiCola]

I used to work for Gamestation and then Game and the pressure the staff are under to upsell everything from console insurance, pre orders and dlc is crazy.
The company is mismanaged from the top down and I won't be sorry to see them go but I still have friends that work there so I'd be sorry for them, but they are awful.

 

[Garrett Hawke]

I heard from an employee that their Black Friday turnout was far, far lower than they expected as well (at least at the store I go to). I guess people are finally realising that they are just rip off prices?

 

[peanutbutterlatte]

Can't see Game lasting next year really, which is a shame as it will mean no dedicated games stores in many parts of the country.

However, I don't really see how they can survive now. They have big expensive stores on expensive high streets so cannot compete with online or supermarket prices. With more games becoming digital this will only get worse as fewer people will be buying physical anyway.

They need to offer things that online can't but not sure really what that could be?

Rentals or some sort of swapping system better than their current trade-in system?

Filling the store with demo pods for people to try out games socially?

A decent loyalty system that could offer special editions, collectors items and gifts to loyal customers to offset the fact people are paying more?

Dunno really though?

To be fair mate you've still got more ideas than the CEO apparently

 

[Garrett Hawke]

This is pretty accurate



Merchandise yes, software? Really no. The margins on brand new games are pathetically low. It's why the majority of other places have reduced their games offering massively

Not having a visual presence for video games on the high street if this does worsen will be a big blow to the industry

If the margins are so "pathetically low" why does GAME struggle to make money selling everything at £55 when online retailers sell them for anywhere between £10-£20 less?

Like, surely even just a £10 markup over the actual price would be enough to keep their employees paid?

 

[PumpkinPie]

Good news, they're like cockroaches. If you ever want to buy a console from Game they'll only sell you one in a bundle with thirteen games and a third-party charge station.

 

[Linkstrikesback]

The loss of jobs and a nationwide game dedicated chain would be horrid, but I'd be lying if I said I wouldn't be happy that they'd lose the stranglehold they have on limited editions too.

 

[Chris1]

Game should set up a rental service. I mean in the uk there is no real way to rent games any more. I dunno seems like common sense to me.

 

[EvB]

I know how retail markup works, they have big markups on software and merchandise - if they were more reasonable then people might be more inclined to pay a little extra...but they are ripping the backside by selling at full RRP

Big markups?
What do you think the cost price is for a £50 game?

Entertainment retail has staggeringly low margins, which is why it's dying.

 

[Coxy100]

Can't see Game lasting next year really, which is a shame as it will mean no dedicated games stores in many parts of the country.

However, I don't really see how they can survive now. They have big expensive stores on expensive high streets so cannot compete with online or supermarket prices. With more games becoming digital this will only get worse as fewer people will be buying physical anyway.

They need to offer things that online can't but not sure really what that could be?

Rentals or some sort of swapping system better than their current trade-in system?

Filling the store with demo pods for people to try out games socially?

A decent loyalty system that could offer special editions, collectors items and gifts to loyal customers to offset the fact people are paying more?

Dunno really though?

How about an online system that doesn't fuck up orders all the time? And if it does go wrong - don't outright lie / blame others?

 

[ANuclearError]

I heard from an employee that their Black Friday turnout was far, far lower than they expected as well (at least at the store I go to). I guess people are finally realising that they are just rip off prices?

Screw companies trying to force that crap here.

I pop into Game every now and then when I've got time to kill before a train, but there's not really a whole lot I can't get elsewhere. The one near Glasgow station doesn't even let you use the demo kiosks, can just use the controller while a bunch of trailers play.

 

[Stuart444]

If the margins are so "pathetically low" why does GAME struggle to make money selling everything at £55 when online retailers sell them for anywhere between £10-£20 less?

Like, surely even just a £10 markup over the actual price would be enough to keep their employees paid?

Online doesn't need to worry about as many things that cost as brick stores?

Online has lower taxes due to loopholes, usually only have to worry about a warehouse or two and doesn't have to pay employees for every store they have.

While brick stores like game has to worry about: Cost of rental space which can vary depending on area, employees for each store (for hundreds of stores), etc.

Different situations.

Though like I said, not defending GAME, they don't help themselves since not only do they price things high, their management (based on plenty of stores like the one earlier on about selling a scratched disc as new) don't care, employee morale is probably low due to pressure from management, etc.

It just makes shopping at GAME a miserable experience. If Shopping at GAME was an enjoyable experience, more people would probably be willing to pay the higher prices for a bit of 'personable' customer service.

As it stands, many would rather buy online where they don't need to deal with miserable looking employees (who are just doing their jobs) trying to up-sell everything at sky high prices.

 

[Soodanim]

Even the staff at GAME's head office said Gamer Claus was shit, that was on the day of the reveal. Who's this Brera person, does he work there?

The Mario Maker 7 charge problem wasn't GAME's fault, it was the people who handle their transactions. I feel bad when I know little things like that about what actually happens behind the scenes. However, the business doesn't handle things well at all. That's clear for all to see.

Edit: I'm glad people are explaining that the prices aren't just out of greed. They compete with people who are willing to make little or no profit on games because they sell other products, and there's not much they can do about that.

 

[Tillbo]

If the margins are so "pathetically low" why does GAME struggle to make money selling everything at £55 when online retailers sell them for anywhere between £10-£20 less?

Like, surely even just a £10 markup over the actual price would be enough to keep their employees paid?

Because Games overheads are ridiculously high. Online retailers can have a huge central warehouses in areas where rates are low (and possibly free if they are bringing employment to deprived areas).

Game has similar warehouses + hundreds of stores in expensive high streets employing thousands of people. Typically most retailers want a 50% mark-up on high value goods so £10 per game isn't going to work

 

[Dunkers92]

If the margins are so "pathetically low" why does GAME struggle to make money selling everything at £55 when online retailers sell them for anywhere between £10-£20 less?

Like, surely even just a £10 markup over the actual price would be enough to keep their employees paid?

They don't have to pay up keep for brick and mortar, plus a lot of the places that undercut GAME massively, like Simply Games for example, sell imported copies from places like the UAE, which I assume they get hold of for dirt cheap.

On a £50 game, the margin is about £8, but that's before costs are taken into account. Yes, the margins are pathetically low.

 

[Stuart444]

Screw companies trying to force that crap here.

I pop into Game every now and then when I've got time to kill before a train, but there's not really a whole lot I can't get elsewhere. The one near Glasgow station doesn't even let you use the demo kiosks, can just use the controller while a bunch of trailers play.

Is that the one near Central/G-force (aka used to be gamestation)?

If so yeah, iirc they used to have demos that could be played a long time ago but now it's basically a trailer machine Annoying but oh well.

 

[Garrett Hawke]

Online doesn't need to worry about as many things that cost as brick stores?

Online has lower taxes due to loopholes, usually only have to worry about a warehouse or two and doesn't have to pay employees for every store they have.

While brick stores like game has to worry about: Cost of rental space which can vary depending on area, employees for each store (for hundreds of stores), etc.

Different situations.

Though like I said, not defending GAME, they don't help themselves since not only do they price things high, their management (based on plenty of stores like the one earlier on about selling a scratched disc as new) don't care, employee morale is probably low due to pressure from management, etc.

It just makes shopping at GAME a miserable experience. If Shopping at GAME was an enjoyable experience, more people would probably be willing to pay the higher prices for a bit of 'personable' customer service.

As it stands, many would rather buy online where they don't need to deal with miserable looking employees (who are just doing their jobs) trying to up-sell everything at sky high prices.

I get that there are higher costs associated with retail presence but I feel like if they could bring those margins down and foster loyalty PROPERLY it might keep people buying from them. As it currently stands, nobody I know ever goes in there to buy anything except my one friend who buys everything there for some unknown reason (she won't buy any games online and she's willing to pay the extra £20 or whatever even though she's broke half the time).

My local GAME is a nightmare though. Queues take fucking forever because the people behind the till are being told to try and sell everyone disc care, console care, DLC, pre-orders, etc. Just a very poor shopping experience. But yeah I do feel that it's mismanagement from the top down and I have one friend who works there and I would be sad for her sake if it went under.

 

[Bananajama]

GAME for the first time ever charged online prices in store (at least where I am)
Made a couple of purchases since. Stink of desperation maybe?

I don't know but I've made more purchases there in the last month than the last 5 years

Online has lower taxes due to loopholes, usually only have to worry about a warehouse or two and doesn't have to pay employees for every store they have.

Just to comment on that - it's been closed in the UK that little loop hole.

 

[goonergaz]

This is pretty accurate



Merchandise yes, software? Really no. The margins on brand new games are pathetically low. It's why the majority of other places have reduced their games offering massively

Not having a visual presence for video games on the high street if this does worsen will be a big blow to the industry

Really? So online I can get games for ~£15 cheaper and those people are making profit. When I worked in retail games markup was good (around 30% IIRC) enough for my store (small independant) to be able to undercut the likes of Currys (down the road) and still make a nice profit thanks very much.

 

[Eddie_Khaled]

I refuse to trade with GAME.
I cant even remember when was the last time I bought something from there shop.
I do, however, use other retails such as CEX, tradenation and grainger games.

 

[Garrett Hawke]

They don't have to pay up keep for brick and mortar, plus a lot of the places that undercut GAME massively, like Simply Games for example, sell imported copies from places like the UAE, which I assume they get hold of for dirt cheap.

On a £50 game, the margin is about £8, but that's before costs are taken into account. Yes, the margins are pathetically low.

Do you have a source for the £8 figure?

 

[SuicidalSteve]

Needs more berra

 

[Stuart444]

Just to comment on that - it's been closed in the UK that little loop hole.

Has it? Last I checked (which was a while ago admittedly), Amazon still gets tons of flack from UK people on social media for it.

But good I guess.

 

[Daffy Duck]

I buy from GAME because of their stranglehold on day one pre-order bonuses, it annoys me greatly, but that's just how it is, they end up with all the best cut content.

 

[goonergaz]

Big markups?
What do you think the cost price is for a £50 game?

Entertainment retail has staggeringly low margins, which is why it's dying.

As I said before, maybe Game should not spend money on exclusives and bad adverts and rather use that money to be competative on the price front - either that or go total exclusive, give themselves a real differentiator for the customer to feel it's worth paying.

 

[Bucket-o-roadkill]

They sell f1 2015 for £54.99 to this day which got a good laugh out of me.

An utter embarrassment as a company and clueless at being even slightly competitive when it comes to pricing. It's truly baffling really.

When you have a company that just sell games and they are so out of touch they can't even do that right, it really must be a matter of when, not if they disappear.

 

[Tillbo]

Games prices cannot go lower and trying to match online will simply put them out of business. Their in-store prices are high but they have to be.

What they need to do is to offer something to offset these higher prices to loyal customers in a meaningful way. They also need to provide an in-store experience that will make people want to visit their stores - rows and rows of pre-owned games is not going to do this

 

[Baleoce]

I saw a dualshock 3 (yes, 3) "on sale" for £45 the other day in GAME Hereford.

 

[goonergaz]

On a £50 game, the margin is about £8, but that's before costs are taken into account. Yes, the margins are pathetically low.

Where do you get that from? In my day a £50 title was ~£28 - and that's a small-fry store ordering ~20 copies for big titles. Of course vat comes into it, but still it's ~30% profit at RRP

 

[Bucket-o-roadkill]

Games prices cannot go lower and trying to match online will simply put them out of business. Their in-store prices are high but they have to be.

What they need to do is to offer something to offset these higher prices to loyal customers in a meaningful way. They also need to provide an in-store experience that will make people want to visit their stores - rows and rows of pre-owned games is not going to do this

If they can't charge any lower than 55 quid for F1 2015 then I have to admit, they've done well to survive this long.