“With the significant growth of online retail and downloadable titles it seems probable that the GAME Group may further scale back their stores or even merge the two chains. Perhaps you’ll only be able to pick up games in supermarkets and HMV soon. Who knows?”
That was Kris, April 5th, last year.
It all seems oddly rhetorical now, of course, given what we know about the GAME Group. The situation seems to be that they’re struggling a bit – publishers are losing confidence, they’ve lost their handy sale-or-return policy with key suppliers and anecdotal (and largely unverified) evidence floating around the net this week suggests some employees were paid late recently.
Naturally, all this is difficult to quantise and without key facts from the company there’s a lot of speculation abound, but the story starts to tell a sorry tale whichever way you look at all this. There’s some resolution at the end of all this, of course, and nobody really expects the group to suddenly vanish from the high street, but the road might not be quite as smooth as everyone would like.
Founded in 1991, GAME started off fairly small, the oddly named Rhino Group expanding to 77 stores when they took over Virgin Games two years later. Another 48 months on and what was then Electronics Boutique Limited bought 25% of the company, rebranding the stores (which were then Future Zone) as Electronics Boutique, a name that still rings strong for some as representing knowledgeable staff and a wide range of products.
[drop2]It wasn’t until 1999, when Electronics Boutique bought out a range of stores called Game that the group was formed as it is now. Founded in 1990, Game had 86 stores of its own. Further expansion (BarrysWorld, ScoreGames and Centro Mail) happened in 2001, and EB quickly became a force to be reckoned with, before rebranding as GAME a year later.The GameStation buy-out happened in 2007, but not before GAME gobbled up GamePlay and GamesWizards, leaving GAME pretty much the only high street national at that stage that concentrated on new titles. Altogether the brand has around 1,300 stores at the moment, and continues to trade from its main website (alongside the rather more specialist looking GamePlay site).
In March last year, though, things started to slow. As the average consumer started to wise up to what the core gamers had been saying for years – that cheaper deals could be had online – GAME’s once ready market wasn’t quite as enthusiastic. And on top of this, many retailers new to the industry (which, for better or worse, includes the supermarkets) started offering trade-in deals, something the specialists like GAME once had all to themselves.
This, as you’d expect, made a massive difference to GAME. Asda, for example, can give arguably better trade-in prices than the specialist does depending on the game (obviously it’s worth shopping around) and I’d suspect they’re not alone. And if the average shopper picking up their weekly groceries can also nip into the electronics section of the supermarket and grab the same games that GAME are offering, and usually cheaper, then why would the same person make the trip to the high street to go to a dedicated store?
Of course, in days gone by, that same specialist would be able to impart knowledge, information, unbiased facts and perhaps even some friendly small-talk as you handed over your cash. Admittedly, you’re still going to get the most from staff from a dedicated games retailer, and I know a few employees that pour their hearts into their jobs, but is this still widely the case?
What’s particularly noticeable, though, is the way the stock has slowly changed within GAME branches. What was once racks and racks of new titles is now a much smaller area, with the lion’s share handed over to pre-owned games, some times considerably so. If GAME are doing this, then they’re only really stocking a small subsection of each platform’s games new, and in some cases just what constitutes the retailer’s own top twenty titles.
Downloadable titles, too, has no doubt had an effect. Steam has revolutionised the way PC games are bought and played, and who knows what’ll happen when the Vita appears, where every game you can buy on cartridge will also be available over the PSN, a service that GAME won’t see a penny of unless you buy your credit for the Network on a pre-paid card from one of their branches.
GAME, you may argue, has failed to evolve as the industry has.
[drop]News this week hasn’t been particularly fair on GAME, with some misreporting and conclusions unfairly jumped to, but what remains is a series of articles suggesting the group is struggling. They’re no doubt not alone, but clearly a large target, and are only just admitting to their problems. Indeed, only in the last few hours has the board commented officially.News first broke yesterday when it emerged that the group had lost certain insurances from publishers (with some speculating this included Konami and possibly EA) and meant that the normally safe sale-or-return scheme (where GAME could just send back any unsold games) had been removed. GAME, basically, had to foot the bill upfront. This, in turn, meant that there were rumours new releases wouldn’t be available this week, but that appears to have been smoothed over.
MCV, a bastion of balanced viewpoints (at least in this particular case) reports this evening that the owners have “concluded discussions with its lending syndicate and agreed revised terms for its facilities” and whilst GAME are now having to “‘operate within lower limits of its existing facilities than was previously available” it does mean they’ve been given a lifeline.
They’ll continue to trade, basically, although this is going to be off the back of an £18m loss before tax for the year to the end of January. “We’re pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan,” said CEO Ian Shepherd.
There’ll be an update to the group’s strategic plans, too, which may involve the selling off of GAME’s international businesses, which currently relates to approximately 50% of the branches.
Whilst it’s apparently fashionable to think that the industry would be better off without GAME, that’s largely not the case. The supermarkets might be cheaper now, but that’s because they’re competing for the market against GAME who hold as the last real specialist high street presence, and whilst the indies might temporarily thrive if they were left without the likes of GAME around the corner, who knows what might happen if they vanished?
I do wish GAME well, I might not shop in there as often as I once did, but that’s largely a change in my own circumstances rather than anything particularly directed at the retailer. I do like to go in and browse, though, and seriously can’t imagine not having that option. The group might not be in top form right now, but publishers and gamers alike need them – heck, the industry needs them – and hopefully they can come through this in a much stronger position.
This is a personal blog and the views may not reflect those of TheSixthAxis.
moshi
I had a look at the cost of a new PS3 controller the other day in GAME,I quickly walked out after seeing the price tag of £53.99.
freezebug2
Joke shop?
Youles
Before Xmas they were £44.99 – everyone puts them up over Xmas, I suspect since parents buy them with consoles, or on request from their kids. Not surprised they’ve kept them at that price though, the buggers!
moshi
Just been into gamestation and the price there is £51.99 so unsurprisingly i have just bought one online from Play at £34.99.
Forrest_01
I have no idea how they expect people to pay £50+ for a controller! Even £40+ is pushing it as far as i am concerned!
They really need to sort themselves out & quickly!
The Lone Steven
£52!? I thought they would have reduced back down to £30. :( It’s not like there is a shortage of DS3es as Amazon sells them for £20-£30. :) I would prefer to pick up a DS3 and a game for £50 then just a DS3.
yogdog
£35 at my local gamestation, anything above £40 is just extortionate!
Origami Killer
That’s not all. In GAME not so long ago and Uncharted 2 was £44.99. Need I say no more. And yes that was 2 you saw.
Tuffcub
If you go to the GAME flagship store on Oxford the new Xbox and PS3 are right at the very back of the store, in fact the PS3 games are practically hidden. Racks upon racks of preowned, shovelware Wii games and piles of £5.99 PC games.
Its a mess
Tuffcub
Oxford Street. Sorry, havent slept.
Omac_brother
The GAME in Stoke (Infact, we have 2 of them, 30 foot from one another), are the same. The new PS3 titles are hidden on the bottom shelves in a corner. Crazily, there is an entire stand at the front of the shop dedicated to games that dont have a box or manual, so just the disk, discounted by 1 or 2 pound.
Youles
Confirmed in Brighton too. I think there is a bigger stand for Sackboys, than there is for new PS3 games – and this was at Christmas, I was completely shocked.
tactical20
Couldn’t care less. Never liked Game. It’s embarrassing walking in, like going into a porn shop. What if hot girls see me?! And I generally hate sales assistants talking to me, and giving me advice. I will have already researched the topic and know exactly what I want, so just let me enter my pin, put my shit in a bag and let me get out of this strangely smelling shop.
freezebug2
I thought you’d be safe in a GAME shop regarding any advice from assistants, as I’d heard that most of them are clueless about games other than MW2 related enquiries and you get the “Computer says no” response!
I know what you mean though with shop assistants asking if you need help, like you were looking for the cake shop and popped in their store by mistake!!
Youles
I had to tell the Game sales “advisor” the correct price of their games (as I’d been in another of their stores down the road). That’s pretty poor however I’m not surprised. My wife was in retail management for years and due to people calling in sick (students!), managers now seem to be required to have 10 members of staff on small contracts such as just 6 hours a week (so they have a large pool of people to call upon, or who will no doubt want more shifts). This is instead of having say 4 core members of staff doing 40 hours a week, who would no doubt have a better knowledge and should know the store and it’s stock better, and would therefore be able to give us consumers better service. Retail staff turnover is pretty high and unless you’re a supervisor, assistant manager, or manager, you generally won’t be making a life long career as a sales assistant. And because people aren’t making a career of being a sales assistant, they just don’t care and are just clock watching until the end of their shift, sadly.
Forrest_01
To be fair, that’s more your issue than Game’s – I never feel uncomfortable walking into my local Game (apart from when i see the queues because they are always understaffed) & i have actually pulled in Game before, so i can confirm that hot girls seeing you really isn’t an issue.
I personally don’t have an issue if they try to advise about a game, as long as they get it right – Its just when they get it wrong that it gets under my skin, as like you, i will know a fair amount about the game before i even walk in.
& you want strange smells?? Try a CEX. That’s a goldmine for the absurd (& sometimes gut wrenching) fragrance.
yogdog
Yep, I’ve pulled in Gamestation before now, in fact I did on my birthday last year when I went to pick up Skyrim. Got a really hot redheads phone number.
Also,there’s 9 people who work there, and 5 of them are girls so not too embarrassing at all to go in there. All are pretty good looking as well, and I have 2 of them added on facebook and talk to now and again.
Forrest_01
& their names are??…
I kid – Think the wife might have something to say if i start adding random female members of staff of Gamestation!
XD
yogdog
Yeah, don’t think she would be too pleased :P
fattyuk
lost count the amount of times ive corrected the manager in my local game either to me or other customers lol. The last one i heard at the weekend was how the vita is sold out everywhere and he was going to get co extra supply for some bloke who wanted to pre order one – politely told the fella to have a look online as its cheaper and there not sold out anywhere he laughed and walked out
OneShotWook
Well both my local Game and Gamestations today haven’t had Final Fantasy or Soul Calibur.I will miss Gamestation if it goes.
I’ll trade in my soul at Asda,maybe get a copy of Mw3 or at least a Sandwich and some johnnies.
kjkg
Now that is worrying. To not have a couple of “big”ish titles available from release date just goes to show the detachment Game have from the gaming industry.
Forrest_01
That’s a bit weird as my local store were very keen to point out that they did have those titles today! they almost seemed desperate for me to know.
I just wanted to spend the credit i had with them (just in case*) & get the hell out as soon as possible!
*(this may be seen as a desperate measure as there is no clear sign that Game are going down the pan, but i would much rather spend it now on something i might not want as much than go there for something i do want in a month or two & find they have in fact closed down!)
Forrest_01
Additionally, i have just received an e-mail from game with a big banner for FF saying itas in stock & offering it as part of that ‘play for a fiver’ deal.
Perhaps a delivery miscalculation to your area?
OneShotWook
It could be Forrest yeah as it was earlyish this morning but they usually get big releases prior to the day of.
I also just changed my preorder for Kingdom of Amalur from Game as a ‘just in case’ measure.
Forrest_01
Oh, i agree that they should definitely have it on day of release, as it is a bit of a travesty if not (& someone like HMV is probably laughing all the way to the bank because of it, due to increase in sales), but it could be down to a number of things i suppose.
Still, a little concerning considering the recent news relating to their finaincial status! :S
Either way, i am glad i managed to spend my credit now.
skibadee
just went to buy neverdead comes out today they do not have it crazy.
Forrest_01
Yeah, i had heard the same to be fair – It shocks me as it was looking good, but i was always a little concerned about the ‘not dying’ thing being a bit of a game breaker where challenge is concerned.
Dunno if that is what people are finding bad about the experience (not read a review yet), but not good either way.
bluewolf
I live in Bavaria, and whilst there are no ‘Game’ stores there is a similar ‘Gamestop’, and for all intents and purposes it seems to be having the exact same problems; few new titles and over-loaded with trade-ins. Trouble is, both are way too expensive (mind you, most traditional stores are expensive for game buyers), and when compared to online, there is little to no point that they even exist.
Of course, it doesn’t help (the stores) that the PS3 allows you to play any game from anywhere in the World – I’ve got British, German and US titles in my collection.
Sitorimon
Once again, I went to Gamestation to see the price of FFXIII-2 – £42.99 new. Then when I bought a preowned PS1 game in their 49p bin (wahoo)the same guy says the exact same pre-order / trade in shovel. Then when I told him FF13-2 was £37.99 in HMV and £32.99 in Asda, he said “well we haven’t even had a delivery on it yet anyway mate, come back this afternoon. Need an PSN points? The new COD maps are wicked.” The completely encapsulates almost every experience, which is awful, offputting and overpriced. My HMV has the new games I want. Game/station never have anything outside say the top 10 of each and a generic old shooter. There’s walls full of coming soon that could have a better selection of titles. It’s just turned into CEX.