Game goes into administration

iSparky

Likes Dags. but not as much as his Dad
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http://www.engadget.com/2012/03/21/...on/?utm_source=twitterfeed&utm_medium=twitter

Retailer Game, owner of the Game and Gamestation chains has entered administration. The chain has 1,270 outlets in Europe and Australia and rumors have circulated for months concerning unrest at the highest levels of the business. It was unable to agree deals with publishers Capcom and Electronic Arts for the latest titles, meaning it had to turn away customers looking to buy Mass Effect 3 during its blockbuster opening weekend. After the board informed shareholders that "it's uncertain any of the solutions [...] being explored by the board will be successful," the company's share price fell by 71 percent. A week later, the company withdrew its share listing from the London Stock Exchange as its share value collapsed to from 62p a year ago to 2.39p. A statement released today said that insufficient progress had been made in finding a rescue solution, but the company will continue to trade while talks continue:

"Further to this morning's announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator. In the short term the Board's intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium."
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Sad news, Game was where I have got my fix since I was a young lad. Still though failing to secure deals with the likes of Capcom and EA they have essentially shot themselves in the foot.
 
I don't think I've used Game since 2005, online retailers offer much better deals and fairer prices.

What impact does this have on gamestation? I have store credit with them but I don't really want to buy anything yet.
 
Did Electronics Boutique change its name to Game, or did Game buy it? I think they just changed their name but I'm not certain.

Anyway it's not exactly surprising I guess. For me personally the last 10+ video games I have bought where second hand off of Amazon. First hand at release that would have cost me half a grand, instead if cost me 100 quid.
 
ha_rooney said:
I don't think I've used Game since 2005, online retailers offer much better deals and fairer prices.

What impact does this have on gamestation? I have store credit with them but I don't really want to buy anything yet.
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Your store credit probably just became worthless.
 
It was unable to agree deals with publishers Capcom and Electronic Arts for the latest titles, meaning it had to turn away customers looking to buy Mass Effect 3 during its blockbuster opening weekend. After the board informed shareholders that "it's uncertain any of the solutions [...] being explored by the board will be successful," the company's share price fell by 71 percent. A week later, the company withdrew its share listing from the London Stock Exchange as its share value collapsed to from 62p a year ago to 2.39p.
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Obviously they couldn't afford what they would normally pay to Capcom and EA but that article makes it sound like not having those two deals just killed the company.

Last week, the retailer confirmed that a number of suppliers were refusing to do business with the company.

Game acquired GameStation in 2007, adding hundreds of new stores to its portfolio. Piers Harding-Rolls, head of games at IHS Screen Digest, said that with hindsight, this move could now be seen as over-expansion.

"Whilst it reaped the reward of this in 2008, when lots of content was sold thanks to new consoles and handheld devices, the packaged game market has since declined," he said.

But he added that there was still a place for a large specialist games retailer on the High Street, with 70% of spend on games content in the UK still in the form of physical media.
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The Neviller said:
I don't see why, since they are still trading.
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If there is uncertainty of their future, the Administrators aren't going to trade with store credit. Their job is to pay as many bills off as possible, and keep the company going if possible (secondary). There is no point trading with imaginary money (store credit), as that won't pay the bills.

We shall see.
 
Badunk said:
Game owns gamestation
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Yes, but it is Game (the parent company) who are in administration not Gamestation, surely that means Gamestation can carry on trading like everything is normal??

rcoobc said:
Your store credit probably just became worthless.
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That is what I fear, £60 as well :(
 
Game developers/publishers aren't overkeen on the second hand games market and Game/Gamestation always seem to have a healthy supply of pre-owned games on their shelves. I wouldn't be surprised if EA/Capcom weren't overly keen to negotiate in order to help out a company that actively promotes trade-ins.
 
Used up my GAME vouchers couple of week back, I'd spend them this weekend at the latest anyone who has any because the shops won't be there Monday both game and gamestation
 
Considering I have about £150 + Worth of Gamestation Credit... I think I might be buying a PS3 this weekend.

EDIT - They will still accept credit right.... right?!?
 
I've bought my last 20 odd games from Shopto anyway. Makes no difference to me.
 
Saw this coming, told a mate of mine to spend his store credit about a month ago. They've been overpriced for far too long and failed to adapt their model to compete in today's market.
 
Easiest way to check credit is to go online and try and spend it, I would imagine its still valid but it might not be very soon. I spent the £5 I had last week on a PSN Store voucher, only having £5 on my card after about 10 years says alot about how much I spent in there.
 
R_Kelly said:
Saw this coming, told a mate of mine to spend his store credit about a month ago. They've been overpriced for far too long and failed to adapt their model to compete in today's market.
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One of the bigger issues in Aus is the fact they carry too much stock because it's overpriced to buggery. Every time i've been into my local one, there has been 2 maybe 3 customers, and 3 clerks sitting at the counter doing feck all.

Now I just buy online at nearly half the price. Takes around a week for delivery, but I don't mind.
 
Always busy in my local GAME, I haven't really bough many game out of there in a long time I tend to download purchase these days.
 
Their staff are clueless idiots, so I dont feel too sorry for them. Everytime I've bought something, I've had to say "no thanks" to umpteen different requests. No I dont want to reserve anything. No I dont want to trade anything. No I dont care if you offer an extra 25% if i trade in 3 games because, as I've just told you, I dont want to trade any games in. Yes that is all, thanks. Now give me my fecking game and let me escape.
 
marchi-91 said:
I wouldn't feck about waiting for the weekend, because the Admins will be all over that shit, placing embargos on it very very soon if not already.
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Aye, I'm bombing over straight after work... going to leave early in fact.

I can't see how they can refuse store credit though... The way I view it, I am a creditor, and the whole point of adiministration is to pay off your creditors... but obviously I can't imagine it is that simple.
 
I never buy anything on release in Game. If you wait 3-4 weeks its usually in the deal of the week for £25.00.

I'll miss it if it shuts down.
 
In the uk we will be left with only HMV and blockbuster as proper video game retail stores if Game/gamestation goes under.

Sad times.
 
Badunk said:
Their staff are clueless idiots, so I dont feel too sorry for them. Everytime I've bought something, I've had to say "no thanks" to umpteen different requests. No I dont want to reserve anything. No I dont want to trade anything. No I dont care if you offer an extra 25% if i trade in 3 games because, as I've just told you, I dont want to trade any games in. Yes that is all, thanks. Now give me my fecking game and let me escape.
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Like following the orders of there boss' is the employees faults.. sure :rolleyes:
 
Garethw said:
In the uk we will be left with only HMV and blockbuster as proper video game retail stores if Game/gamestation goes under.

Sad times.
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And blockbusters hardly does all that well really... flirted with administration a couple of times if I'm not mistaken?

My problem with game/gamestation closing is it reduces the number of places to trade in games... I never buy from them, but have sold a shit load to them for credit.

Now it'll have to be hmv or cex...
 
Game were always going to go out of business sooner or later, they simply cannot compete with the prices of online retailers, the market for them gets smaller every single year as people make the move to the internet. A shame, but a harsh reality.
 
LoveFilm/Netflix will move into replace Game really.
 
Annihilate Now! said:
And blockbusters hardly does all that well really... flirted with administration a couple of times if I'm not mistaken?

My problem with game/gamestation closing is it reduces the number of places to trade in games... I never buy from them, but have sold a shit load to them for credit.

Now it'll have to be hmv or cex...
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Should just do it online....AVforums is good as there are no fees and as long as you head and only sell to well rated guys won't get fleeced(not that many cons happen there) plus you can trade and sell, Amazon, Play and well eBay if you want the hassle.

You could really have some kind of trading thread on here tbh, selling I can understand not doing, but I've seen a few forums do DVD/Blu/Game trading.
 
I must have first bought a game in GAME over 20 years ago. Just shows how much business is moving away from the high street into supermarkets and online. The problem as I see it however is that supermarkets don't have a very good selection and tend to concentrate on the big sellers, meaning that niche title will not be easily available other than through online retailers.
 
Adam-Utd said:
Like following the orders of there boss' is the employees faults.. sure :rolleyes:
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*insert any shit game*

"Excuse me...do you know what this one's like?"

"It's really really good! I've played it. It's really really good!"

"Er, okay. Thanks."
 
Still accepting credit... got myself a PS3 and uncharted 3... time to find out what all the fuss is about...
 
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