GAME is to close 100 stores across the UK after a 28 percent drop in profits since last year.
UK games retailer GAME has announced that it will close 100 stores across the UK after being hit hard by the growing popularity of online stores and digital distribution in the last year.
GAME CEO Lisa Morgan officially resigned earlier this week after a 28 percent drop in profits since last year. Morgan had been leading GAME for three years and has been temporarily replaced by former Ladbrokes CEO Chris Bell.
GAME has now announced that it will reduce the number of stores from 677 to 550 over by the end of 2013.
The company claims the drop in profits and closures are due to increased competition from supermarkets, online retailers and digital distribution. The closures are in addition to those announced last year, which affected 12 GAME stores, six GameStation shops and 25 Debenhams concessions, according to
GI.biz.
"In December 2009 we closed 19 GAME concessions in Borders stores, and since the year end we have also taken the decision to terminate our concession partnership with Debenhams and announced plans to close 18 other stores," said GAME chairman Peter Lewis.
"
Our strong customer base of Reward Card holders enables us to contact customers and transfer the majority of the revenues from these stores to the next nearest GAME or Gamestation. There will be no material costs from these closures."
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77 Comments
Discuss in the forums ReplyPrices are always insane for any new releases, and instantly undercut by either the ease of Digital Distribution (at pretty much the same price point) or Supermarkets running games as loss leaders.
company deserve what it gets though
It's like they're trying to fail.
Not two weeks ago I had one bloke in one of their edinburgh stores telling me that the second hand PS3 for £269 was a great deal, despite the fact that they couldn't do bundle deals with it and you could buy a new one with 2 games for £289, or the new console on its own for £275.
If you're going to sell games have a damned "play" section like HMV with the Xbox and PS3 set up. Do demos, hold events to attract people - give them a reason to go to a shop rather than buy online. If they just rely on sometimes dirty looking overpriced stock on the shelves it's no wonder they fail. I swear half the people I see in there are mothers buying for their kids anyway and they wont have brand loyalty - cheapest wins!
I'll take my mint condition, 30% cheaper shrink wrapped game from play.com, thanks.
Amazon/play/gameplay price for a game = £30
Sainsbury's/Tesco Price for a game = £29.99
Gee, I wonder where their business model went wrong
GAME and all pre-owned suppliers are vultures. Good riddance.
Bullshit. If there was no preowned market, the people who sell their games back to shops would have less money and would be less likely to buy a new game when it comes out, knowing they will have no way to recoup some of the £50 they're having to fork out.
Their management failed to see where the market was going and failed to develop its business model. I feel sorry for the guys in the store sure, but without insulting them, they could apply their sales skills in any other shop and they should get a job relativly soon. It doesnt require a degree to sell stuff over a counter.
sorry but some of the gaems are 4 times the price in game to other shops, i only go there if it is a last resort and the gaem i want is sold out everywhere (including online ill trying shipping from america first as its cheaper)
That was certainly my angle during my teen years, when my game buying was at its height. If there was no opportunity to trade-in games I would've bought very few brand new titles (where everyone presumably makes the most cash) because I couldn't be sure I'd like it. A £30 game that you hate and can do nothing with is a total waste.
I had to laugh at the quote from the Chairman about how they closed Borders in-store concessions - it's not as though they had much choice, really. Not with Borders going bust, an' all ;)
Steam did this.Steam contributed heavily to this.
said in a Nelson voice...
Play and Amazon also contributed to this.
But most of all Game contributed to this - the number of times I've had a Game Voucher as a gift and held onto it for months because I couldn't bring myself to pay the inflated prices in store...! Especially as online with free delivery I could get it cheaper from Games own site if they only accepted their own vouchers! And their PC stock was laughable.
Still there was always a long line of console jockeys waiting to spend £50 a time in my local one so it's not like they weren't selling anything.
Yeah, seems like easy maths doesn't it.
Now count how many times trade-ins get re-sold and re-sold and re-sold with none of that money going to pubs and devs, and now re-do your maths.
There are children crying in the Steam forums as well, suggesting ideas to introduce digital trade-ins on Steam because they wan't brand new games at cheap prices. So to quote my response to the most recent one in there:
"If people think, and I mean really think about a digital trade-in/pre-owned system, it makes absolutely no sense apart from to those who want cheap games.
Here is a much better option:
Release month : game costs £29.99
2 months later : game costs £24.99
4 months later : game costs £19.99
6 months later : game costs £14.99
12 months later : game costs £9.99
24 months later : game costs £4.99
This way you hit everyones price-point and everyone is happy. Except all those who want brand new games for cheap."
Of course, it was a quick response and the months and prices need researching properly. Trade-ins have always and will always be a way for retail to squeeze as much money out of 1 item, re-sold as many times as possible.
Those 2 stores in Bas are a joke. 1 is pretty much 360 only, with half the store covered in green boxes and the other has more DS and Wii space than anything else. The PC sections have practically disappeared over the years aswell.
Gamestation isn't any better really.
I wont miss GAME if they vanished completely.
And piracy doesn't? There's a proportionate difference imo.
/can of worms
/runs away
i am glad
i sent a game in for a refund at their online store [unopened]
they took FOUR WEEKS to book it in. didnt reply to a single one of my 14 emails
and then guess what they did. sent the game back to me even though it was down for a refund.
idiots, deserve to suffer financial loss. the worst customer service i have ever experienced
and from a complany i used to have a lot of faith in
although i do still prefer the buy it and have it in your hands approach.
I never suggested piracy didn't!
... of which I am equally anti. Of course the problem occurs that once piracy and pre-owned have been killed, then Activision still won't reduce their prices and people will have to resort to burglaries to get their hands on Call Of Duty: Modern Warfare 2 in any sort of reasonable timeframe. ;)
Everything they sell in store is nearly always RRP, anyone can undercut that....
when you buy a secondhand car, should the manufacturer get a cut?
when you buy a secondhand laptop, should the manufacturer get a cut?
when you buy a secondhand <anything>, should the manufacturer get a cut?
Why is it for okay for everything else except games?
They should stop whining and demanding special treatment IMHO
Seems any town of reasonable size has at least 2 game stores from the time when they brought out competitors
I know I just like opening that can muahahahaha
I usually go to HMV.
These days I buy a lot of games from Steam due to convenience and cost, but I do miss the joy of going to a decent games shop and bringing home a game in a case with DVDs.
I have never bought a new release from game as the price is way over the top but always use to able to find a bargin somewhere.
I can understand there overheads are way more exspensive than the likes of play/amazon, but if you want to survive in the current climate you beter off competing and selling something for less rather than nothing at.
Steam is awesome and hope they can keep providing decent prices in the sales they do.
What do you all think?
I dont think steam would have affected game too much. Games PC choices are an absolute joke. They are 95% console stores.
Ha I think you severely overestimate the amount GAME gets from selling PC games its all about the 360 and Wii and games being much cheaper on Amazon Play etc PC DD is merely a small drop for them.
I'd prefer just being able to gift games away rather than sell them even if its just to get alot of the rubbish off my account. I doubt Valve will ever bother with this though they seem to be doing just fine on the current model.
You sir, are on crack.
Mind you, I'm not suprised they're having to shut stores - where I live there are two stores and a concession!
Still, they sell bugger all PC games anyway so bollocks to them.
As for Steam I'm not sure why so many people use it in the UK but at the same time talk about rip off games since for all new releases Steam is always one of the more expensive places to purchase a game.
Sorry, supermarkets don't sell at a loss.... thanks
'Sometimes' I had managed to get some excellent pre-order deals from their online store.
http://en.wikipedia.org/wiki/Loss_leaders
I really think you need to retake that business GCSE you took.
Back on topic, GAME have dug their own grave. They thought that they could easily cash in on the rise in popularity of games and they would just sell themselves. Online etailing has crushed them and digital distribution means their PC game sales must have tanked. Plenty of times I've gone into GAME looking to be tempted by they sell stuff like Napoleon: Total War for £35 and Amazon was selling it for £17.99....
You don't always get good preorder deals with them.
Hurr hurr hurr
i know "digital" distribution is now the future,i rather go to the shop and buy the DVD instead and chat with staff and fellow customers about the latest releases and hardware and stuff. You do not get that anymore,its give us your money and go....
You're quite right, *MAYBE* they don't. Sainsbury's, for example, sold MW2 for £26 on release day (console), that must be VERY close to margin to not really make a difference. So sure you're not making a loss, but you're not really making a profit either.
That brings me to your point.
I think you are more interested in market share than anything else. Typical generalist retailer. Find a market and dominate it.
Hey when Tesco posts a profit of £3,000,000,000.00 for ONE year you get the picture that making a huge margin is NOT what the supermarkets are about. On average £1 of every £7 we spend goes to Tesco!
Most of you seem to want your games for as cheap as you can get them, fine, they've just become a tin of beans.
How many brands of beans can you get at your local supermarket?
Well my other half bought me Just Cause 2 (as a gift) from my local GAME store and she paid £34.99 for it (£10 more than it is on their website online!) but I got some satisfaction out of it knowing that yet another store might not get shut down!
As for HMV, some of their PC prices AND console prices are VERY high, in many cases just as high as GAME stores! So to say "I usually go to HMV" means nothing........
So when the British Medical Association asked the big supermarkets to stop loss leading on Alcohol promotions, and the supermarkets said no, that wasn't loss leading? Why would the supermarkets say "no" rather than "we don't loss lead"?
So when all the supermarkets were selling the latest Fifa at £19.99, they weren't loss leading?
You really must have your head screwed on wrong if you think the big supermarkets don't loss lead, because everyone knows they do.
EDIT: http://news.bbc.co.uk/1/hi/uk_politics/7131198.stm - hmm, funny because the government thinks they loss lead, and again Tesco don't deny it. But supermarkets don't sell anything below cost according to you, right?
I just don't trust the comment from the supermarkets "We don't loss lead" on release day.
Amazon (Online)
MW2 - PS3 £39.00
MW2 - XBOX £27.98
Asda (Online)
MW2 - PS3 £39.00
MW2 - XBOX £42.71
MW2 - XBOX £54.99 (WTF?) - Two listings, can I buy the one at RRP please.
GAME (Online)
MW2 - PS3 £37.99 (out of stock)
MW2 - XBOX £27.98
MW2 - XBOX £27.98 (with Gamerpics)
HVM (Online)
Mw2 - PS3 £39.98
MW2 - XBOX £44.99
The Hut
MW2 - PS3 £34.93
MW2 - XBOX £34.93
Morrisons
Gave up trying to get prices, there website isn't that user friendly.
Play (Online)
MW2 - PS3 £39.99
MW2 - XBOX £39.99
Sainsbury's (Online)
MW2 - PS3 £39.99
MW2 - XBOX360 £39.99
Tesco (Online)
MW2 - PS3 £42.80
MW2 - XBOX 360 Discontinued (WTF?)
Zazzi (Online)
MW2 - PS3 £39.95
MW2 - PS3 £54.99 (WTF?) - Two listings AGAIN!!
MW2 - XBOX £37.95
MW2 - XBOX £54.99 (WTF?) - Two listings AGAIN!!
It would be great if it went like that leveller, everyone (devs, pubs, gamers & cag's) win :).
I never liked the fact game opens sealed games, put the disc in the manual & bung them into draws & charge as much as legally possible for new games, good chance you will buy a new game from them & it could be scratched, you keep it in mint condition other than the scratch they gave it which devalues it for me & believe they should be classed as 2nd hand games, if I'm buying a new game I want it sealed (not tampered with) & competitively priced else there is no way I would buy from them.
Games online store is fine though, all games have been sealed as they should be, I have had many pre-orders a couple of days before release, never later than. Play on the other hand is garbage with pre-orders because they are not based on mainland uk so deliverys take longer & often miss release dates.
And anyway, all high street game stores seem to have an abysmal pc section these days that can make you feel like an oddball nerd lol, it's all about the consoles.
It would be great to buy straight from the publishers at much lower prices, but looking at ea's dd site they are overcharging, should be much cheaper because there are no other overheads, so it's steam or similar & online retailers FTW :D.
Pc games are just not there in game and that's it's problem
I don't buy many console games. Prefer to rent from
boomerang, complete send back repeat. Last game I brought was new final fantasy limited edition
What has how supermarkets sell alcohol got to do with whether or not they loss lead on games? I think it was fairly obvious that fev was talking about the situation only with regards to how games are sold, not what other departments get upto or whether they loss lead the products they are responsible for.
When Martin Long took over as CEO in Feb 04, the whole ethos of the company changed to being about maximum margins. They removed the lowest price guarantee from the price stickers, and the posters around the store. The policy still exists but there's no advertising for it. They also removed the 10 returns policy because they believed it was cutting into profits, what they failed to realise is that this was the only reason a lot of people shopped at Game, fair enough some people abused the system, but the majority didn't.
Wholesale price was normally £20-£24 for a new release console title, retailing at £39.99, if you take the VAT of that leaves £9-£13 in Gross profit. Now Game are a lot bigger now so probably get a better deal, as would the super markets I imagine. This means there's a broad scope of pricing before its making a loss.
Also I'd like to point out that most of the own brand stuff costs Game less than £1 to make, have shipped from China to the store.
Can I just ask a question of the games buyer for Tesco.
You are currently more expensive than GAME on some items online at the moment.
If you can get *SUCH* good deals all the time because of your enormous buying power and great relationships with the publishers.
Why don't you sell games at £25 all the time?
If your margin is sufficient at release day to turn a good profit you could do it ALL the time surely?
i'd be a bit disappointed if the gamestation ever closed but i don't think i could care less if both of the game's disappeared. i've had nothing but bad experiences in both of them. not that it matters, i can't remember the last time i didn't buy a game from tesco or off the internet.
Too true, Game has been reducing its PC Games section heavily in the stores over the last few years, online they still have quite a lot of PC Games though.
Maybe, but they often sell stuff cheaper on their own website than in stores and a warehouse somewhere in the wilderness is just going to be much cheaper than a retail store in a city center (often they even have multiple in walking distance of each other), profit margins are bound to be higher if they sell more stuff online compared to retail.
Good points.
(You could also add second hand books and second hand clothes.)
However, I think games publishers make a big issue out of the second hand and third hand game market because it's so huge.
When a new Honda Civic Type R is first unleashed by the manufacturer onto the road, how many years would you be waiting to see a significant second hand market for these cars?
What about a second hand laptop? It's specs are probably old by the time it is sold on by the owner.
Compare all of those examples to the example of a dedicated enthusiastic gamer who buys a new console game on release day, clocks it within 2 days, gets bored and sells it on to the second hand market. 'Sometimes' you may have the same game sold around 5 times within a few months.
Whether the publishers are right or wrong to make an issue over the 'second hand' games market, ANY publisher will be tempted to look for ways to tap into that enormous market.
MW2 - PS3 £54.99 (WTF?) - Two listings AGAIN!!
MW2 - XBOX £37.95
MW2 - XBOX £54.99 (WTF?) - Two listings AGAIN!![/QUOTE]
There are two listings each as there are the normal and limited editions.
Anyway, Game bought Gamestation and then decided to do all the half decent deals through Gamestation and hike up all the prices in Game. I'm a console as well as a pc gamer and Game's second hand prices are normally higher than the brand new prices as one of the staff near me in Mansfield said "most people walk straight past the new games and go to the used section thinking they're gonna get a bargain but we have to put the prices up to cope with demand". I have a Game, GameStation, Blockbuster, WH Smiths, Tesco, HMV and three indepentant game stores all within Mansfield town centre, and Game is always £5 -£25 more expensive than the rest. In Gamestation, Bioshock was on their 3 for £30 deal but was being sold at £25 on it's own at Game. I bet they'll be bust inside three years unless they invest in online distribution and Downloads services soon.
GAME does not cater for PC games. Less than 5% of the space is for PC games and out of that 99% are old, unpopular or overpriced.
GAME store seems unwelcoming with the bombardment of too many advertisements of "trade-in" and other crap that I care not about.