Game buys Gamestation for £74 million

Author: Joe Martin
Published: 2nd May 2007
Comments (22) Stumble
Game buys Gamestation for £74 million

Game has now bought Gamestation outright, but will continue to use the seperate Gamestation branding.

It was announced today that Game, has outright bought its nearest competitor, Gamestation, for a total of £74 million.

Game, which is the largest video games retail chain in Europe and which has over 500 stores, will keep the Gamestation brand separate from its own brand, but will now operate Gamestation's 217 stores, including the Birmingham branch which is said to be the largest video games store in Europe.

Game Chairman, Peter Lewis, said that; "The Gamestation business is one we have long admired and is complementary to our existing business in terms of both store portfolio and target customers."

"By investing in both brands we will further enhance the group's retail strategy while continuing to deliver and broaden our consumer reach. I am confident that this transaction will add considerable value to Game and its shareholders over the coming years,"

Last year Game announced profits of £2.1 million and declared it would be opening 80 new stores this year.

It's going to be interesting how the market reacts to this news however, as Gamestation has in the past been linked to more 'hardcore' gamers rather than the larger, more casual market that is associated with Game stores. Will the rebellious, hardcore market yell 'Spartacus' and rebel? Only time will tell.

Is this knowledge going to affect where you buy your games from, or do you only care for the best deal, regardless of brand loyalties? Let us know in the forums.
Quote DougEdey 2nd May 2007, 15:55
Remember, all Gamestations in Blockbuster stores will loose their Gamestation branding.
Quote Atomic 2nd May 2007, 16:03
Are there anymore gaming shops left for game to buy out?!!
Quote Cobalt 2nd May 2007, 16:20
Bugger
Quote Krikkit 2nd May 2007, 16:27
Quote:
Originally Posted by Cobalt
Bugger
Quote crayfish 2nd May 2007, 16:33
That's all we need.

Aren't there rules against this kind of thing? What about the monopolies and mergers commission? Didn't they let Morrisons buy into Safeway or something to increase competition?

I guess no-one else wanted to buy Gamestation then.
Quote CardJoe 2nd May 2007, 16:36
I'd buy it.
Quote Krikkit 2nd May 2007, 16:39
I would've bought Gamestation, and I would've thought it'd be worth a lot more than £71m.

I'm surprised it hasn't gone to the Trading Standards chaps actually - usually a business can't buy their biggest rival to mop up the market completely without someone saying something.
Quote Burnout21 2nd May 2007, 16:47
ah great, i liked game station because of there prices, so cheap. Game is a rip off! And game staff hate everyone, every time i have gone in gamestation the staff bend over backwards to help everyone in there. thats happened in all 6 game stations i have been in.
Quote Atomic 2nd May 2007, 16:49
Guess it might be to do with the fact that there are still large national competitors like Virgin and HMV etc...
Quote Omnituens 2nd May 2007, 17:18
Quote:
Originally Posted by Burnout21
ah great, i liked game station because of there prices, so cheap. Game is a rip off! And game staff hate everyone, every time i have gone in gamestation the staff bend over backwards to help everyone in there. thats happened in all 6 game stations i have been in.
A change in onwership doesnt mean that the staff are going to change does it?

What has everyone got against Game anyway?
Quote Lazlow 2nd May 2007, 17:18
Did you take the picture of the Gamestation in Ascot/Bracknell?

It was Electronics Boutique that bought out GAME in the first place wasn't it? Or EB Games as it's now known. I'm confused with all retailers as they all seem to have hands in each others' pockets.
Quote MrWillyWonka 2nd May 2007, 17:21
Quote:
Originally Posted by Lazlow
Did you take the picture of the Gamestation in Ascot/Bracknell?

It was Electronics Boutique that bought out GAME in the first place wasn't it? Or EB Games as it's now known. I'm confused with all retailers as they all seem to have hands in each others' pockets.

Yes,

EB takes over GAME > GAME takes over Gamestation.

It was GAME that was spiralling into debt it EB saved it by buying it out. Seems its doing the same with Gamestation.
Quote mclean007 2nd May 2007, 17:29
500 stores and it announces profits of only £2.1m? That's like £4,200 per store, which I'd say is pretty poor!!
Quote:
Originally Posted by crayfish
Aren't there rules against this kind of thing? What about the monopolies and mergers commission? Didn't they let Morrisons buy into Safeway or something to increase competition?
Yeah, there are, but they're not going to touch a company that only makes £2m a year.
Quote mikeuk2004 2nd May 2007, 17:46
Darn, Gamestation was the only one that gave good prices for a retail shop. I mean if I didnt buy on Play.com then it was gamestation.

My 360 came from there and my DS Lite. Game is a rip off with no good deals. Also I like Gamestation for it selling all kinds of cool stuff other than games and retro consoles etc. This will stop when game has it.

So when will all the Game stations turn into Game, because there will be 3 Game stores now in every town. My town I lived in when EB change to Game, tere was 1 store seperating EB and Game, and after it changed to game they didnt close the store, they turn EB into Game and they are right next to each other. Its like sticking 2 mcdonalds next to each other. Its stupid and wont generate more income, just more costs.

Only Gameplay and Chips left aint there?? Dont know of any other dedicated game store chains, only little independant stores left.
Quote Omnituens 2nd May 2007, 17:57
GameStop
Quote HugoB 2nd May 2007, 20:26
LameStation

Sorry obvious joke...

I am seriously annoyed, and puzzled how Game can afford to do this....
Quote Neogumbercules 2nd May 2007, 23:49
Gamestop owns EB Games as far as I know. So now Gamestop is the top of the pyramid for EB, Game and Gamestation.
Quote devdevil85 3rd May 2007, 00:42
Who is this guy that people could putting his face on random things? Did I miss something?
Quote OdDBaLL_MoD 3rd May 2007, 01:16
Quote:
Originally Posted by devdevil85
Who is this guy that people could putting his face on random things? Did I miss something?
LMAO, Thats Relix. And yes, you did.

My friend who works at a local Gamestation, is not going to be pleased, as she seems to hate Game with a passion...

Personally, i've always prefered Game over Gamestation...
Quote Aankhen 3rd May 2007, 04:11
Quote:
Originally Posted by mclean007
500 stores and it announces profits of only £2.1m? That's like £4,200 per store, which I'd say is pretty poor!!
Wow, well spotted. That's a pathetic return on investment. :o
Quote CardJoe 3rd May 2007, 08:57
No, it's not the gamestation from Bracknell. Its the Gamestation from Lancaster, where I went to University. Coincidentally it was also the first right sized picture that google images bought up.
Quote will. 3rd May 2007, 14:31
We have a shop called warp9 where I live... don't think its a chain... Its definitely where all the truly hardcore gamers go. Gamestation employees look like well dressed upstanding citizens compared to the bunch of metal heads who work in there :p
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