Upper-management at UK retailer GAME will be enjoying Christmas about as much as Louis Van Gaal, as the company's share prices have plummeted by a disastrous 34 per cent today. The decline comes after the chain announced that its UK revenue was down 11.4 per cent compared to the same 21 week period leading up to 19th December in 2014 – a not insignificant amount.
With the PlayStation 4 smashing sales records and the Xbox One performing positively in Britain, it's quite a surprise, but GAME is blaming lower than expected sales of the PlayStation 3 and Xbox 360, as well as slow adoption of new-gen software. "The switch over from the older gaming formats to PS4 and Xbox One software has impacted profitability across the UK market," said gaffer Martyn Gibbs.
GAME also cited a drop in high street footfall throughout December as another reason for the decline. This, however, comes off the back of what was, apparently, the biggest ever Black Friday for the gaming industry in the UK. As such, while the retailer's reasoning seems sound on paper, we reckon that there's probably a bigger story at play here.
For starters, more and more people are opting for the convenience of web-based shopping, and while GAME does have an online presence, its prices rarely compete with those available on Amazon. And in terms of physical stores, supermarkets regularly undercut specialist retailers these days – especially when it comes to the biggest and most popular games.
There's a danger in that, of course: Tesco may be all too happy to lend shelf space to Call of Duty: Black Ops III, but it's not going to actively promote titles like Dragon Quest Heroes. But with all of these games now available on-demand from the PlayStation Store, it's certainly easy to see how GAME's bottom line could be impacted – even if Sony's digital prices aren't great.
This all comes at an awkward time really, as the PlayStation maker will be relying on specialist retailers like GAME to push virtual reality next year. With the company having only just emerged from administration, it looks like it has a second storm to weather. The question is: would you miss the UK chain if it snuffed it for good this time?
[source bbc.co.uk, via eurogamer.net]
Comments 34
Speaking personally here, I should be one of the biggest GAME customers, and yet I haven't bought anything from them for years. I think it's massively important we have a specialist retail presence in the UK, but as someone who buys more games and hardware than the average person, it's got to be a problem for them that I rarely ever choose to do business in their stores.
The problem with GAME is the lack of competitive pricing, both online and in store are pretty expensive in comparison to the likes of Shopto etc, even our local gaming shop is competitive in a time where local businesses are struggling. Wouldn't surprise me to see GAME go down again, would they get saved again? I'm not so sure
@get2sammyb maybe if the chain wasn't a POS who over charge and under pay on used games, routinely mess up deliverys of games brought of their site and treat customers poorly they would do better
also the fact they went BANKRUPT once so how can you trust them
@FullbringIchigo I mean, they consolidated the business from the last time, so they should be better positioned now. In Birmingham there were literally three GAME/GameStations within minutes of each other, which was always stupid.
While they fixed that, though, I do agree that they haven't learned their lesson on pricing. I imagine supermarkets use games as a loss leader to get people in the store, but GAME simply has to be competitive on price or find a different model.
I never understood why they didn't go the Waterstones-style model with GAME. If you go in a Waterstones these days, they often have a coffee shop feel to them, so it's more of a social experience than a shopping one. They could easily set up GAME stores with PS4/Xbox consoles for people to play, refreshments, etc. Set up challenges on the demos - if you can get a certain score, you get a 10% discount on the game, etc.
They need to make it more "social" if they can't compete on price. That's what I'd do if I was in charge, anyway.
Where i live, there is a Grainger games three shops down and they are generally 5-10 pounds cheaper than Game. Like Sammy, i buy alot of games every year but i can't recall the last time i brought anything from Game.
@get2sammyb a lot of that makes sense and would probably work
but i will admit i am going on personal experiance but it has been a while since i used them as we don't even have a GAME in my town any more (in fact we have NOWHERE to buy games physically in my town any more, thank god for Amazon ^_^)
Think people are underestimating the impact of shops like CEX and the copycats that have sprung up. At least in my area they do HUGE business.
The trade in prices are much fairer there aswell. Personally I haven't bought anything from Game for about 7-8 years. Online, supermarkets, CEX, eBay. Game for me exists purely for parents who don't have any idea where to buy games. Who's buying new releases there for £55 realistically
@SamcroUK This is the thing, though. Surely if they see their business is limited to clueless parents they should be adapting it so it's not. Like you potently point out, there are other stores beating them at their own game.
I would hate to see Game go bankrupt but as others have said their pricing is about £10-£20 more expensive than online. I remember wanting to buy 2 extra controllers to play with my mates and kids about a year ago, they were charging £60 each for the red and blue controllers and on Amazon they were £40-£45 each. How can you rip off your customers and expect them to keep coming back, places like Sainsburys and Tesco are much cheaper as well.
There's something about GAME stores that is massively off putting. Layout, design, decor, prices, staff, who knows, but I never feel comfortable in their stores. Added to the fact that they single handedly moved in a put out of business every single indie games shop in almost every town across the UK, its karma I guess.
I've known scores of superb indie shops over the years where you got to know the owners, had a real relationship with them and enjoyed not only visiting the store but giving them all your business. Knowing that you are supporting an individual or a small collective of individuals that share a common interest is a wonderful feeling. That kind of loyalty cannot be given to chain stores as you know your business means nothing to them other than a number on a sheet.
I know indie games shops are gone and will never return, but I blame GAME for their demise and have personally made a point of not buying from them for many years.
Grumpy old man? Maybe
@get2sammyb The social aspect is a pretty cool idea! I know they were the same company but I always preferred the gamestation nearby over the GAME, the staff seemed more relaxed and not like they were just trying to make money off you.
Of course they closed that store down and the only place for me to go is GAME now, or supermarkets. The only reason I ever buy from them is if they've got a collector's edition you can't get anywhere else, I hate how you feel forced to buy from them and at a higher price point. The nuketown preorder bonus recently for instance.
What I do now is buy most of my games digitally, it costs as much as game but is less hassle.
Without retail stores like GAME I imagine the prices on the ps store would be better too... As from my understanding they can't undercut them or they won't stock the games.
As someone who only buys online (not Digital - where possible) due to disabilities, I do purchase occasionally from Game as 'sometimes' they have the 'best' price and as a collector, Game are often the 'only' place I can get certain collector/limited editions. I know Ebay 'sometimes' offers these too but prices can be a joke. I ALWAYS buy new too.
The last time I bought from Game was only last week when I was able to buy Fallout 4 (Steelbook and postcards edition) for under £35 (£30 for standard edition at the time) which at the time was the best price. I have seen some Games listed though that are £20+ more expensive than alternative sites.
I never stick solely with one specific website though and have accounts with quite a few (Amazon, SimplyGames, ShopTo etc even Tesco Direct - which has had some great deals) - all of which prove that competition is great for the consumer and has saved me a lot of money - particularly on the RRP and a LOT compared to digital pricing.
Game would do better if they at least 'price matched' with its competitors online although I guess some things (like the exclusive to game editions) are difficult to 'price match'.
I also find their 'customer services' are not exactly the easiest to contact online either so you can understand why customers are more likely to look elsewhere first.
I just bought an electrical shaver from Game... Guess our Game is different after all.
Been working at game since september '13 and this does not surprise me, the fact you can regularly get products from Other places that are STILL cheaper than what the workers get with a staff discount and putting so much emphasise on upselling everything else in the whole store (ESPECIALLY phones/tablets) than putting the main focus on the core product just shows that the higher ups don't know what the hell they are doing.
I've used game a few times this year - more so when the wife has forced me to go shopping. I would grab a trade in or two and pop in. But all of the new releases I have bought have all come online, even my ps4 was bought online.
When alls said and done Game will go under if Sony establish regular sales and incentivize sales of new games on the ps store (under £40). The overheads Game has (rentals / management structure / recruitment) is also a huge negative which forces prices up.
Their trade prices are pathetic and their retail is over priced. I'm personally suprised that they've been around this long.
With so many decent alternatives out there, why anyone would choose to buy from GAME is beyond me.
Game has the same problem as GameStop over in Ireland. Ridiculously over priced software. I haven't bought a game from GameStop in years. Instead I buy online or if its a brand new release Argos. For example Fallout 4 was 75 Euro on release in GameStop. Argos had it for 55 Euro on release. Still not great but substantially cheaper. I doubt anything will change in the future either.
This may sound harsh but, I hope they die, they're scum.
I buy from Game on a regular basis but its mostly games that are on sale or I am buying credit for my PSN. The staff are fantastic and if you have questions they will find an answer for you. I have a good relationship with the store staff. However after saying all of this there are a few problems with the pricing. Its always more expensive to buy from them than other retailers unless they have an offer on the game. They are unwilling to match the prices which are online instore. Items can be £5 or £10 more expensive. Even if they did not advertise the fact that they did it matching online prices would be a good thing as it means my business is not going somewhere else. Game was in trouble a few years back and I do not think they have learned from prevous mistakes. If they carry on the way they are then I can see it vanishing from the high street and it would mean there would be pretty much no gaming shops around. You would just have the supermarkets and CEX selling games.
I enjoy browsing on my lunch break in GAME, but what someone said above about catering to clueless parents really resonated with me. The knowledge of some of the staff I encountered is mind numbing. For example, I heard one of them sell Destiny as an offline product to a parent...and, like in any store, I wish they would leave me alone haha.
Certainly, the fix for me would be the social stuff also mentioned above, café/arcade, guest speakers, less space given to "toys to life" and other tech. Of course the prices are higher, but that just goes with having a brick and mortar store. I don't want GAME to close as I think the impact on the industry would be huge with the lack of visibility on the high street. Love them or hate them, GAME is one of the last bastions of gaming in our towns and cities.
@get2sammyb The only time I've bought from GAME recently was Arkham Knight because it had the Red Hood mission but most of the time I go to Amazon or CeX for physical games but I've recently been using a PS4 price check site and GAME never appear on it for low prices.
What would help is another retailer to compete with Game on the high street to keep them competitive. At the moment its only really them and a few supermarkets. Otherwsie people are buying online.
@Bad-MuthaAdebisi You're right, that is harsh!
"GAME is blaming lower than expected sales of the PlayStation 3 and Xbox 360, as well as slow adoption of new-gen software."
Oh, right. Nothing at all to do with their ridiculous prices, then? Was in there a few weeks back. A new copy of Until Dawn was £55. A used copy was £45.
They've already gone under once for this very reason, and it seems the new owners took nothing on board.
Mind you, they're not alone. I used to buy from Play.com a lot, but their prices are nowhere near as good these days. It's a similar story with ShopTo. Currently, my first choices are Amazon or TheGameCollection, both of which offer some of the best prices around.
Black Friday was good, anything else would be getting ripped off.
Maybee if they targeted people who buy games instead trying sucker people at christmas with putting prices up 1 week then mega sale.
We have 2 stores in town. One is run by a total arrogant of a manager. How seems not to realise he just works in a bloody shop. The other one changes staff so often they are clueless. I still use game online but only go into stores to kill time while waiting for the other half.
Watch the language -Tasuki-
I haven't purchased a game from them for years. I get my games from Tesco and ASDA which usually saves me £10/£15. Its not like staff are very helpful at GAME either. I've lost count how many times I have over heard a customer asking for advice on a certain game and the staff at GAME had no clue. Sometimes I have even overheard staff say that a game is really good to a customer just to get a sale, when actually the game was total rubbish.
I used to shop at GAMESTATION which had staff that actually played games so they knew their product and could give useful and honest advice.
If GAME employed more people that played games so they can give advice and they could afford to compete with supermarkets they would easily turn things around for the better but, unfortunately I can't see that happening and as such I can see them going out of business sometime this generation.
Also, their pre owned prices are ridiculous, which is their bread and butter as they can easily make over 100% profit and do from that games section. But there are other alternative stores like Games World, CEX and multiple others that have much cheaper pre owned prices.
I've known GAME to charge around £5 more for a pre owned title over a brand new title. Its not too often, but often enough.
They're victims of their own greed and stupidity. Unless they wake up and make some changes real soon they won't last very much longer.
While I don't use or like GAME I don't want to see them close their doors for good, because like @get2sammyb said, Sony need stores like them to help sell their products such as PSVR and Microsoft also for their future tech.
@get2sammyb I am with you. I love that we have a specialised videogame chain but they really make it hard form me to shop there. The prices are not the best. And the last time I visited a store (the one in Hammersmith) I had to basically guide them through the process of finding Bloodborne GOTY edition in their own deposit, as kindly as I could. They had no clue it existed and had this empty boxes with the line "coming out soon" printed on them...
@get2sammyb Their prices are too high and they've got no other reason to go into a store. I can get almost EVERYTHING they sell online at a usually way better price. They've gone more heavy with the exclusives, but it's not the right model for them at all.
They're signing their own death warrant - I wouldn't miss them one bit. If I really need a game day one, I'll buy digital. If not, I'll just wait the delivery time knowing I've saved £15-£20 in the process. It's a shame to risk losing brick and mortar specialists, but they almost have no purpose, especially with the already mentioned staff who're notoriously inept, unknowledgable or disinterested altogether. Sad days.
They sold me a used game as brand new once (had save data on the cart) and didn't believe me when I complained. Not bought anything off them since and that was about 10 years ago.
Like Sammy said, the amount of money I spend on gaming is massive and it's a real problem for them they don't get a penny of it.
It seems their core audience - gamers - don't spend with them. I would like to have a specialist retailer on the high street but with their prices and attitude I can see why we might not for much longer.
Very occasionally their prices are quite competitive but it's rare. 9 times out of 10 it's far cheaper to go online with a site like Amazon. I love a good bargain so I don't tend to purchase many games from Game.
@get2sammyb I went in over the weekend and one of the staff - who for me should have basic, at least, knowledge of the games industry - thought that Yoshi was Tweety Pie!! And when I asked why Fallout 4 was still £10 more expensive than everywhere else I was told it was cos it had exclusive DLC when I said no version has exclusive content he said ours does and walked away. I personally hope it goes under terrible pricing, offer disc protection with every purchase and advising people to guide books when they buy a game make me hate the place.
"would you miss the UK chain if it snuffed it for good this time?"
Nah. Last time I was in GAME was to buy the PS Move.
Years ago, they used to have a great selection of PC games. It's since shrunk to a handful of obscure titles like "European Cement Mixer Simulator 2015" and they're mostly pushing overpriced console games, useless peripherals, and toys onto clueless parents. Their secondhand games are insultingly expensive, and given that Steam, Amazon, and Tesco give you better pricing there's no need to go to GAME any more.
The only good thing I can say about GAME is that - unlike Gamestation (remember them?) - the staff don't try to sell you 20 different things when you're at the checkout. That used to drive me mental.
Me: "I'll take this copy of Fallout 3 for the PS3, my good man."
Spotty Gamestation employee: "Do you want the tactics manual as well?"
Me: "No, just the game thanks."
Spotty Gamestation employee: "How about these PS3 thumbgrips? You can't be a serious gamer without them!"
Me: "Eh, no. Just the game you're holding. That's all. Thank you."
Spotty Gamestation employee: "What about this cool 3rd party charging station for your controllers? It's only £20."
Me: "No."
Spotty Gamestation employee: "I bet you'd love to buy a wicked cool Vault Tec lunch box!"
Me: "HISSSSSSS!"
Anyway. Like Blockbuster Video, dedicated high street vidyagames retailers have had their day.
GAME over, man. GAME over.
@Bad-MuthaAdebisi with you on that. I remember when Game was good, when they let you take a game home and if you didn't like it you could return it within 7 day's for a full refund. That system was of course abused by the public and didn't last but they went from great to pathetic, I think they target the clueless parent's on purpose so they can overcharge. I've not used Game for year's now.
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