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Retail

GAME looks mid to long-term with PwC assistance

Tue 14 Feb 2012 11:02am GMT / 6:02am EST / 3:02am PST
BusinessRetail

Accountancy firm conducting strategic review for troubled retailer

Struggling High Street specialist GAME has hired PricewaterhouseCoopers to conduct a strategic review focused on the mid and long-term prospects of the company.

The retailer is expecting a pre-tax loss of £18 million for the financial year ended January 31, and is surviving on reorganised lending facilities and the potential sale of its overseas business.

According to The Telegraph, PwC may see a more positive future for the retailer by taking into account upcoming hardware and software releases in the cyclical games business.

Outlook is bleak for the GAME Group, with many in the games industry beginning to ask what will happen if the UK's only dedicated specialist chain disappears from the High Street altogether.

5 Comments

Peter Dwyer
Games Designer/Developer

481 290 0.6
If Game does fail followed closely by GameStop then I think Activision and EA will have real difficulties. Although they seem to be saying that 30 odd percent of their business is now download. I'm certain that they couldn't survive in any meaningful sense without the other 70% which is from direct retail sales and Amazon.

It's going to get ugly for them and let's face it they brought this on themselves by trying to shoot Game in the foot over pre-owned sales. It was pure greed on the developers and Games part and now it's spiraling into a huge ball of cow dung.

Posted:2 years ago

#1

Stephen McCarthy
Studying Games Technology

205 0 0.0
jokes are less funnly when you point them out.

Posted:2 years ago

#2

Ritchie Duncan
Studying Game Design and Production Management

4 0 0.0
The prices that Game were asking were generally higher than other outlets. Prebooking online from Amazon etc of new games, such as BF3 and CoD must be impacting on their business. Often the games turn up a day or two before release date, I can't imagine Game popping through the back shop and giving you a backhanded early copy. Another bonus of shopping online I suppose

I must admit, I'm shopping for many new games at Tesco or other supermarkets these days, they can ask as much as £10 less for the same game.

How the hell do they do it without subsidising it themselves?

Posted:2 years ago

#3

Ray Kirkland
Audio designer / Composer

12 0 0.0
Supermarkets can do that because its not all they sell, their aim is to get you into their store to do your weekly shop, they make a massive loss on most games, it worries me that no one cares where they get games from these days, admit idly GAME are my least favourite retailer for games, but Gamestation and others that struggle to price match supermarkets are vital to the growth of the games industry. trust me, if you want games to still be in shops in a few years then don't buy them from supermarkets, pay the extra few pounds for people to actualy know what they are selling.

Posted:2 years ago

#4

Lee Hewes

10 9 0.9

It's true that a lot of supermarkets don't know the product they are selling when it comes to gaming. I had to explain in detail for five minutes what Skyrim was before she replied "that thing where you help dragons give birth?" (Dragon Birth, Dragonborn, same difference right?)

Ray's right in that supermarkets do make a loss and usually have other companies contracted in for them to distribute all the games, consoles etc and while I would prefer to buy a game from someone who knew what they were on about, a lot of people don't really have the extra money to pay for it elsewhere not to mention that the simplest way of doing things is often preferred. You do your food shopping, get petrol and now you buy your games cheaper too.

Quite simply there has to be more reason for you to go to stores like GAME if they’re going to charge more. Other places are cheaper or even less hassle to purchase as many companies such as Amazon or Play allow you to purchase it without taking a step out your door. If GAME goes, online companies and supermarkets will fill the niche unless someone comes up with an innovative way of bringing people in.

Posted:2 years ago

#5

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