GAME in serious trouble

OwaynOTT · 02-02-2012 3:21pm

Helix wrote: »

a tiny, tiny fraction of xtravisions income comes from rentals. the majority comes from sales

Pre-owned games and pre rented DVDs sales. And food like I mentioned.

Oh and the ****ty add ons they make you buy with consoles.

Gamesnash.ie: Pat · 02-02-2012 6:37pm

degrassinoel wrote: »

I was thinking why couldnt the likes of game get licenses to sell digitally as well boxed in their shops. I guess there'd be a whole legal can of worms with different publishers and that?

i use steam and origin myself but if i had a choice of keeping people in irish jobs by buying online through their client/website i'd do that rather than blow my cash on steamsales.

In fairness though, Game's selection of pc titles is just poor at best. I still dont understand why they've pretty much ignored that entire market for years in favour of consoles.
Maybe i'm just gettin' old

calex71 wrote: »

One word sums it up pretty much ..... GREED no money to be made on used PC games. and they can't sell used Steam titles.

Sounds harsh but that's the bottom dollar in a nutshell, they established their current business model around buy cheap used and sell used high.

If i could pay a bookie to take odds I'd be Xtravison, HMV, gamestop to fall in that order

Small counter to that - We don't stock PC games because we can't source them. The minimum order quantities are massive and combined with falling demand for physical games (because of the rise of services like Steam etc) means we simply can't stock them. Granted a company the size of Game should be able to buy enough and spread them around their stores but the point is that the publishers of certain games are quite happy for them not to be widely available in physical form because digital distribution makes them more - cuts out the middle man as such.

I've mentioned this numerous times before on boards but the pre owned market for console games is propping up the high street stores and keeping game prices for new copies artificially low. You can get the latest releases for €49.99 instead of €64.99 - €69.99 because of the pre owned market (69.99 being the RRP of top titles like Gears 3 for example) The lean towards pre owned was in part fueled by the high costs of new games - costs set by the publishers. There are times game stores including ourselves are loss leading or making a pittance on new games just to keep business / footfall going and are relying on pre owned sales to pay the bills. It's a ridiculous situation tbh.

It really isn't as clear cut as the "greedy retailer screws developers by making huge profit on pre owned games" scenario that a lot of people think it is.

ShadowHearth · 02-02-2012 8:30pm

I know I don't want anyone to losse their jobs and I do like brick and mortar shops, but 65-70eu for 1 game was a piss taking back then!

Ronan cork · 02-02-2012 8:59pm

i much prefer gamestop to be honest but losing an option is never a good thing. xtravision have pulled out of cork city center completely which is a sign of the changing times but is more about a business model that worked really well 10 years ago doesn't work anymore. i think this is true for game aswell but gamestop have changed their model to include used dvd's and cds, used hardware and even mobiles and i think that if they simplified their trade in system they would provide a great 'rental' service. e.g buy a new game for say €50 and bring it back within 7 days and get €45 store credit, within 14 days for €40 etc...xtravision were about €9 to rent a game for a week...I know it's more complicated than that but i'm not paid to work that out for them!! i also feel that these shops are overstaffed most of the time (usually 4+ staff in a tiny shop) and apart from the rates and lease wages are always the biggest expenditure...

Varik · 02-02-2012 9:16pm

Gamesnash.ie: Pat wrote: »

I've mentioned this numerous times before on boards but the pre owned market for console games is propping up the high street stores and keeping game prices for new copies artificially low. You can get the latest releases for €49.99 instead of €64.99 - €69.99 because of the pre owned market (69.99 being the RRP of top titles like Gears 3 for example) The lean towards pre owned was in part fueled by the high costs of new games - costs set by the publishers. There are times game stores including ourselves are loss leading or making a pittance on new games just to keep business / footfall going and are relying on pre owned sales to pay the bills. It's a ridiculous situation tbh.

It really isn't as clear cut as the "greedy retailer screws developers by making huge profit on pre owned games" scenario that a lot of people think it is.

Even if used games were to disappear these lower price points have been set.

phone games for €1 have already changed peoples views on higher priced portable games (3ds, vita), and while it's apples and oranges and personal taste as to the value of these games that won't apply when you see a game for €64.99 that as far as the majority are concern should be €49.99 still.

I think that shops that were cutting things close will still have to and possibly fail or raise prices and guarantee it.

There are few games that i need day one, online is fine for everything else and the less specialized shops can serve for the big games. This would leave me stuck if i really wanted a more niche game on release but many shops can't help with that now as things are.

xtravision here are far better than US versions, i listening to the engadget HD podcast and they listed out all the things blockbuster could have done and that xtravision were already doing.

Gamesnash.ie: Pat · 02-02-2012 10:22pm

Varik wrote: »

Even if used games were to disappear these lower price points have been set.

phone games for €1 have already changed peoples views on higher priced portable games (3ds, vita), and while it's apples and oranges and personal taste as to the value of these games that won't apply when you see a game for €64.99 that as far as the majority are concern should be €49.99 still.

I think that shops that were cutting things close will still have to and possibly fail or raise prices and guarantee it.

There are few games that i need day one, online is fine for everything else and the less specialized shops can serve for the big games. This would leave me stuck if i really wanted a more niche game on release but many shops can't help with that now as things are.

I believe you are correct - the perceived value of games has undoubtedly been lowered here in Ireland and the UK. It's compounded by the fact that most of the internet sites are based in Jersey / outside the EU and their prices do not include VAT.

If pre owned games were suddenly removed from the equation it is a 100% guaranteed outcome that high street stores here would close / or raise prices and drive more people online - ultimately closing the high street stores as you suggest.

As an example for you it costs us VAT inclusive €50.73 to buy in Fifa 12 at the moment. We're meant to be selling it for €59.99 - €64.99 here in Ireland but it can be picked up for €49.99 (it's cheaper for us to go down to another retailler and buy if off them!) - If we or anyone else priced it at €59.99 / €64.99 we'd be accused of ripping people off. Compare that to the perceived cheaper sites like sendit / the hut etc - current price for Fifa there is €46.99 but if you were to add 23% VAT onto that price you're bringing it to €57.81 quite close to the actual RRP that is set here in Ireland - which the vast majority of customers would say is a rip off price if it was offered to them here in store.

It's why I see the future being very bleak for high street games retailling here and my view point is echoed by the financial controllers underwriting credit insurance etc - hence the reports that started this OP but to be fair to Game they're not the only ones in this position - this is an industry wide issue.

Realistically what needs to happen IMO is for pre owned game sales to be stopped altogether and the publishers to come on board with lower cost prices to retaillers to compensate for it - and if at all possible lowered by enough to pass on some of this to the customer to bring prices lower at retail. This needs to happen to make it more attractive to customers who can no longer part fund their purchase by trading in. That keeps retaillers open on the high street which publishers and gamers do need.

Gamesnash.ie: Pat · 02-02-2012 10:27pm

ShadowHearth wrote: »

I know I don't want anyone to losse their jobs and I do like brick and mortar shops, but 65-70eu for 1 game was a piss taking back then!

Back then though games were being sold at the price point the publishers suggested - and the cost price to the retaillers was even higher than my example above. There was little emphasis on pre owned sales and this was the pricing needed to make a profit / stay in business. It wasn't a piss take at all but this echoes Variks point - the market here won't accept the price points needed.

danthefan · 02-02-2012 10:28pm

This might sound stupid but I've never seen how selling used game is massively different from piracy. The retailer can actually profit from the game twice, while the second time the developer gets nothing. I know the original purchaser of the game no longer has a copy, being one difference. Maybe I haven't thought it through very well. On the other hand I've bought plenty of used games so I'm not complaining. And I buy very few games in shops anymore, I either buy from Steam (as about 75% of my games purchases are for the PC) or buy from an online retailer as they tend to be cheaper.

RobbingBandit · 02-02-2012 10:31pm

HMV in Henry Street don't have any Final Fantasy XIII-2 C.E OR L.E. I went into 4 gamestop stores today looking for the Crystal Edition, only 2 of the 4 stores got 1 each on Xbox none on PS3, each store got more than 1 Batman Collectors Edition, not a good sign for any gamers without Credit Cards.

cloud493 · 02-02-2012 10:40pm

Its not out till tomorrow is it?( FF 13 -2)

Gamesnash.ie: Pat · 02-02-2012 10:41pm

danthefan wrote: »

This might sound stupid but I've never seen how selling used game is massively different from piracy. The retailer can actually profit from the game twice, while the second time the developer gets nothing. I know the original purchaser of the game no longer has a copy, being one difference. Maybe I haven't thought it through very well. On the other hand I've bought plenty of used games so I'm not complaining. And I buy very few games in shops anymore, I either buy from Steam (as about 75% of my games purchases are for the PC) or buy from an online retailer as they tend to be cheaper.

It's one side to the argument and I can see the point you're making. On the other side though it's not much different than trading in a car for a new car - used car sales fuel new games just as trade ins fuel new game sales. (Granted a person playing a used game will get the same experience as a new purchaser but this is being addressed by online passes etc)

Also as alluded to in my ramblings above the pre owned market is helping to keep new game prices lower than they should be. Games being sold at full retail price per the publishers RRP would sell a lot less units than the discounted price being offered to gamers at current levels. As such I'm inclined to believe that the sale of pre owned games benefits publishers in the long run.

Of course my opinion could be skewed as a games retailler but I would balance that argument out too by pointing to my previous statement(s) here on boards that I would be happy to see an end to pre owned sales in exchange for better pricing of new games.

RobbingBandit · 02-02-2012 11:28pm

cloud493 wrote: »

Its not out till tomorrow is it?( FF 13 -2)

It should be in stock as of this afternoon but not on sale until the morning. No one has the bloody Crystal Edition for freesale.

calex71 · 02-02-2012 11:32pm

Gamesnash.ie: Pat wrote: »

It's one side to the argument and I can see the point you're making. On the other side though it's not much different than trading in a car for a new car - used car sales fuel new games just as trade ins fuel new game sales. (Granted a person playing a used game will get the same experience as a new purchaser but this is being addressed by online passes etc)

Also as alluded to in my ramblings above the pre owned market is helping to keep new game prices lower than they should be. Games being sold at full retail price per the publishers RRP would sell a lot less units than the discounted price being offered to gamers at current levels. As such I'm inclined to believe that the sale of pre owned games benefits publishers in the long run.

Of course my opinion could be skewed as a games retailler but I would balance that argument out too by pointing to my previous statement(s) here on boards that I would be happy to see an end to pre owned sales in exchange for better pricing of new games.

I would a prime example of what you describe above, if I was unable to trade I would not be in a position to afford very many new games, I would say for every 10 games I buy now, if I was unable to trade towards them I would only get 5 games. Meaning a loss of revenue for retailer and publisher of 50% of my spend on new games.

The used car comparison is a good one, like you said not the same as you say in that the used game player has the same experience as the original owner but it is the same in my eyes when it comes to not being able to afford a new car if I can't trade in my old one.

In the current economic climate (god I hate that phrase) if used game sales were stopped tomorrow the industry would take a whopping hit. To what extent I don't know, I'd very very interested in seeing some independent research into it like how many trade old for new etc. and the projected ramifications if they could not do that. That may or may not make for some worrying reading to some in the industry.

LighterGuy · 02-02-2012 11:56pm

So they werent paying for new stock?

So what was the deal they had in place. They'd get 10,000 (or whatever) copies and would only have to pay for a portion of them at first?

I always thought a store, what ever store it may be, pays for all stock before reselling?

(i feel dumb

)

Potential-Monke · 03-02-2012 12:06am

wayne040576 wrote: »

You've basically created an online shop that people have to walk into. I'm not sure that would work... You can provide all of that online and more. Without the need for the customer to leave the house.

Not really. The difference is that in my digital display shop, you still get a physical copy after the purchase. And that's what i, and many others, want, a physical copy, something to take home there and then and to not have to wait for download or delivery. I wouldn't have played games like Bioshock, Singularity, Tiger Woods PGA, Fifa, the Lego series, and many others if it wasn't for pre-owned in store sales. I've never taken a chance on a game online (didn't know much about Bioshock before I bought it). I never will, I enjoy impulse buying in shops, I think too much before buying online.

calex71 · 03-02-2012 12:12am

LighterGuy wrote: »

So they werent paying for new stock?
So what was the deal they had in place. They'd get 10,000 (or whatever) copies and would only have to pay for a portion of them at first?

I always thought a store, what ever store it may be, pays for all stock before reselling?

(i feel dumb )

Most shops work that way, if they had to pay up front there would be serious liquidity issues for many shops, like not being able to pay staff until those 10000 games got sold, many shops have a credit line with a cash and carry etc. if they can't get credit then they may aswell shut up shop unless they have cash reserves to cover them

Varik · 03-02-2012 1:30am

calex71 wrote: »

I would a prime example of what you describe above, if I was unable to trade I would not be in a position to afford very many new games, I would say for every 10 games I buy now, if I was unable to trade towards them I would only get 5 games. Meaning a loss of revenue for retailer and publisher of 50% of my spend on new games.

Which means the money they get off you is higher when you have the option to trade games in, but every game traded is a possible lost sale of a new game.

You would be force to buy less games but someone else would be left with the option of either not getting any games or buying some new.

The best trade in offers lately were those 99c trades for new games, not a common trade and very limited to only the newest games (which would be hurt most from the trade ins).

10 new games bought for 99c each after selling 10 games back, you could possibly cost a developer 10 new sales compare to your suggested 5.
Then you get the trade 2 games in for a new one free, and that's possible worse. As with piracy you can't count every used sale as a lost new sale but when shops offer these deals it mean they can sell the game you traded in and they'll keep the price always just a bit below new to max their profit, so when buying used is never that much cheaper than new.

Someone could probably get a few letters after and before their name working on all this.

calex71 · 03-02-2012 1:46am

Varik wrote: »

Which means the money they get off you is higher when you have the option to trade games in, but every game traded is a possible lost sale of a new game.

You would be force to buy less games but someone else would be left with the option of either not getting any games or buying some new.

The best trade in offers lately were those 99c trades for new games, not a common trade and very limited to only the newest games (which would be hurt most from the trade ins).

10 new games bought for 99c each after selling 10 games back, you could possibly cost a developer 10 new sales compare to your suggested 5.
Then you get the trade 2 games in for a new one free, and that's possible worse. As with piracy you can't count every used sale as a lost new sale but when shops offer these deals it mean they can sell the game you traded in and they'll keep the price always just a bit below new to max their profit, so when buying used is never that much keeper than new.

Someone could probably get a few letters after and before their name working on all this.

Yes all true when It comes down to it, I was speaking more from a selfish me me me point of view really, the big picture is just as you outline !!! But I'm not making anyone buy used. The real problem is there comes a point and these days it's very soon after launch, so soon it's scary for publishers I bet that you simply can't buy a new copy of a particular game in bricks and mortar because they order so little new stock to sell and rely on the used stock to prop margins.Hence the 99c deals which on the face of it are great but when you look at what you would get on ebay etc are quite simply are nothing short of rip offs.

Actually if you wanted to get down to micros or macros then they really should not be allowed take pre-orders either as this gives them a feel for launch day demand and gives them a gauge as to how much new stock to order, never thought of it until if said i'd there but that actually is very sneaky of them.

readyletsgo · 03-02-2012 12:36pm

Jesus, I was in GAME in the Ilac around 6pm last night just having a look (always liked that GAME for some reason).
Xbox section is a complete mess as usual but it seemed they are not taking in second hand games anymore as there was just about a million copies of Battlefield 3, about 5 down and about 5 or 6 across, would have got a copy as never played any of them but still around €40, no thanks. They wont sell.

Very few other games on show too. Very small section for new Xbox games tbh, two sections on the wall and they are mixed in with preowned games.

But one thing that shocked me was in the Wii section, where the Nintendo Select games are I saw new copies of LoZ TP, now Ninty released these to be sold for around €20'ish new in all stores, GAME always had it (along with Mario Galaxy and Sports resort etc) €24.99, but now they have a sticker on LoZ TP at €49.99 with a sale sticker on it at €34.99! WFT GAME!?:mad:

These are the 'budget' games from Nintendo, why are they charging 120% extra?

Although I did see copies of Crush3d there, GAME do get some great neich games in, but they seem to charge why over the asking price, Gamestop is not much better tbh.

Rant over

Oafley Jones · 03-02-2012 12:52pm

Sephiroth_dude wrote: »

ah this is sad news,I'll be sad if game in cork closes down.

I remember being so excited when it opened.* It was great to have a proper games store, whereas before most of my games were bought in Micromail - when they were in that bungalow on the Bandon Road. Now, if it wasn't for the xbox I'd never darken the door there and even at that I'd say it's been over a year or two since I bought any titles there. They just aren't competitive in terms of price or selection. As for Xtravision, they're pretty much gone from Cork now, although I did see one in Bandon and was genuinely surprised. I can't see them lasting much longer either.

* I miss the days when PC games came in big fecking boxes, with huge manuals and other content. I'd still pay a premium for physical content if it came with extras you once got, e.g. the excellent history book in Secret Weapons of the Luftwaffe, or Strike Commander's Mercenary Digest - set in 2011 I've just realized.

Sarky · 03-02-2012 1:55pm

I still fondly remember the long sleeved tshirt that came with my copy of Civilization for the Amiga. That was one of the best items of clothing I'd ever owned.

-gilly-09- · 03-02-2012 4:17pm

I have been lookin for ages for Saints row the third, I've been into various GAME's and even Gamestop and HMV and it hasn't been available to buy. So maybe its not only game thats in trouble.

Gamesnash.ie: Pat · 03-02-2012 4:19pm

-gilly-09- wrote: »

I have been lookin for ages for Saints row the third, I've been into various GAME's and even Gamestop and HMV and it hasn't been available to buy. So maybe its not only game thats in trouble.

That's a supply issue from the publisher - we haven't been able to get it since Christmas. Stock expected second week of February apparently.

alastair_doom · 03-02-2012 4:42pm

Not much details, but looks like they're safe in the short term:

Game shares soar on revised banking facilities

Shares in the video game retailer Game Group have jumped 40% after lenders, led by state-backed RBS, revised the firm's banking arrangements.

Game said the new arrangements would allow it "to continue to trade".

Game Group shares plunged by more than a third in November after the retailer cut its revenue forecast.

It is now predicting an underlying pre-tax loss of about £18m for the year to the end of January.

The firm has also agreed to provide an updated strategic plan for review by its lenders, which also include HSBC and Barclays.

All aspects of the business's activities and strategy will be reviewed, including its 664-store overseas operations.

"Management may look to exit parts or all of its international operations to reduce losses and to raise cash," said Singer Capital Markets analyst Mark Photiades.

In September, Game reported a £51.5m pre-tax loss and its share price has fallen over 70% since the start of the year.

Game has seen its business eroded by competition from online-only retailers such as Steam and Amazon, with Game holding on to 19% of the online market.

http://www.bbc.co.uk/news/business-16868265

Mr. K · 03-02-2012 5:57pm

I hope they survive. More choice and competition is always good and it'd suck for all those who'd be out of work. I have a bit of a soft spot for GAME, I've bought many games and consoles from them over the years!

Grumpypants · 03-02-2012 10:29pm

Agghh my xmas present was a voucher card as a down payment on my Vita, getting nervous !

Doctor DooM · 07-02-2012 2:10pm

http://www.eurogamer.net/articles/2012-02-07-game-confirms-layoffs-at-head-office

Always hate to see people lose jobs.

Grumpypants · 07-02-2012 2:18pm

Wonder does its oversea's interests that are being sold off include Irish stores ?

dmcg90 · 07-02-2012 2:47pm

Grumpypants wrote: »

Wonder does its oversea's interests that are being sold off include Irish stores ?

I'd imagine so. I'll hazard a guess at multiple stores in one city being sold off (one in Cork and a few more in Dublin) and maybe Monaghan. Unless it closes down completely, then that would be a great shame.

evad_lhorg · 07-02-2012 4:48pm

Doctor DooM wrote: »

My trip into Game was the most telling though, as I was informed I was about the 15th person to ask for it that day, with a shrug. It was all I could do not to grumble "might be an idea to get some in then, you being a game shop and all".

I want to spend money in bricks and mortar, but they don't want me too. I HAD to go to Amazon and wait for it.

Thats why you preorder games! If you preorder it they will get it in. They arent going to stock obscure games like king of fighters if they dont have a demand for it and the only way they can judge demand is on hom many orders they have.

Retr0gamer · 07-02-2012 5:07pm

Doesn't help sometimes. If they don't have the obscure game on the 'system' they can't preorder it and won't. I'd rather have the choice to buy it the cheapest on the day of release rather than making a blind decision anyway.

cherryghost · 29-02-2012 5:29pm

Bump. GAME announced this morning that they will not be stocking any EA games released in March.

To top that off, GAME shares have fallen over 15% since and still falling. Talk about digging your own grave.

EDIT: Just noticed this was posted on the ME3 thread, not sure why though as it applies to ALL EA Games, not just ME3.

super_furry · 29-02-2012 5:42pm

Yep looks like they're circling the drain. I had both The Last Story and Mass Effect pre-ordered in there and was let down with both so I can't see that I'll be ordering from them again.

They'd be a big loss on the Irish main street, leaving many people just stuck with either Gamestop on Xtra-Vision (who may not be too far behind game).

degrassinoel · 29-02-2012 6:02pm

game dropping out of the market might actually boost sales in Xtravision and Gamestop.

GT_Dublin · 29-02-2012 6:03pm

Quote:

The news was confirmed in a leaked memo sent to staff today by GAME Group northern Europe MD Tom Devine. It was obtained by IGN and transcribed by Edge. Here's the full text:

"Dear all,

Last week we held an event for our partners in the industry and explained the challenges we are facing in the short term - and we asked for their support.

We asked them to trade with us using manageable credit terms, and for them to continue to do that whilst we work through the strategic review and refinancing of our business.

We gave the industry commitments - we committed to integrity and openness in our dealings, and working with everyone equally.

We committed to only stocking products on which we could get the right credit terms, regardless of the title or the supplier. We will not stock products if the terms are not right for our business - we will not sacrifice long-term credit requirements for short-term sales opportunities.

As a result of us taking this position - a position that we believe is critical to our long-term health as a business - we have taken the very difficult decision to not stock EA's March releases, including Mass Effect 3.

As a specialist retailer dedicated to games and gaming, it is never easy to make a decision not to stock a title, particularly one with such a strong fanbase. But it is imperative that we treat every supplier evenly, that we stick to our commitments, and that we don't sign up to payment terms that will hamper us further in the future.

It is even more critical that we manage this appropriately with our loyal customers. We know they will be disappointed regarding Mass Effect in particular and in recognition of this, we will be contacting our Mass Effect pre-order customers and as a gesture of goodwill we will be offering them £5 of reward card / elite points.

I know that many of you will have to manage customer and supplier feedback directly, and I would like to thank you in advance for your support and am happy to answer any questions you have directly - just grab me as I walk around."

Looks like EA might be the bad guy here. I still don't think this was a good decision for Game from a consumer confidence point of view.

kearneybobs · 29-02-2012 6:10pm

degrassinoel wrote: »

game dropping out of the market might actually boost sales in Xtravision and Gamestop.

You say that as if that's a good thing. Yeah, it's a good thing for the competitors but not really for anyone else.
In the end, this means bad things for the employees and it's a serious dent as far as competition goes amongst the retailers. As a gamer who loves a bargain/cheap games I cant really see a boost in sales for the competitors as a positive thing.

degrassinoel · 29-02-2012 6:14pm

well, in fairness i'm with ye there on getting the most out of my cash. But i'd rather see one company go bust, than two.

If this decision does put a nail in their own coffin, so be it. At least the other two companies might have a fighting chance of keeping their employees and us as customers.

super_furry · 29-02-2012 6:17pm

Thing is, this whole thing's a vicious circle. They're in trouble because fewer people are shopping there, but their current problems are only going to put more people off from buying there.

I'm also surprised with how uncompetitive GAME have become over the last six months or so. I was in the Ilac Centre's store on Sunday and the vast majority of their increasingly limited new stock was €5 to €10 more expensive than HMV and Gamestop.

Jester252 · 29-02-2012 6:28pm

I can see this from EA point of view will you be willing to sell something to a person that might not be able to pay you for it in full

Dozen Wicked Words · 29-02-2012 6:37pm

They aren't stocking Mario Party 9 either which, while not in Mass Effect or EA league, its a huge, popular title on the Wii they are missing too.

cloud493 · 29-02-2012 6:43pm

Game should do a massive clear out to get rid of all their preowned crap that takes up shelf space, and use that money to get the new titles in,

cherryghost · 29-02-2012 6:43pm

And they didn't stock and Ubisoft Vita games last week either. They're truly ****ed.

cherryghost · 29-02-2012 6:45pm

cloud493 wrote: »

Game should do a massive clear out to get rid of all their preowned crap that takes up shelf space, and use that money to get the new titles in,

That's not the problem. The problem is they have a poor preowned section that Gamestop is just slaughtering them with. They cannot compete. Retailers that sell new games only will only go in the hole very quickly, as one a single-sided business goal just won't cut the mustard.

VinLieger · 29-02-2012 7:41pm

This is very sad to see happen, for a long time i was a loyal GAME customer but in recent years the simple fact was other stores had better prices and online delivery services so i stopped using them.
I would have gladly ordered online from them if Ireland had been properly catered for, like having prices in euros and not having to pay for overseas shipping, the fact that other stores managed to get this right here proves that they either were too stupid to see what they were doing wrong or just didnt care, either way its completely their own fault

Venom · 29-02-2012 7:52pm

cloud493 wrote: »

Game should do a massive clear out to get rid of all their preowned crap that takes up shelf space, and use that money to get the new titles in,

It's the pre-owned crap that they make the most money on :cool:

I can't even remember the last time I bought something from Game tbh.

Pacing Mule · 29-02-2012 9:01pm

GT_Dublin wrote: »

Quote:

The news was confirmed in a leaked memo sent to staff today by GAME Group northern Europe MD Tom Devine. It was obtained by IGN and transcribed by Edge. Here's the full text:

"Dear all,

Last week we held an event for our partners in the industry and explained the challenges we are facing in the short term - and we asked for their support.

We asked them to trade with us using manageable credit terms, and for them to continue to do that whilst we work through the strategic review and refinancing of our business.

We gave the industry commitments - we committed to integrity and openness in our dealings, and working with everyone equally.

We committed to only stocking products on which we could get the right credit terms, regardless of the title or the supplier. We will not stock products if the terms are not right for our business - we will not sacrifice long-term credit requirements for short-term sales opportunities.

As a result of us taking this position - a position that we believe is critical to our long-term health as a business - we have taken the very difficult decision to not stock EA's March releases, including Mass Effect 3.

As a specialist retailer dedicated to games and gaming, it is never easy to make a decision not to stock a title, particularly one with such a strong fanbase. But it is imperative that we treat every supplier evenly, that we stick to our commitments, and that we don't sign up to payment terms that will hamper us further in the future.

It is even more critical that we manage this appropriately with our loyal customers. We know they will be disappointed regarding Mass Effect in particular and in recognition of this, we will be contacting our Mass Effect pre-order customers and as a gesture of goodwill we will be offering them £5 of reward card / elite points.

I know that many of you will have to manage customer and supplier feedback directly, and I would like to thank you in advance for your support and am happy to answer any questions you have directly - just grab me as I walk around."

Looks like EA might be the bad guy here. I still don't think this was a good decision for Game from a consumer confidence point of view.

EA is not the bad guy here at all. Read between the lines of the bolded section.

We will not stock products if the terms are not right for our business - we will not sacrifice long-term credit requirements for short-term sales opportunities.

Game want to increasingly finance themselves, their running costs and more importantly their continued losses from credit given by the publishers. This is a scenario where a business already has the sales (pre orders) in place - knows that the item they buy in will be sold and cash in the bank within 5 days of it landing into them yet they pretend that it doesn't suit their strategy to stock the title.

Pure bullsh!t - even if EA said no more credit a retailler knowing they had guaranteed sales and hopefully profits to be made on the title would find a way / pay upfront if neccessary to secure that guaranteed profit. The truth is more likely that Game have absolutely no cash funds left and can't afford to pay for the stock up front nor will anyone finance them to do it because they are clearly so far behind elsewhere.

A company in trouble doesn't decide not to carry a particular line because of disadvantageous credit terms when there is money to be made from it (and a string of pissed off customers whose orders you would be cancelling) unless they simply can't afford to.

Pacing Mule · 29-02-2012 9:07pm

super_furry wrote: »

Thing is, this whole thing's a vicious circle. They're in trouble because fewer people are shopping there, but their current problems are only going to put more people off from buying there.

I'm also surprised with how uncompetitive GAME have become over the last six months or so. I was in the Ilac Centre's store on Sunday and the vast majority of their increasingly limited new stock was €5 to €10 more expensive than HMV and Gamestop.

... Who are selling at a loss / heavy discounts from the RRP to do so. GAME are effectively the first of the bigger retailers to hit the bottom of the barrell from the price war that has been going on in the UK and Ireland for the past few years. HMV are in as much trouble as Game but are being supported by the movie studios who can't afford to see the only specialist retailer of DVDs etc go out of existence. Gamestop have massive pockets and are waiting for Game to go under. You're going to see game prices heading back to the €60 direction soon.

PickledLime · 29-02-2012 9:16pm

Pageant Messiah wrote: »

... Who are selling at a loss / heavy discounts from the RRP to do so. GAME are effectively the first of the bigger retailers to hit the bottom of the barrell from the price war that has been going on in the UK and Ireland for the past few years. HMV are in as much trouble as Game but are being supported by the movie studios who can't afford to see the only specialist retailer of DVDs etc go out of existence. Gamestop have massive pockets and are waiting for Game to go under. You're going to see game prices heading back to the €60 direction soon.

But are Gamestop willing to reach into their pockets?

Dunno about ye, but i've noticed recently that they've less staff working, shop isn't as well maintained. They seem to have had trouble getting certain stock too - were out of stock for how long of Skylanders because 'there wasn't enough been made'. Quick trip to Smyths sees the things stacked high and was told they're getting them regularly.

They also seem to be out of stock of Saints Row 3 since it came out. And where the hell are the cds gone?!

I have my suspicions about them (remember that they recently bailed out of NI and Portugal).

RobbingBandit · 29-02-2012 9:22pm

CDs were a bust for them,they didn't sell as well as hoped and now are pretty much in the bin. Bad for business all round if GAME do go bust as everyone needs competition for good business.

PickledLime wrote: »

But are Gamestop willing to reach into their pockets?

Dunno about ye, but i've noticed recently that they've less staff working, shop isn't as well maintained. They seem to have had trouble getting certain stock too - were out of stock for how long of Skylanders because 'there wasn't enough been made'. Quick trip to Smyths sees the things stacked high and was told they're getting them regularly.

They also seem to be out of stock of Saints Row 3 since it came out. And where the hell are the cds gone?!

I have my suspicions about them (remember that they recently bailed out of NI and Portugal).

NTMK · 29-02-2012 9:26pm

Pageant Messiah wrote: »

You're going to see game prices heading back to the €60 direction soon.

Doubt it tbh if they do that the online stores will destroy them

Ive been noticing GAME in Limerick having nothing but worthless titles like Fifa 08 in the preowned section and new game prices increased by €5

GAME in serious trouble

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