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GAME in serious trouble

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  • Closed Accounts Posts: 11,835 ✭✭✭✭cloud493


    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,


  • Moderators, Technology & Internet Moderators Posts: 17,129 Mod ✭✭✭✭cherryghost


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


  • Moderators, Technology & Internet Moderators Posts: 17,129 Mod ✭✭✭✭cherryghost


    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.


  • Registered Users Posts: 17,568 ✭✭✭✭VinLieger


    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


  • Registered Users Posts: 6,984 ✭✭✭Venom


    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.


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  • Registered Users Posts: 5,055 ✭✭✭Pacing Mule


    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.


  • Registered Users Posts: 5,055 ✭✭✭Pacing Mule


    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.


  • Closed Accounts Posts: 1,061 ✭✭✭PickledLime


    ... 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).


  • Registered Users Posts: 18,058 ✭✭✭✭RobbingBandit


    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.

    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).


  • Closed Accounts Posts: 3,575 ✭✭✭NTMK


    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


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  • Registered Users Posts: 5,055 ✭✭✭Pacing Mule


    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).

    Gamestop won't be reaching into their pockets at all - Games demise will mean they can stop discounting so much and pay for some extra staff. :D

    Shortages of Skylanders and Saints Row 3 in particular were industry wide and down to the publishers.


  • Closed Accounts Posts: 1,061 ✭✭✭PickledLime


    Figured the cds weren't working (i know most people, including myself, who buy music physically, don't part with it easily, whereas dvds are only watched a few times).

    I don't think they're sinking quite yet, but i'm convinced they've sprung a fair few leaks.


  • Registered Users Posts: 5,055 ✭✭✭Pacing Mule


    NTMK wrote: »
    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

    It's simple economics that game retaillers cannot survive on the margins that they have been operating on. Prices in bricks and mortar retail will have to go back up - and you're absolutley right this will drive more people to VAT free online retailers (this is why most are so much cheaper) but there will be a core bricks and mortar demand which with a big player like Game gone, Gamestop could survive on.


  • Closed Accounts Posts: 3,575 ✭✭✭NTMK


    It's simple economics that game retaillers cannot survive on the margins that they have been operating on. Prices in bricks and mortar retail will have to go back up - and you're absolutley right this will drive more people to VAT free online retailers (this is why most are so much cheaper) but there will be a core bricks and mortar demand which with a big player like Game gone, Gamestop could survive on.

    Im not saying it will be a quick downfall but i imagine that with only GS as the main B&M retailer publishers will have less concerns about telling Retailers to **** off as regards DD pricing and with a new gen of consoles comes better DD solutions

    Give it 5 to 10 yrs and GS will be gone from the high street unless they have some in genius plan

    EDIT also as regards the preowned cds in GS that was an idiotic business move between piracy and new cds costing €10 who the f**k would buy preowned disc and how could they make any money of it


  • Closed Accounts Posts: 13,126 ✭✭✭✭calex71



    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?!

    .

    From what I heard they got rid of assistant managers in a lot of shops.

    Saints Row 3 was a supplier issue and effected every shop I think.


  • Registered Users Posts: 12,473 ✭✭✭✭Varik


    Venom wrote: »
    I can't even remember the last time I bought something from Game tbh.

    I do, pre-ordered Arkham City from them and it cost €10 more than shop around it when i went to get it.

    Don't care if the go or just down size as long as all those pre-order bonuses go to someone else who doesn't charge far more than everyone else.


  • Closed Accounts Posts: 1,061 ✭✭✭PickledLime


    calex71 wrote: »
    From what I heard they got rid of assistant managers in a lot of shops.

    S**t, that surely means all isn't well.


  • Closed Accounts Posts: 956 ✭✭✭RiseToTheTop


    I only buy online now, bar the couple, and I mean couple of in it's strictest sence, Wii games I get.

    I've a 2TB drive on my table, not a shelf full of games that could be used for other functions.


  • Closed Accounts Posts: 2,515 ✭✭✭LH Pathe


    GAME HELP

    and they could swap the purple backdrop for red


  • Registered Users Posts: 14,685 ✭✭✭✭BlitzKrieg


    meh response to the news.

    You expect EA possibly the most vocal of the big publishers over the sh*t game shops put them through with the inflated 2nd hand market to give one of them a break? Hell no! EA have been itching to kill off the gameshops, they've been firmly sticking their feet into the online markets over the last few years (with a lot of mistakes) and doing everything they could to discourage second hand sales from extra content to locked multiplayer.

    And then one of them comes cap in hand to them?

    EA are obviously going to throw them out. The games industry is at its most fragile since the video game crash of 1983. Games are costing too much to make, the 2nd hand market is out of control, the market lifespan of a product is far too short and the notion of recycling products in the market is still a complicated and costly affair. EA know this and have for a while.

    And they once said the games industry was recession proof hah!


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  • Closed Accounts Posts: 2,515 ✭✭✭LH Pathe


    I'm itching to kill off the game shops too. If I can purchase a definite upload sooner than an up in the air transport that may not have been ordered in anyhow, such is the case of late... then all that physical resources transportation etc for a generally uploaded medium is due a death anyhow.


  • Registered Users Posts: 187 ✭✭Viral Vector


    I'm not surprised with this!

    They fought me tooth and nail when I bought a new Saints Row 3, that didn't work, off them for €50! Took me ages to get a refund!

    To be fair though...GAME in Galway does have better deals on used games than the Gamestop up the road!


  • Registered Users Posts: 5,055 ✭✭✭Pacing Mule


    LH Pathe wrote: »
    I'm itching to kill off the game shops too. If I can purchase a definite upload sooner than an up in the air transport that may not have been ordered in anyhow, such is the case of late... then all that physical resources transportation etc for a generally uploaded medium is due a death anyhow.

    Will you pay extra though ?


  • Registered Users Posts: 23,246 ✭✭✭✭Dyr


    Last game I attempted to buy from GAM was the PC version of the elder scrolls: skyrim on release day. I was told if i had'nt pre-ordered I could forget about it.


    Went back to the office and bought it off steam 10 minutes later.

    Then they wonder why they're dying on their arse? :confused:


  • Registered Users Posts: 3,027 ✭✭✭Lantus


    DVD's, music, BD and gaming are formats that are small and easily made digital. I think we have all known for a while that shops like HMV and the various big Game shops are under increasing pressure every day due to the ease and popularity of online purchases either by post or download.

    The lower cost base of online makes it hard for shops with often large overheads for leases and lighting and heat and staff etc to compete on a level playing ground.

    I'm personally sad because even though I dont buy DVD's these days or many items from these stores stores like HMV are a great place to browse and escape the multitude of clothes shops when I'm out with the wife.

    In terms of pre-owned games it's looking very likely that the next gen of consoles will feature something to prevent this along the lines of a content code that we are now used to for extra maps etc. As game shops make most of their money from pre-owns this alone would spell the end of them. The online market would also take a battering.

    I think in terms of what will happen say in 5 years time by which time the next xbox and Wii will of arrived (and maybe even the next PS) the supermarkets will be calling the shots and selling around 15 to 25 of only the most popular titles. Traditional game shops will be gone and assuming pre-owned being made extinct there will be a very generic flat pricing across all outlets as producers take back control over pricing and distribution. Whether this results in cheaper games because of no more pre-owns avoiding royalty's is debateable as it is just as likley fewer people will purchase the game anyway.

    That said I think there is still an opportunity for specialist outlets that do much more than just sell games but provide a full experience and social hub that gamers can enjoy.


  • Registered Users Posts: 5,112 ✭✭✭Blowfish


    Lantus wrote: »
    I think in terms of what will happen say in 5 years time by which time the next xbox and Wii will of arrived (and maybe even the next PS) the supermarkets will be calling the shots and selling around 15 to 25 of only the most popular titles. Traditional game shops will be gone and assuming pre-owned being made extinct there will be a very generic flat pricing across all outlets as producers take back control over pricing and distribution. Whether this results in cheaper games because of no more pre-owns avoiding royalty's is debateable as it is just as likley fewer people will purchase the game anyway.
    In 5 years time, I'd pretty much expect no retailers to stock games at all. We've long moved past the point where there's a good reason to buy physical copies of games. Granted there'll probably still be a few people in the back end of nowhere that may need a physical copy, but online retailers can easily fill that niche.


  • Registered Users Posts: 988 ✭✭✭Zeouterlimits


    Blowfish wrote: »
    We've long moved past the point where there's a good reason to buy physical copies of games. Granted there'll probably still be a few people in the back end of nowhere that may need a physical copy, but online retailers can easily fill that niche.
    Nope. Nope. Nope. You're way overestimating the average broadband speed/bandwidth.
    With most games at 6 GB and up, most of the public would be unable to download this in the time they want without leaving their system running while they were at work/school.


  • Moderators, Music Moderators Posts: 25,866 Mod ✭✭✭✭Doctor DooM


    Nope. Nope. Nope. You're way overestimating the average broadband speed/bandwidth.
    With most games at 6 GB and up, most of the public would be unable to download this in the time they want without leaving their system running while they were at work/school.

    I was just talking to someone who was fined 20 euro by their BB provider for breaching their 10GB cap- and apparently that's the best service they can get. That's 1 game a month :D

    We're a long way off.


  • Registered Users Posts: 5,112 ✭✭✭Blowfish


    Nope. Nope. Nope. You're way overestimating the average broadband speed/bandwidth.
    Actually, I think you are underestimating it. The average download speed currently stands at 8.28Mbps for Ireland. For a 6gb file, that's about an hour and a half.

    Services like Steam currently will preload games for you automatically in the background several days before the release date if you preorder. This means that you end up being able to play just a couple of minutes after the midnight release.

    Given that we are talking about 5 years down the line when download speeds will have increased even more, it's not a difficult thing to imagine for Microsoft/Sony to start pushing digital purchases in a big big way as it both reduces piracy and gives them pretty much total control over distribution.


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  • Registered Users Posts: 978 ✭✭✭AceCard Jones


    Blowfish wrote: »
    Actually, I think you are underestimating it. The average download speed currently stands at 8.28Mbps for Ireland. For a 6gb file, that's about an hour and a half.

    Services like Steam currently will preload games for you automatically in the background several days before the release date if you preorder. This means that you end up being able to play just a couple of minutes after the midnight release.

    Given that we are talking about 5 years down the line when download speeds will have increased even more, it's not a difficult thing to imagine for Microsoft/Sony to start pushing digital purchases in a big big way as it both reduces piracy and gives them pretty much total control over distribution.

    I'd imagine that all the larger areas in Dublin having speeds of 100Mb available to them might slightly throw that average figure off a bit considering the rest of Ireland (including outer Dublin) would be stuck with 3Mb at most. And they'd want to beef up the HDD capacity of future consoles if Blu Ray disc games are to be sold digitally. Also pushes your figures from an average of 6GB a game right up to potentially 25GB per game. A lot of downloading and a lot of HDD space.

    I'd rather physical media even if my Broadband speed was the best in the country.


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