GAME in serious trouble

Gamesnash.ie: Pat · 05-03-2012 6:58pm

ShadowHearth wrote: »

This quite shocking. Developers are bitching so much about second hand sales, but they are not giving anything to retailers. If they make only 3-4eu per game and them they have to pay wages, deleveries, storage, electricity, then I am not surprised most of retailers were pushed in to second hand ge market!
It's like scratch my back and I will scratch yours, but looks like publishers forgot their part of the deal. I know someone will run in and scratch my face for saying this, but publishers/developers are to blame for second hand sales too.

To be fair it's not really the publishers fault.

The publishers set an RRP for their products and a cost price that matches that RRP. Retailers are meant to be selling the new games at €55 - €70 because that's what the publishers feel their product is worth, but the market pressure / competition in recent years has seen what is effectively a price war between retaillers who have ended up using the pre owned market as a way to fund this.

Publishers though are well aware that the price at retail here is artificially low and the reasons why - but the positive effect on sales of the lower price point is generally overlooked when complaints are made about pre owned sales.

ShadowHearth · 05-03-2012 7:07pm

Gamesnash.ie: Pat wrote: »

To be fair it's not really the publishers fault.

The publishers set an RRP for their products and a cost price that matches that RRP. Retailers are meant to be selling the new games at €55 - €70 because that's what the publishers feel their product is worth, but the market pressure / competition in recent years has seen what is effectively a price war between retaillers who have ended up using the pre owned market as a way to fund this.

Publishers though are well aware that the price at retail here is artificially low and the reasons why - but the positive effect on sales of the lower price point is generally overlooked when complaints are made about pre owned sales.

Feck this... No way I want to go to the times of 70-80eu games!

So only two options on table:

1. See all retailers gone and have only big boys like amazon
2. Get back to 70-80eu prices per games.

So far I can see that option 1 is more possible. No way games will go 80eu, because gamers will just eat them alive.

Blowfish · 05-03-2012 7:21pm

ShadowHearth wrote: »

Feck this... No way I want to go to the times of 70-80eu games!

So only two options on table:

1. See all retailers gone and have only big boys like amazon
2. Get back to 70-80eu prices per games.

So far I can see that option 1 is more possible. No way games will go 80eu, because gamers will just eat them alive.

This is precisely why I see publishers shifting their focus to online or digital sales. The future is not looking particularly rosy for bricks and mortar shops.

RobbingBandit · 05-03-2012 7:23pm

Do GAME still on the Gamestation stores in the UK and are they also subject to the EA embargo?

super_furry · 05-03-2012 7:52pm

RobbingBandit wrote: »

Do GAME still on the Gamestation stores in the UK and are they also subject to the EA embargo?

Yes to both.

chrislad · 05-03-2012 8:01pm

Gamesnash.ie: Pat wrote: »

Here's an option for you - go in and buy PSN credit or microsoft point cards / monthly subs. Whatever breakdown gets you nearest to the credit you have. Send the cards themselves into us and we will credit your gamesnash account with the full retail price from our site (for email dispatching) That way you get to transfer your credit / protect it from a Game liquidation for the price of the postage into us. PSN cards and microsoft points won't depreciate like games so we are happy to do this. You can use the credit whenever you want in the future.

Just to be 100% clear I am not saying that Game will liquadate with voucher holders being left as creditors but if anyone feels that this may happen them and are in the same situation to yourself then consider us an insurance policy.

Problem is, and much kudos for the offer, that GAME don't have any of the above. Spoke to a friend who works in a branch and he said they can't get PSN card or MS Points at the moment.

Notorious · 05-03-2012 8:10pm

chrislad wrote: »

Problem is, and much kudos for the offer, that GAME don't have any of the above. Spoke to a friend who works in a branch and he said they can't get PSN card or MS Points at the moment.

I can confirm that certain stores have both back in stock!

But in other news http://www.escapistmagazine.com/news/view/116144-Capcom-Ditches-Game-As-Possible-Closure-Looms

the escapist wrote:

Troubled U.K. retailer Game announced that it will not be stocking Street Fighter X Tekken or Asura's Wrath as executives consider "pulling the plug" rather than struggling through more financial losses.

"It's always darkest before it goes totally black," as the old saying goes, and it's getting very dark indeed for U.K. videogame retailer Game. The company announced today that it will not be carrying Street Fighter X Tekken or Asura's Wrath, both scheduled for release on March 9. The games join Mass Effect 3, Mario Party 9, Tiger Woods 13, Sims 3: Showtime, The Last Story and FIFA Street among the major releases that will be absent from Game shelves in March.

"Unfortunately Capcom must confirm that Street Fighter X Tekken for PlayStation 3 and Xbox 360 and Asura's Wrath, both scheduled for release on Friday March 9, will not be stocked by Game or Gamestation either in their retail outlets or on their online stores operating in the UK and Ireland," a Capcom rep told MCV. The game will still be available through other retailers in the U.K. and Ireland, the rep added, and Game is offering full refunds on preorder deposits.

This latest blow could spell the end for the Game Group, as The Express says executives are already considering shutting down the company completely rather than trying to struggle through future losses. "There is a real risk that Game's directors will pull the plug because they can't be sure that the company can survive through the next trading season, and then insolvency becomes inevitable," a "source close to the situation" said. "They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses."

The Royal Bank of Scotland, which heads a consortium of Game Group lenders, is reportedly growing antsy with the situation but can't push too hard for more closures for fear of making things worse. "Suppliers pulling their products is a stepping stone to administration, but the problem for RBS pulling the plug is that it will be an expensive and complex administration because Game has 1,274 stores across Europe and Australia," another source said. "Lending banks will only want to consider a pre-pack administration, where there is a pre-arranged buyer, but who would want to buy Game?"

One possible suitor for Game is U.S. retailer GameStop, although any potential deal would have to work around GameStop's lack of interest in Game's Australian operation. Game hasn't commented on the loss of Street Fighter X Tekken and Asura's Wrath, but says its current supply problem is a "temporary situation."

This looks like serious bad news for game.

Gamesnash.ie: Pat · 05-03-2012 8:11pm

chrislad wrote: »

Problem is, and much kudos for the offer, that GAME don't have any of the above. Spoke to a friend who works in a branch and he said they can't get PSN card or MS Points at the moment.

I didn't realise that :eek: - offer stands though in case there is stock in some branches.

Tayla · 05-03-2012 8:16pm

AceCard Jones wrote: »

Then how do online retailers turn a profit? Since they don't take trade ins and sell them again?

Amazon actually do take trade ins but not only from people with UK addresses.

Gamesnash.ie: Pat · 05-03-2012 8:26pm

Notorious/TheEscapist wrote: »

One possible suitor for Game is U.S. retailer GameStop, although any potential deal would have to work around GameStop's lack of interest in Game's Australian operation.

I can't see it happening tbh.

A complete buyout would involve taking over the leases and commitments for the 1000+ stores Game have. If I was Gamestop I'd wait until Game went under completely and then would cherry pick locations / sites that suited to approach individual landlords with. Quick example - Blanch shopping centre had a Game and a Gamestop a few doors away from each other both paying very high rents. Buying Game would put the Blanch operation into a loss straight away.

Deals involving taking over the trading name only would make no sense as Gamestop have no need for the trading name - especially if Game no longer exists.

So the only thing for Gamestop to be afraid of is someone else taking over Game but that's a very very long shot - certainly Gamesnash won't be in the running anyway

Then again Game may completely surprise everyone by pulling through which I suppose is something Gamestop may consider reason enough to buy out now while they are weak. It really comes down to just how bad things are in Game and the truth of the matter is nobody on the outside really knows.

Edit - All of that is a personal opinion I should really have posted from my personal account

Retr0gamer · 05-03-2012 8:32pm

I think Game could also end up going the way of CEX and only dealing in second hand games.

I think the 70 euros a game that is the standard RRP is an absolute joke. If they really care about retail they'd lower the price and not have it up to the retailers to have such agressive price wars. I doubt anyone would spend 70 on game other than a big event game and even then I'd never fork out that much myself.

Notorious · 05-03-2012 8:38pm

Retr0gamer wrote: »

I think the 70 euros a game that is the standard RRP is an absolute joke.

Sometimes my store gets PS2 games traded in with their original price tags on 'em. FIFA was €60 in HMV at one stage! I always wondered who'd pay that much for a PS2 game...

super_furry · 05-03-2012 8:41pm

http://www.eurogamer.net/articles/2012-03-05-game-wont-stock-street-fighter-x-tekken-asuras-wrath

Now Street Fighter x Tekken and Asura's Wrath won't be stocked.

I'd get in tomorrow and use that credit on whatever you can. It really can only be a matter of time for GAME and I'd put money on them being gone by the end of March.

johnny_ultimate · 05-03-2012 8:42pm

Notorious wrote: »

I always wondered who'd pay that much for a PS2 game...

The same reason many people will pay 50/60 euro for a game now. PS1 games were the same, and all the console generations before that. Cutting edge is what fetches high prices.

What's new and sought-after at the moment will not be new and sought-after forever. Only rare games are worth more in later years. Everything else depreciates pretty rapidly.

Retr0gamer · 05-03-2012 9:00pm

The RRP's always start at rip off prices like 60 euros but by 2 years into a generation they always drop to more reasonable 45, maybe 50 if you were pushing it. That's RRP as well. I'm justtalking disc based games because ROM cartridges are always more expensive. 70 just seems excessive especially in the twilight years of this generation.

Gonzo · 05-03-2012 9:09pm

Ive never been a huge fan of the GAME shops but I do have fond memories of when they first setup in Dublin back in the 16bit console era on Grafton Street, that shop was amazing,2 floors of games, huge tv screens, one half of the shop was sega, the other half was nintendo, stocked every game there was back then. There were loads of consoles around where ye could try games out. There was something magical about that shop, then years later they downgraded it to just the 1 floor, the huge tv's were gone and the shop lost alot of it's charm, then it eventually closed and we are left with the scattering of generic looking GAME stores now.

Andy!! · 05-03-2012 10:53pm

Gonzo wrote: »

Ive never been a huge fan of the GAME shops but I do have fond memories of when they first setup in Dublin back in the 16bit console era on Grafton Street, that shop was amazing,2 floors of games, huge tv screens, one half of the shop was sega, the other half was nintendo, stocked every game there was back then. There were loads of consoles around where ye could try games out. There was something magical about that shop, then years later they downgraded it to just the 1 floor, the huge tv's were gone and the shop lost alot of it's charm, then it eventually closed and we are left with the scattering of generic looking GAME stores now.

Haha yes!! N64 on the second floor!

Azure_sky · 05-03-2012 10:56pm

super_furry wrote: »

http://www.eurogamer.net/articles/2012-03-05-game-wont-stock-street-fighter-x-tekken-asuras-wrath

Now Street Fighter x Tekken and Asura's Wrath won't be stocked.

I'd get in tomorrow and use that credit on whatever you can. It really can only be a matter of time for GAME and I'd put money on them being gone by the end of March.

Shocking...if they go under or get taken over then hopefully there will be a massive clear out sale. I'm sick of this digital crap. XBLA/V.C games are fine but not for full retail games. I don't like buying online. The likes of massive corporations such as E.A., Activision and Capcom, and their fan boys are partially to blame for this trend. Sad to see the death of the video game manual too. Even Nintendo are doing it. I was expecting an epic and beautiful manual for Ocarina, Mario 3DS and Mario kart 7. Instead we got little posters for manuals. Eventually we'll have to pay for a proper manual via a "Special edition". Eventually, if this trend continues, the only way to get a full game will be the "special edition" ("DLC, alt costumes and an art book a.k.a. a proper manual.) and the regular edition will be a glorified demo.

Gamers will get fed up with this insane greed and rip off tactics and it could lead to another video game crash, like in 1983. It would serve them right.

Andy!! · 05-03-2012 11:14pm

Azure_sky wrote: »

Shocking...if they go under or get taken over then hopefully there will be a massive clear out sale.

I was in there today and was thinking exactly this. I remember when Zavvi went down and like scumbags they went around and bought all the cheap consoles for resale in the own stores, instead of letting Zavvi customers have them. They sent their staff round to do it as well. So I hope karma comes back to bite them in the ass and we get a few good deals.

Mr E · 05-03-2012 11:21pm

Andy!! wrote: »

I was in there today and was thinking exactly this. I remember when Zavvi went down and like scumbags they went around and bought all the cheap consoles for resale in the own stores, instead of letting Zavvi customers have them. They sent their staff round to do it as well. So I hope karma comes back to bite them in the ass and we get a few good deals.

Please post proof of this.

Andy!! · 05-03-2012 11:24pm

Twas a much discussed topic at the time. Was talked about at length on here too. (it was Zavvi right? Or are they still going in the UK. It was a very similar company in age and name if it wasn't Zavvi.)

And apparently their quite fond of the technique. Haven't found the Zavvi story yet, but here's a more recent one http://www.eurogamer.net/articles/2011-03-29-game-staff-told-to-buy-3ds-from-tesco

RobbingBandit · 05-03-2012 11:46pm

Game staff in Blanchardstown were told to Fcuk Off by Gamestop during their opening they offered a PS3 for €180 to the first 10 customers when two staff members tried to join the queue in their uniforms.

Andy!! · 06-03-2012 12:02am

RobbingBandit wrote: »

Game staff in Blanchardstown were told to Fcuk Off by Gamestop during their opening they offered a PS3 for €180 to the first 10 customers when two staff members tried to join the queue in their uniforms.

Please post proof of this. HD CCTV only and fingerprints from the scene :P

Yeah no apparently this seems to be frequent and scummy practice of GAME and it's managers. Hope we get to deal em some justice with cheap PS Vitas :P

Vadakin · 06-03-2012 5:29am

Many years ago I went into Game in Cork to buy Panzer Dragoon Saga for the Sega Saturn (yeah, I had one...what of it? :P ) and it came on 4 discs. So I go home and open the box and put the first disc in...I start playing...I get through the first disc that day (I once did a complete playthrough of Shenmue in one session so this was not unusual) and I think, will I go to bed or put in disc 2? Screw it, it's only 2AM, disc 2 it is.

So I go to the box and open it and it occurs to me that two discs are missing. At first I'm confused. Maybe I got it wrong...I check the box...nope, 4 discs. But that's OK, I'll go back to Game the next day and get it exchanged for the complete game. So I go back and the staff are pretty friendly. I have my receipt, I have everything from the box...not a problem....so the staff member goes into the back (anyone who's been to the Cork store, this is from way back when the counter was at the back of the store...why is that important? It's not but I've kinda grown up with Game so it's a little sad) and five minutes later he comes back. Nothing in his hand.

For some reason, they only had a few copies of the game (well, it was on the Saturn so limited stock was probably normal in that case) and apparently none of them had all 4 discs. In fact they were surprised when I told them there was meant to be 4 discs. So I got a full refund, didn't feel like buying another game, and I walked around for a bit, trying to see if I could pick up a copy somewhere else.

Panzer Dragoon Saga came out in 1998. Fourteen years ago. I never found another copy of the game and to this day I've never played beyond the first disc.

cloud493 · 06-03-2012 9:47am

Thats almost as bad as Game buying those cheap 360's from sainsburys to sell in their own stores :rolleyes: yeah, massive clear out sale would be awesome. They did a really good pre owned sale after christmas, just do something like that.

NakedNNettles · 06-03-2012 9:56am

The writings been on the wall for quite some time.

Anything that can bought/downloaded online will spell an end to that bricks and mortar retail side of the industry. Games aren't the only thing, music and dvd stores are fighting a losing battle also.

Whats the betting everyone will be talking nostalgically about these kind of stores 10 years from now cause they sure as hell won't exist.

Like they say in the industry.

Game over man, game over!

AnCapaillMor · 06-03-2012 10:03am

Always remember queuing up in the limerick store years ago and over hearing the manager telling one of the employee's that it was not ok to take the game home on a wednesday before release for free, play it, finish it, bring it back in the friday and sell it as new. when i heard the guy say they all do it, i returned the game to the shelf and went to smyths(no gamestop back then, this a while ago). More of an employee thing but it was the last straw for me. I was already pissed at the amount of times i picked up a game on the shelf queued for 10 mins to be told its out of stock and the box shouldn't be out there.

cloud493 · 06-03-2012 10:07am

NakedNNettles wrote: »

The writings been on the wall for quite some time.

Anything that can bought/downloaded online will spell an end to that bricks and mortar retail side of the industry. Games aren't the only thing, music and dvd stores are fighting a losing battle also.

Whats the betting everyone will be talking nostalgically about these kind of stores 10 years from now cause they sure as hell won't exist.

Like they say in the industry.

Game over man, game over!

I dunno. Think there'll always be a place for bricks and mortar distribution. Maybe not shops dedicated to it though. I for one, am not a fan of digital distribution, for example.

Nody · 06-03-2012 10:45am

cloud493 wrote: »

I dunno. Think there'll always be a place for bricks and mortar distribution. Maybe not shops dedicated to it though. I for one, am not a fan of digital distribution, for example.

It will have a place but not as country wide distribution chains of today imo (either they will be dedicated shops for geeks or it will be a Walmart style chain for stocking them).

James Howlett · 06-03-2012 11:07am

NakedNNettles wrote: »

Whats the betting everyone will be talking nostalgically about these kind of stores 10 years from now cause they sure as hell won't exist.

I'll add to that bet that said everyone will include the people currently championing the decline of GAME and other physical shops.

GAME in serious trouble

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