Game could shut down to avoid more losses

[MatParker116]

http://www.express.co.uk/money/view/305980/Bosses-may-pull-the-plug-on-Game

THE FUTURE of embattled retailer Game Group is in doubt as its directors are considering whether to ?pull the plug? after Electronic Arts and Nintendo stopped doing business with it.

Game, which operates 610 stores and employs 5,800 in the UK, was dealt a crippling blow last week when it failed to strike supply agreements with the video games publishers.

Game will now be left without crucial titles including Mass Effect 3, which is expected to be one of the biggest selling titles of 2012.

A source close to the situation said: ?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.


Nick Hood of Company Watch, the corporate health monitoring specialist

?They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses.?

Only last month Game struck a deal to relax its debt covenants with its syndicate of lenders led by Royal Bank of Scotland. However, sources close to the State-owned bank believe that its patience with the retailer is running out.

?The immediate response from RBS will be to push for more store closures, but the tipping point for the directors and the lending banks will come when the stores don?t have products to sell,? said an industry source.

?This could happen if more suppliers follow suit.?

Another source added: ?RBS will be looking for the best way to secure its position or improve it.

?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.

?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?? RBS declined to comment.

The discord with Electronic Arts and Nintendo over ?credit terms? may also see Game miss out on other popular titles such as Mario Party 9.

Game has announced plans to close 60 stores and the firm may also look to offload its international operations.

Nick Hood of Company Watch, the corporate health monitoring specialist, said: ?The appeal of Game is now limited further. Customers will desert Game if more suppliers pull out.?

Game said that its supply problem is a ?temporary situation? but declined to comment further.

Basically they could pull the trigger themselves rather than wait for there creditors to do it. This would cost about 6,000 jobs and do serious harm to games industry in this country. Save us Gamestop.

 

[Seraj]

Well, its a shame about the jobs lost and all that. But I cannot wait for them to drown.


What I predict ( not that anyone cares, I am forcing my views upon you ) is that Game will not just close down, it will most likely be bought by Gamestop or some other huge company. These companies are probably waiting to see how things will turn out before registering their interest with Game.

The deeper the hole Game digs, the cheaper it will become, bit stupid to buy Game out when its on the edge of the abyss.

 

[Norks]

Hells no we don't want Gamestop in this country. I'd rather deal with the rubbish waiting period that comes with ordering off Amazon than shop at gamestop.

 

[krazykidd]

Anyone else worries that this is the first step to digital download only and no more physical copies of games? Because if so my days as a gamer are numbered . Also if i was working for GAME i'd quit right now as a preemptive move.

 

[Fappy]

Too bad game retailers and publishers hate each other so much. This would probably never have happened if they had a real mutual, no-strings attached relationship like comic book publishers and comic shops.

 

[dimensional]

Anyone else worries that this is the first step to digital download only and no more physical copies of games? Because if so my days as a gamer are numbered . Also if i was working for GAME i'd quit right now as a preemptive move.

Doubt it people will just buy hard copies online like most seem to be doing now anyway as I dont think the infrastructure is their for DDL only yet and it will be quite a way off. I could be wrong of course and if it does all go DDL I will unfortunately be giving up most of my gaming as well (DDL takes me a long long time + I dont like it).

As for GAME well lets see they dont really stock many PC or PSP titles they dont have any old games (SNES and before) or many of the last gen games now they cant get EA games or Nintendos games which leaves what a few titles for PS3 and the 360 at premium prices yeah not much of a game shop really, good riddance I say they lost the plot years ago.

If I was them I would pull the plug and try and force a sale its a gamble but they are going to lose everything anyway by the look of it.

EDIT: lol well arent you popular krazykidd 3 quotes in as many posts.

 

[Limecake]

Anyone else worries that this is the first step to digital download only and no more physical copies of games? Because if so my days as a gamer are numbered . Also if i was working for GAME i'd quit right now as a preemptive move.

I'm far from worried, I'd fully support a full digital distribution model. Physical copies of games are like the gold standard, it's there for peace of mind but at the end of the day it's really not important.

My only issue is that almost all digital distributors (excluding Steam) don't understand that when we pay $60 for a brand new game we're also paying for shipping, packaging, store commission etc. If we were to buy the same game online the only thing we should be paying for (other than the game) is bandwidth.

It blows my mind things how services like Origin can still charge full price for a digital copy of the game. 'Games On Demand' is also guilty of this for Xbox, but they have the added insult of not carrying any new games.

OT: I couldn't care less about GAME, This happened to the blockbuster franchise when netflix started becoming popular (and piracy!) it's what happens in a capitalist system. Just sit back and wait for them to liquidate their stock.

 

[Esotera]

Anyone else worries that this is the first step to digital download only and no more physical copies of games? Because if so my days as a gamer are numbered . Also if i was working for GAME i'd quit right now as a preemptive move.

so when all of society has become this way (music already is, films are catching right up) your just going to not consume.

Stop having a paddy.

OT goodbye and good riddance.

The problem is more that the customer does not own these digital copies. They are licensed to us. They can be taken away without any good reason (this is rare, but has happened). Essentially the game isn't yours. Of course, digital distribution has advantages, but the way it's currently being implemented makes me and a lot of other people nervous.

OT: I give them two weeks tops before they all close down. It just isn't sustainable when you don't even have credit to buy your product.

 

[krazykidd]

Anyone else worries that this is the first step to digital download only and no more physical copies of games? Because if so my days as a gamer are numbered . Also if i was working for GAME i'd quit right now as a preemptive move.

so when all of society has become this way (music already is, films are catching right up) your just going to not consume.

Stop having a paddy.

OT goodbye and good riddance.

Yes? I don't download music ( hell i don't even listen to music anymore ) when cds started going out of style and cd players became a past fad , i stoped listening to music . I don't even buy dvds, i go to the movies . So yes , when games become digital download only , i will stop buying new games , i will however buy oldgames thats still have physical copies .

Is it such a bad thing to want a physical copy of something i bought? At least i can say it is mine and not have companies say bullsht like , you are only renting the rights to play the game.