Thursday 29 March 2012

Editorial: Why did GAME fail?!


   This is the picture you're greeted with if you visit GAME's website today, quite a sorry site. But, on the plus side you're reward points are now alive and kicking again!!! 

 Why though has this whole mess happened? How has a company which is pretty much a staple on every major high street across Britain managed to end in a position where its shares are worth £0.01 each and it's had to close down nearly half of it's outlets, just to become more attractive to potential investors? 

   I think we have to go back quite a way to find out the reason for this and it's quite a fundamental issue which will have repercussion further down the line if and when GAME gets bought out (the rumour today is that RBS are interested in the company?!). The issue is that people don't go to GAME any more. And why would they? Your local supermarket will likely sell the newest Call Of Duty or Mario Kart release so why would you want to journey out of your way when you can pick it up nearby at potentially a cheaper price.

   I can remember from personal experience when Call of Duty: Modern Warfare 2 was released Saisnbury's decided to launch it at a lower price of £26, if I remember correctly every one of my friends flocked there with their parents after school because the parents could get shopping and we could get our game. But, even since then the times have changed, a large amount of people pre-order games from the online giants such as Amazon and Play or whoever else is offering the best price on the game.

   Aside from these fundamental changes in the way people shop, there are wider issues with the economy and one of the reasons GAME frequently cited for their issues was that they had had a poor Christmas season and as such they went into the quiet post-Christmas season, quiet for game released and sales, in bad shape. This is not an issue just affecting GAME, everyone is feeling the effects of the times and in for a Computer games retailer in such a niche and arguably a luxury market, GAME is always likely to feel the affects more than other sorts of retailers.

   The last issue is that GAME has repeatedly stated that publishers have been very unwilling to negotiate more reasonable prices with them for new titles. This is the most important part of their industry and if they are having long-term issues with supply then only new ownership will be able to assist with this issue.

   The rumour today is that RBS is considering buying out the ailing company, but again this gives me very little hope for the future because  I believe GAME is not is a good position for the future. They have only one source of revenue, from one market and I for one do not think the company can go anywhere. I genuinely hope I'm wrong because there are real people who work at GAME who could potentially lose their jobs in the future and British high streets will lose another iconic brand, but as long as there are people in the world, there is hope!


Twitter Delicious Facebook Digg Stumbleupon Favorites More