GAME - The end is Nigh???

[Mullered Moose]

But surely when your company get to 40 million in debt alarm bells should of been ringing, then 50, then 60, 70....?

It's true they should have. It seems their idea of a solution was burying their heads in the sand. The thing is any business will struggle if they overstretch themselves. Any profitable stores are offset by the loss makers. Simply put the MD's were greedy fuckers.

[hollywooda]

I think they wanted to keep Gamestation to create the illusion to the average Jo that they were still separate companies, then they'd play a price war game with consumers...
ultimately this failed.

[BuffAngel]

I dont know why they havent been at the forefront of a price war for a while?

Why not get new games and flog em for £35 a pop - undercut the other shops selling them because all Game would sell is Games, its not rocket science, go for volume on products and make sure you are the cheapest store in your area.

When u have a supermarket selling a new game for £5 less than a dedicated game store day one not too mention the online stores, selling in advance of release for less than a dedicated game store then it makes no sense.

Plus where was the diversity and customer service?

Ah well, Nextbox will be d/l games more than retail in all likelihood.

[Bob]

It's obviously not quite as straight forward as that.

Supermarkets, when launching a loss leading £30 or £35 promotion aren't too worried about making money on each game.. They know you'll buy other things while you're in there. That's why the milk is always at the back of supermarket so you have to walk past everything to get it.

GAME have to make money on the games. It's also been more interested in making more money on used games so it's in it's interest to keep the new games at or near the RRP.

[RichL]

Was in the Solihull one today, all the staff laughing and joking sending texts to their mates and generally doing zero work whatsoever.

[Palerider_GB]

Was in the Solihull one today, all the staff laughing and joking sending texts to their mates and generally doing zero work whatsoever.

Business as usual then?

[Dave Shaw]

Although you can understand it from a cold, spreadsheet-oriented approach, it seems odd that the administrators have chosen to shut down stores based upon revenue alone. This has led to several towns and cities offering no store whatsoever, while some still have the two right next door to each other. Surely some sort of calculation could have been done to estimate how profitable being the only specialist retailer in town would be?

[ClownTrousers]

It'll be based off rent. Some rents will be now at. A level where the store cannot feasibly make any money.

[Dave Shaw]

Profit generally, I suppose. I understand most branches within high-profile shopping centres have gone.

Still, surely it'd make more sense to spread stores far and wide, if you've any hope of retaining a business that can be sold as one complete unit, despite small losses made here and there?

Surely any potential purchaser of that business will take observe they've bought a collection of stores ten metres away from each other, and simply shut one of them immediately. Or worse, be trapped in the same long-term lease agreements that presumably stopped GAME Group doing exactly that? Surely the point of administration is to restructure the business into a more sensible, sustainable, shape?

Unless there's no chance of saving it, of course.

[gugly_duk]

It'll be based off rent. Some rents will be now at. A level where the store cannot feasibly make any money.

Yarp, the company my dad works for had a store in the metro centre and the rent was gunna cost them about 1.5% what the store was expected to make.

[nojdanzig]

Well they seem to be safe now - I hope the lessons are actually learned and not just ho-hummed at

[j2000_nr]

I was in Game today, and they are still charging over the odds for most games, they had GOW3 for £43 and a few others that were of a similar price. They need to sort out there pricing structure.

[Johnny Shoulder]

Jeez J2 give the new people a bit of time , they got a shit in a sandstorm to sort out first.

[j2000_nr]

Hold on there JS, I was just making a statement, not attacking the administration process. They do need to sort out there pricing structure, which is one of the reasons why they went belly up.

Spread the love dude

[Johnny Shoulder]

And you've only just realised this?! How long have you been painting the house?