GAME Enters Administration
GAME, the UK’s largest video game retailers, have announced plans to enter administration, this comes after suspending the trading of their shares on the London Stock Exchange.
The past few months have been tough on the company, which recently were unable to stoke the game Mass Effect 3, meaning they could not fulfil the prepay orders for the game. However, the problem goes back further than that. Sales have been declining for years, not just in GAME, but other video game retailers too, GameStop went through a similar situation in the US. Why is the number of annual sales falling? It is in part due to the large number of cheaper online alternatives. People can by games from websites and at lower prices.
If you’re buying a game for yourself, there is really no problem going online and finding it as cheap as you can, but if someone that isn’t familiar with games, maybe a parent, wants to buy a game for someone else, then having a place with actually staff that can help is a necessity. There is a market, a niche market, but still a market. Also, having a shop allows for browsing the shelves and finding games you didn’t even know existed. Finds like that aren’t as easy when you have to type in keywords to find a product.
Though it has been questioned recently whether console games will even survive or if they will be destroyed by online games, I think it’s fair to say that this isn’t going to happen anytime soon, but if game shops begin to shut down the possibility becomes a lot more realistic. Despite their announcement, GAME will not be closing all its stores, at least not yet. Some will inevitably close, but hopefully, and this has happened with companies in the past, GAME will manage to survive administration and continue trading.
What do you think? Do you shop in GAME? How would you feel if they closed down stores near you? When were you last in a GAME store? Let me know by voting and leaving a comment below. Also, if you like this post, please follow and click the like button.