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When my brother first had his Super Nintendo Entertainment System back in 1996, there was really only one place you would think of for buying new games. The internet was relatively new and certainly wasn’t the standard household communications tool it is now. Amazon and Play were still in diapers, and most game-specific stores were by catalogue and advertised through gaming magazines, like the Special Reserve Gaming Network. GAME, better known as Electronics Boutique, had the biggest collection of games for all systems on the high street, and offered great deals as well as the chance to swap some played games for discount against new. But alas, as the credit crunch is moving on into yet another year, headlines are appearing suggesting that Game can’t afford to stock new releases due to their creditors not being able to lend. So is this the end to the troubles for GAME? Is the biggest high street gaming chain seeing the start of things to come?
I’ve always been fond of GAME. Building themselves up by using the Electronics Boutique name until they became big enough to stop paying for the American firm’s name and start running on their own steam. Back in the day if there was ever a game you wanted for PC, Playstation, N64 or the Game Boy Color, Game would always be your first choice. Their well laid out stores had the best selection beating competitors like WH Smith, Currys, Dixons, Comet, Woolworths and everyone else in choice, and pricing. They even had an enjoyment guarantee that would allow you to bring the games back for a full refund or swap for another title if you didn’t like the game, on the condition that the game was returned in a new-sellable condition. If the title you wanted wasn’t in stock they would be able to tell you when it would be coming into store, and even reserve it for you if you wanted to be sure you would get it on returning to them.
However, since around half way through the Xbox/PS2 gaming era, GAME have been showing little signs that uncertainties have been effecting the business. GAME have dropped their price-matching, and their enjoyment guarantee meaning the only way you can return a game (unless clearly faulty) is to trade it in for discount on other games. They started charging for their loyalty reward card, which, when they started doing so, meant you would have to spend £100 on games just to get your money back. Their Debenhams concession stores (of which I used to be a member) have closed. Prices have shot up on games, whether new or pre-owned. And to ensure (though seemingly not guarantee) that you will get a new release on release day, you now have to pay a deposit with your preorder. After the acquisition of their biggest competitor, Gamestation, they have also closed a number of stores and, despite claiming they would treat Gamestation as a seperate business for the customers that liked Gamestation’s way of operating, matched the prices to their GAME stores and introduced a similar loyalty reward scheme.
In my experience as a customer, and a part time staff member in the early noughties, GAME have been weakening through their way of conveyor-belt operating and their price-hikes. Obviously it is GAME’s intention to make money out of their customers. Unless they make a profit they wouldn’t be able to operate. However, they make their staff almost reek of desperation in a bid to secure sales. If you step into a GAME store, you’ll be targetted by atleast one employee almost imediately, or will hear a manager tell a staff member to approach you with what is seemingly a polite, “Are you looking for anything in particular?” As a customer, I immediately feel harassed and often made to feel stupid as either it is a case of ”Yes, I am looking for a particular game, but mainly to see if it is of similar price to gaming websites before I make a decision as to whether I want to buy it. And funnily enough, I know the 3DS section is where all the 3DS games are located…” or “No, I am just browsing”. Rarely when I walk into a GAME store am I going in with the sole intention of buying a product regardless of the price.
Would you like fries with that?
Every purchase is followed by, “Is there anything you want to pre-order?”. To be fair, if there is I would have probably done it via the GAME website, or another competitor’s, for convienience. Quite often if you explain you’re just after what you’ve gone into the store for, or money’s a bit tight, they’ll use what seems to me to be a desperate attempt to get more money into the till: “Well if money is tight, we’re accepting preorder deposits of £10 towards the PS Vita which will only cost you a further £220 at launch in less that a month’s time…” I said money is tight, not that I will suddenly have 5 numbers on the lottery this weekend and will suddenly be able to afford it…
“and if you change your mind you can reclaim your deposit!” Or I could keep my £10, use it to fuel my car, buy some food, pay towards some bills, etc, and then if, when I’m ready, there is a good deal on the PS Vita, I may consider purchasing one from you.
The trouble is, GAME staff are made to feel that they’re not providing a good customer service unless they read the laminated script that they must memorise and read back word for word to each customer. I would consider it more of a customer service is a common sense approach was given by staff to customers. If you see someone browsing the console offers, speak to them like humans. Ask them what their thoughts are and advise them if you can accomodate their needs through an offer. If they’re looking at the chart games, then ask them what they’re after and offer to check if in stock. If you speak to them like humans at the tillpoint, they will often have a chat back which will let you know if they’re after any new releases which you can then advise about preorders and the benefits. The management to staff approach on sales is like ringing through to a foreign call centre. The staff seemingly have to go through a detailed script in a specific order regardless of the responses by the customer before they move on, which proves more frustrating as a customer than helpful.
“Oh, by the way, did you know you can trade games in for discount?”
Whilst trading in games helps you to ‘save’ some money against newer titles, what you’ve got to realise is that for the average console game, you’ll have spent £40 on it if you bought it on release. If, like me, you value your purchases, you’ll have kept them until you’re absolutely sure you’re not going to play them again. By then, the original selling price of the game has gone down so you may get, if you’re lucky, about £8 for the game. So so far you’re down £32. You get your £8 discount off of a new £40 game which means you have to hand over £32 cash to GAME. Therefore your new game has cost you £64. Meanwhile, Game sell your game for atleast 40% more to someone who doesn’t realise, or even care, that the game was sold to GAME for less, and GAME make a nice profit – on both the tradein and the new game.
Whilst the morals of pre-owned gaming are another story, they’re a large part of GAME’s success, especially for the average gamer who plays through a game, gets bored and wants a new experience. Unfortunately, replayability, or lack of, whilst being another subject for discussion, is a reason for gamers to trade in their used games for titles they haven’t yet played, it just goes to show that gaming has evolved from the arcade style addiction gaming to the once-played never again style of gaming the we see in all but a few select titles these days. But it is the pre-owned business that seems to be keeping GAME alive at the moment.
This has been seen by other retailers who have also had to cope with the recent struggles. HMV have been trying to expand on their gaming business through trade-ins as have massive supermarket chain Tesco. However, it is GAME’s biggest competitors that seem to have recently changed their strategies to target GAME’s customers. Online retail is quickly becomming the best choice for customers who can merely google the item they want and be told where they can get it cheapest out of a wide selection of online retailers. Amazon, Play, and even GAME’s online store offer products at a much more reasonable price in comparison to the high street. With fewer staff to pay, the profits, to some degree, can be passed on to the customer. Due to loopholes in tax laws, most online retailers operate from places like Jersey which allow them to make even larger profits. And with online shopping becomming more and more accessible in the broadband age, you would be daft not to consider purchasing or preordering that latest game online. Some online retailers even offer trade-in incentives that make it even more beneficial to shop online.
The Legend of Stock Shortages…
What you should bare in mind is that back in the old days of gaming, stock shortages on new titles were not unusual. Nintendo 64′s The Legend of Zelda: Ocarina of Time was hard to get hold of when it first came out. As were the original Pokémon titles. The importance of pre-ordering big releases seemed more prominent back then. And if you were lucky enough to get a preorder from an online retailer or a catalogue firm like Special Reserve, chances are you would get the game delivered to your door on release, or if you were even luckier, could brag to your mates that you had your copy a day or two before they did. However, these days preorders are normally to allow stores the chance to ensure they have enough stock to order from the suppliers which also ensured over-stocking a potential flop didn’t become an issue for the retailier.
Times have inevitably changed and at the moment I don’t feel that GAME are keeping up with them. They need to start thinking more of the customer, make the high street shop more of a pleasant, rather than an offputting experience. Reduce prices to be a little more competative and even consider re-introducing price-matching (against local retailers) – a policy that forms part of John Lewis’s ever growing success in their field of retail. Offer more value for trade-in, and try selling some stock they already have rather than just focussing on stock they haven’t even got yet.
Are GAME old fashioned? As a high street retailer yes. by reducing their retail incentives and almost forcing their regular customers online, they’re potentially hurting their own trade.
A glimpse through the time vortex…
The future of GAME is inevitably their online business. They already offer better deals through the GAME, Gamestation and Gameplay websites and tghis is obviously through then cost savings of not having to pay for premises, haulage, staff and the obvious bills surrounding them. They’re already making decisions regarding their european expansion and I wouldn’t be suprised if we see more store closures in the UK in the near future. I can’t see them going bust, but unless they consider defeat on the high street, they may be calling in the administrators to attempt to save them in the short term.
I know the subject has caused much controversy on here lately but felt this an appropriate formate to voice my own opinion in an objective manner
This may appear on a google search, but it is 100% my own work and will have originated from my own personal blog-site
*Edit: Title updated 21/3/2012 following recent events
I’ve always been fond of GAME. Building themselves up by using the Electronics Boutique name until they became big enough to stop paying for the American firm’s name and start running on their own steam. Back in the day if there was ever a game you wanted for PC, Playstation, N64 or the Game Boy Color, Game would always be your first choice. Their well laid out stores had the best selection beating competitors like WH Smith, Currys, Dixons, Comet, Woolworths and everyone else in choice, and pricing. They even had an enjoyment guarantee that would allow you to bring the games back for a full refund or swap for another title if you didn’t like the game, on the condition that the game was returned in a new-sellable condition. If the title you wanted wasn’t in stock they would be able to tell you when it would be coming into store, and even reserve it for you if you wanted to be sure you would get it on returning to them.
However, since around half way through the Xbox/PS2 gaming era, GAME have been showing little signs that uncertainties have been effecting the business. GAME have dropped their price-matching, and their enjoyment guarantee meaning the only way you can return a game (unless clearly faulty) is to trade it in for discount on other games. They started charging for their loyalty reward card, which, when they started doing so, meant you would have to spend £100 on games just to get your money back. Their Debenhams concession stores (of which I used to be a member) have closed. Prices have shot up on games, whether new or pre-owned. And to ensure (though seemingly not guarantee) that you will get a new release on release day, you now have to pay a deposit with your preorder. After the acquisition of their biggest competitor, Gamestation, they have also closed a number of stores and, despite claiming they would treat Gamestation as a seperate business for the customers that liked Gamestation’s way of operating, matched the prices to their GAME stores and introduced a similar loyalty reward scheme.
In my experience as a customer, and a part time staff member in the early noughties, GAME have been weakening through their way of conveyor-belt operating and their price-hikes. Obviously it is GAME’s intention to make money out of their customers. Unless they make a profit they wouldn’t be able to operate. However, they make their staff almost reek of desperation in a bid to secure sales. If you step into a GAME store, you’ll be targetted by atleast one employee almost imediately, or will hear a manager tell a staff member to approach you with what is seemingly a polite, “Are you looking for anything in particular?” As a customer, I immediately feel harassed and often made to feel stupid as either it is a case of ”Yes, I am looking for a particular game, but mainly to see if it is of similar price to gaming websites before I make a decision as to whether I want to buy it. And funnily enough, I know the 3DS section is where all the 3DS games are located…” or “No, I am just browsing”. Rarely when I walk into a GAME store am I going in with the sole intention of buying a product regardless of the price.
Would you like fries with that?
Every purchase is followed by, “Is there anything you want to pre-order?”. To be fair, if there is I would have probably done it via the GAME website, or another competitor’s, for convienience. Quite often if you explain you’re just after what you’ve gone into the store for, or money’s a bit tight, they’ll use what seems to me to be a desperate attempt to get more money into the till: “Well if money is tight, we’re accepting preorder deposits of £10 towards the PS Vita which will only cost you a further £220 at launch in less that a month’s time…” I said money is tight, not that I will suddenly have 5 numbers on the lottery this weekend and will suddenly be able to afford it…
“and if you change your mind you can reclaim your deposit!” Or I could keep my £10, use it to fuel my car, buy some food, pay towards some bills, etc, and then if, when I’m ready, there is a good deal on the PS Vita, I may consider purchasing one from you.
The trouble is, GAME staff are made to feel that they’re not providing a good customer service unless they read the laminated script that they must memorise and read back word for word to each customer. I would consider it more of a customer service is a common sense approach was given by staff to customers. If you see someone browsing the console offers, speak to them like humans. Ask them what their thoughts are and advise them if you can accomodate their needs through an offer. If they’re looking at the chart games, then ask them what they’re after and offer to check if in stock. If you speak to them like humans at the tillpoint, they will often have a chat back which will let you know if they’re after any new releases which you can then advise about preorders and the benefits. The management to staff approach on sales is like ringing through to a foreign call centre. The staff seemingly have to go through a detailed script in a specific order regardless of the responses by the customer before they move on, which proves more frustrating as a customer than helpful.
“Oh, by the way, did you know you can trade games in for discount?”
Whilst trading in games helps you to ‘save’ some money against newer titles, what you’ve got to realise is that for the average console game, you’ll have spent £40 on it if you bought it on release. If, like me, you value your purchases, you’ll have kept them until you’re absolutely sure you’re not going to play them again. By then, the original selling price of the game has gone down so you may get, if you’re lucky, about £8 for the game. So so far you’re down £32. You get your £8 discount off of a new £40 game which means you have to hand over £32 cash to GAME. Therefore your new game has cost you £64. Meanwhile, Game sell your game for atleast 40% more to someone who doesn’t realise, or even care, that the game was sold to GAME for less, and GAME make a nice profit – on both the tradein and the new game.
Whilst the morals of pre-owned gaming are another story, they’re a large part of GAME’s success, especially for the average gamer who plays through a game, gets bored and wants a new experience. Unfortunately, replayability, or lack of, whilst being another subject for discussion, is a reason for gamers to trade in their used games for titles they haven’t yet played, it just goes to show that gaming has evolved from the arcade style addiction gaming to the once-played never again style of gaming the we see in all but a few select titles these days. But it is the pre-owned business that seems to be keeping GAME alive at the moment.
This has been seen by other retailers who have also had to cope with the recent struggles. HMV have been trying to expand on their gaming business through trade-ins as have massive supermarket chain Tesco. However, it is GAME’s biggest competitors that seem to have recently changed their strategies to target GAME’s customers. Online retail is quickly becomming the best choice for customers who can merely google the item they want and be told where they can get it cheapest out of a wide selection of online retailers. Amazon, Play, and even GAME’s online store offer products at a much more reasonable price in comparison to the high street. With fewer staff to pay, the profits, to some degree, can be passed on to the customer. Due to loopholes in tax laws, most online retailers operate from places like Jersey which allow them to make even larger profits. And with online shopping becomming more and more accessible in the broadband age, you would be daft not to consider purchasing or preordering that latest game online. Some online retailers even offer trade-in incentives that make it even more beneficial to shop online.
The Legend of Stock Shortages…
What you should bare in mind is that back in the old days of gaming, stock shortages on new titles were not unusual. Nintendo 64′s The Legend of Zelda: Ocarina of Time was hard to get hold of when it first came out. As were the original Pokémon titles. The importance of pre-ordering big releases seemed more prominent back then. And if you were lucky enough to get a preorder from an online retailer or a catalogue firm like Special Reserve, chances are you would get the game delivered to your door on release, or if you were even luckier, could brag to your mates that you had your copy a day or two before they did. However, these days preorders are normally to allow stores the chance to ensure they have enough stock to order from the suppliers which also ensured over-stocking a potential flop didn’t become an issue for the retailier.
Times have inevitably changed and at the moment I don’t feel that GAME are keeping up with them. They need to start thinking more of the customer, make the high street shop more of a pleasant, rather than an offputting experience. Reduce prices to be a little more competative and even consider re-introducing price-matching (against local retailers) – a policy that forms part of John Lewis’s ever growing success in their field of retail. Offer more value for trade-in, and try selling some stock they already have rather than just focussing on stock they haven’t even got yet.
Are GAME old fashioned? As a high street retailer yes. by reducing their retail incentives and almost forcing their regular customers online, they’re potentially hurting their own trade.
A glimpse through the time vortex…
The future of GAME is inevitably their online business. They already offer better deals through the GAME, Gamestation and Gameplay websites and tghis is obviously through then cost savings of not having to pay for premises, haulage, staff and the obvious bills surrounding them. They’re already making decisions regarding their european expansion and I wouldn’t be suprised if we see more store closures in the UK in the near future. I can’t see them going bust, but unless they consider defeat on the high street, they may be calling in the administrators to attempt to save them in the short term.
I know the subject has caused much controversy on here lately but felt this an appropriate formate to voice my own opinion in an objective manner
This may appear on a google search, but it is 100% my own work and will have originated from my own personal blog-site
*Edit: Title updated 21/3/2012 following recent events
Page:
''GAME.co.uk is down for maintenance.''
Oh dear, that doesn't seem good either.
My local Gamestation is still open but it's not looking great TBH. There were a few people in there earlier today but they were all redeeming any credit they had on their reward cards.
Oh dear, that doesn't seem good either.
My local Gamestation is still open but it's not looking great TBH. There were a few people in there earlier today but they were all redeeming any credit they had on their reward cards.
My local GAME store closed it's doors this weekend.
Had to visit father-in-law in hospital again to-day ... so dropped into the local Game first ... extremely busy ... stock clearance sale was heavily advertised for all platforms, but as usual, 'reduced' PC games were 'ancient' and newish releases were still over-priced:¬(
Dr. Garin wrote:
I really cant understand why people keep using revenue as some sort of measure of profitability.
I based my comments on the £18 million loss they made last year, I took that to be a reasonable measure of their lack of profitability.
They need to raise £180 million fast, can't see many investors wanting to take over of an outfit with debts of that size which is operating at such an enormous loss. It doesn't matter how much revenue the industry allegedly produced in that mentioned period, those figures are horrific.
I do feel for the people who work for them though. The staff in my local Gamestation are great, they have mostly the same guys as when the store opened. They are a helpful & personable bunch and haven't done anything wrong personally, it's unfortunately just the way things in that industry have gone.
I really cant understand why people keep using revenue as some sort of measure of profitability.
I based my comments on the £18 million loss they made last year, I took that to be a reasonable measure of their lack of profitability.
They need to raise £180 million fast, can't see many investors wanting to take over of an outfit with debts of that size which is operating at such an enormous loss. It doesn't matter how much revenue the industry allegedly produced in that mentioned period, those figures are horrific.
I do feel for the people who work for them though. The staff in my local Gamestation are great, they have mostly the same guys as when the store opened. They are a helpful & personable bunch and haven't done anything wrong personally, it's unfortunately just the way things in that industry have gone.
I really cant understand why people keep using revenue as some sort of measure of profitability.
Says a lot really
When you can't manage a profit in the biggest entertainment industry of last year, even when you have a technical monopoly on dedicated stores, you're doing something majorly wrong.
When you can't manage a profit in the biggest entertainment industry of last year, even when you have a technical monopoly on dedicated stores, you're doing something majorly wrong.
pete_21 wrote:
It might be time to change the name of this thread to 'GAME: Old Fashioned?, Out Of Business?'
Actioned :)
If GAME close ties with the international stores, close their duplicated stores and reduce their staffing then they should be able to do something to survive.
I was on the right track when I said GAME were old fashioned and out of touch. Supposedly their UK turnover is massive and they should be able to make a large profit if managed better.
From what I read though, their international stores were a drain on their income. If I understand things correctly, its the international business that has put GAME in this position...
To my mind, if a part of the business is clearly not successful, you get rid of it.
GAME need to learn to take action where required and are hopefully going to learn some lessons from their recent mistakes...
It might be time to change the name of this thread to 'GAME: Old Fashioned?, Out Of Business?'
Actioned :)
If GAME close ties with the international stores, close their duplicated stores and reduce their staffing then they should be able to do something to survive.
I was on the right track when I said GAME were old fashioned and out of touch. Supposedly their UK turnover is massive and they should be able to make a large profit if managed better.
From what I read though, their international stores were a drain on their income. If I understand things correctly, its the international business that has put GAME in this position...
To my mind, if a part of the business is clearly not successful, you get rid of it.
GAME need to learn to take action where required and are hopefully going to learn some lessons from their recent mistakes...
It might be time to change the name of this thread to 'GAME: Old Fashioned?, Out Of Business?'
Just had a look through this and it doesn't look good at all TBH.
Quotes like these are worrying to say the very least.
''admitted the business was worthless''
''Game faces a £21m rent payment on Sunday and a £12m wage bill at the end of the month. It also owes more than £10m in VAT and £40m to suppliers. A new investor would also have to pay up to £100m to Game's banks.''
Can't see many buyers wanting to take responsibility for that lot.
I'm hearing rumours that Gamestation are to close their doors on Saturday but I honestly don't know if there is any truth in that.
It's GAME OVER I reckon....
Just had a look through this and it doesn't look good at all TBH.
Quotes like these are worrying to say the very least.
''admitted the business was worthless''
''Game faces a £21m rent payment on Sunday and a £12m wage bill at the end of the month. It also owes more than £10m in VAT and £40m to suppliers. A new investor would also have to pay up to £100m to Game's banks.''
Can't see many buyers wanting to take responsibility for that lot.
I'm hearing rumours that Gamestation are to close their doors on Saturday but I honestly don't know if there is any truth in that.
It's GAME OVER I reckon....
Not quite, they're simply under outside management for now. Big changes and cuts will be coming in the next few days though.
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