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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 as we know it are gone.
The administrators are being appointed.
The administrators are being appointed.
"GAME Group is in a race to secure £180m to pay creditors or face administration, The Sunday Times reports.
The specialist giant apparently has a £21m rent payment due on Sunday, a £12m wage bill due shortly after, and owes more than £10m in deferred VAT and £40m to video game suppliers.
The paper says that GAME could be put into administration this week as lenders believe the firm will not be able to find a backer in time. Any investor, as well as the above mentioned debt, would have to pay the firm's six banks - including Royal Bank of Scotland – £100m."
In reality the banks won't call in their debt yet. They'd rather Game survive and pay it off instead of putting them out of business and getting 55% of the value of the company.
As for the game suppliers, it's not really in their interest to call in debts either. That's not £40million to one company, it's shared between various suppliers and smaller less painful amounts.
The VAT will continue to be deferred if they enter administration, which leaves 33million for rent and staff and that definitely does need to be paid.
I was in both GAME and Gamestation on Saturday and I've never seen them so busy.
The specialist giant apparently has a £21m rent payment due on Sunday, a £12m wage bill due shortly after, and owes more than £10m in deferred VAT and £40m to video game suppliers.
The paper says that GAME could be put into administration this week as lenders believe the firm will not be able to find a backer in time. Any investor, as well as the above mentioned debt, would have to pay the firm's six banks - including Royal Bank of Scotland – £100m."
In reality the banks won't call in their debt yet. They'd rather Game survive and pay it off instead of putting them out of business and getting 55% of the value of the company.
As for the game suppliers, it's not really in their interest to call in debts either. That's not £40million to one company, it's shared between various suppliers and smaller less painful amounts.
The VAT will continue to be deferred if they enter administration, which leaves 33million for rent and staff and that definitely does need to be paid.
I was in both GAME and Gamestation on Saturday and I've never seen them so busy.
According to both Digital Spy and MCV online, game need to raise £180m by next weekend to avoid going into admin.
OpCapita's first offer has been turned down by GAME. Let's hope another offer is on the cards...
Comet are owned by OpCapita, who initially bought it (Comet) for £2 ... bargin ;¬)
Yeah, just read that Comet's owners have actually made a bid to buy GAME. Might be good news but I was under the impression that Comet weren't doing that great themselves?
Well, how a few days change things.
It seems that a couple of companies (Wallmart and OpCapita) are in a bidding war for GAME. Wallmart look in the stronger position, but OpCapita (who own Currys) were first and have put a pretty good offer in.
So perhaps GAME's future is looking a little brighter, especially if they don't go towards administration and the stores get kept much as they are for the short term.
It seems that a couple of companies (Wallmart and OpCapita) are in a bidding war for GAME. Wallmart look in the stronger position, but OpCapita (who own Currys) were first and have put a pretty good offer in.
So perhaps GAME's future is looking a little brighter, especially if they don't go towards administration and the stores get kept much as they are for the short term.
HighflyerVII wrote:
I heard Gamestop was more put off by the Australian market for GAME, as they're already part of it. But I guess it's a difficult market to exploit over here now with cut-throat supermarkets and slash-price internet stores...
As far as the internet it should be the same everyone and it will be once Amazon lose their tax loophole, there's nothing to stop GAME offering the same deals as everyone else online and it would do them good to focus a bit more on that side of things.
In terms of the high street I've always been a bit dubious. I have never seen anyone buy games in Tesco. The range is terrible and the prices don't seem that good. In addition, the games companies would much rather support GAME than the supermarkets.
Again this all comes down to a monopoly that has expanded far beyond what the market can support. You can either sell 10,000 games a week from 1000 stores or you can sell 10,000 (or slightly less) from 500 stores. It seems pretty obvious. I mean for gods sake, GAME brought in £1.6billion last year. How badly managed do you have to be to make a loss on that.
I heard Gamestop was more put off by the Australian market for GAME, as they're already part of it. But I guess it's a difficult market to exploit over here now with cut-throat supermarkets and slash-price internet stores...
As far as the internet it should be the same everyone and it will be once Amazon lose their tax loophole, there's nothing to stop GAME offering the same deals as everyone else online and it would do them good to focus a bit more on that side of things.
In terms of the high street I've always been a bit dubious. I have never seen anyone buy games in Tesco. The range is terrible and the prices don't seem that good. In addition, the games companies would much rather support GAME than the supermarkets.
Again this all comes down to a monopoly that has expanded far beyond what the market can support. You can either sell 10,000 games a week from 1000 stores or you can sell 10,000 (or slightly less) from 500 stores. It seems pretty obvious. I mean for gods sake, GAME brought in £1.6billion last year. How badly managed do you have to be to make a loss on that.
I heard Gamestop was more put off by the Australian market for GAME, as they're already part of it. But I guess it's a difficult market to exploit over here now with cut-throat supermarkets and slash-price internet stores...
pete_21 wrote:
Capcom have announced that the GAME group will not be getting the new Resident Evil game.
Understandable but also hypocritical. There's been universal claims from the games industry that GAME needs to be supported as losing the high street will damage everyone but when push comes shove, its all talk.
GAME wont find a buyer within 9 days & Gamestop are said to not be interested in the UK. Administration it is, which is the best option for them.
Capcom have announced that the GAME group will not be getting the new Resident Evil game.
Understandable but also hypocritical. There's been universal claims from the games industry that GAME needs to be supported as losing the high street will damage everyone but when push comes shove, its all talk.
GAME wont find a buyer within 9 days & Gamestop are said to not be interested in the UK. Administration it is, which is the best option for them.
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