Gamestation store burst silences the sell-off talk

At its huge Gamesfest sales conference in Newcastle, MD Michael Logue took to the stage to fire up his managers and focus on growth. To wild applause, he announced that a new $20 million investment in the business is on its way.

"With 80 more stores we will go to the next level, adding to the 238 we already have. This is fantastic news, at a very exciting time for the games industry as a whole," he said.

"Our parent company Blockbuster has decided to invest rather divest. It is a huge vote of confidence in everyone at Gamestation. We have a brilliant team, with the best store staff in the business and we’re all hugely motivated."

Gamestation intends to use the investment to put pressure on current market leader GAME,  which held its own conference a week earlier.

Indeed, GAME is planning its own investment in stores, with secret plans for a major overhaul leaking out in MCV last week.

Blockbuster’s decision to look for more stores comes after what it had called a ‘review of non-core assets’.

Clearly, it has decided that the arrival of new hardware systems such as Wii and PS3, plus continued strong performances by Xbox 360 and Nintendo DS, mean that prospects are looking good for the business overall.

Gamestation has been linked to sale rumours for the past year, with US retail giant Gamestop known to have made advances to Blockbuster.

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