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Industry rallies around troubled GAME

Christopher Dring
Industry rallies around troubled GAME

The UK games trade has backed GAME to overcome its 'nightmare' start to the year.

Publishing execs have lined-up to offer vocal support to the retailer, after working around the clock to get stock into stores. GAME lost credit insurance, which meant the firm had to do deals with suppliers just to fill the shelves. One industry veteran said the period was 'like EUK all over again.'

Mastertronic's Andy Payne, Codemasters' Rod Cousens, Rising Star's Martin Defries, Xbox' Jonathan Grimes, Square Enix' Doug Bone and Konami's Peter Stone have all told MCV that if GAME collapses it "would be a massive loss to this industry."

The retailer says it has been left 'humbled' by the support shown from its suppliers.

The troubled High Street chain is in the process of selling off its international business and cutting 46 jobs from its head office as it comes to terms with a disastrous festive sales period.

New trading terms mean power may be shifting away from the market-leading retail specialist, but publishers say the UK sector must pull together to ensure GAME – as well as fellow struggler HMV – survive.

GAME hopes it has wethered the worst of the storm, now it has secured a new agreement with its lenders and announced it will meet its banking covenant tests. Its share price has risen on the news.


What the industry says:

Rod Cousens,
CEO,
Codemasters

"GAME is an integral part of the gaming industry in the UK and Europe. It’s a case of ‘GAME – your industry needs you right now.' This is a situation where all parties can work together to come up with a sustainable business model, which everyone can live with and which is progressive to target digital opportunities. A streamlined network of ‘destination centres’ for packaged goods and digital delivery which took its lead from Apple stores is just  a thought. The industry needs to evolve and move on and GAME could be in its midst."
 

Doug Bone,
UK General Manager
Square Enix Europe
"It’s no secret that the market is enduring a challenging transition at the moment, so it’s important that we listen to our customers and work with them to ensure that trading doesn’t suffer. GAME is a key partner for us and we will continue to work with it and have stayed in close contact in the build-up to the launch of Final Fantasy XIII-2."

 

Jonathan Grimes,
Director of retail sales and marketing
Xbox
"We remain fully committed to our retail partners and recognise the huge importance that specialist retailers have to our industry."


Peter Stone,
UK General Manager,
Konami
"It’s our opinion that the video games industry is stronger if we have one or more specialist retailers. Therefore we see the survival of GAME and HMV to be important to us. We have worked hard with both retailers in the past few weeks to ensure they are able to stock our new titles."


Martin Defries,
Managing Director
Rising Star Games
"Although Rising Star Games is a undoubtedly a small supplier to GAME, I believe it is critical that our support joins that of its more significant ones.
"GAME is key to this business across the UK and Europe in driving sales to consumers both new and old, in putting our work in front of others via its retail mechanism; without it, it’s an even tougher landscape within which to operate. Where we can, where it might help, where it might make a difference, I’m happy to step up and assist."

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Comments

4 comments

It is a complete crime that these exec's have not come out and expressed their support for Independent Video Game (Specialist) Retailers.

Peter Stone,
UK General Manager,
Konami
"It’s our opinion that the video games industry is stronger if we have one or more specialist retailers "

As long as they are not Indies

i do not hear any support from anyone in the Games Industry for EXISTING Indies or those of us who have Now "CLOSED"

They are very quick to Support Game & HMV who potentially are only in business because of the Pre-Owned and Trade-in deals they offer. But will not support any Indie because we are deemed as SCUM because we deal In Pre-Owned and Trade-Ins.

As far as I am concerned these EXEC's are now shitting themselves because as we all know they have DRIVEN Indies out of business and If GAME and HMV fold they will only have the SUPERMARKETS left to sell their games

THIS SCENARIO WAS PREDICT BY THE WHOLE OF OUR INDUSTRY 3 YEARS AGO.

If Game and HMV fold so be it I genuinely feel for their hard working staff but SO BE IT !!!!!!!!!!!!!

No Publisher, Distributor or Developer gave me preferred treatment when my Business Had to close

Simon Gough

Simon Gough INDUSTRY
Feb 9th 2012 at 3:14PM

0 1

I have to agree with you , distribution / publishers exec's support the whole industry !

Michael Pearce

Michael Pearce INDUSTRY
Feb 9th 2012 at 5:19PM

0 0

Simple really suppliers either take a credit risk and support Game with the hope that they will get paid eventually. Or take the hit today and cast Game adrift. Strong messages of support from publishers but remember they have a financial interest in Game's survival.
Privately they must regret handing the market to Game then getting screwed to the floor once the independents had been squeezed out of business.

Expect to see more sales reps turning up from publishers handing out teeshirts and proclaiming that they have always support for indies.

Detekat

Derek Tidman

Derek Tidman INDUSTRY
Feb 9th 2012 at 9:16PM

0 0

I'll be quick to remind some of GAME's supporters of this when GAME, should they pull through, go back to pushing pre-owned over new stock.

Unless GAME pull the plug on their failing business strategy then they're only delaying the inevitable.

Joseph Brown

Joseph Brown INDUSTRY
Feb 9th 2012 at 9:56PM

0 0