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UK Retailer GAME is dead | Brera's Lament

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Roxas

Member
Brera I'm not sure who your trying to convince here, us or yourself, you will not make a single penny of profit out of your little venture. GAME are done.

Mass Effect 3 and SxT are going to sell huge amounts this month and they desperately needed the revenue from those to help them going. They can't rely on preowned games to keep them going.

Where did you pull the 120m war chest figure from btw?
 
Okay, I know you want your shares to do well, I would if I had shares.

But you're deluding yourself if you honestly think Mass Effect 3 and probably FIFA Street won't be massive sellers. ME3 sold 3000 copies in one hour on ShopTo. 3000 copies of the N7 edition, in one hour, on one website. If we take the lowest value they were selling the N7 edition for (PC, £55) then 3000 copies of that is £165,000. In reality it'll be higher as they were selling the PS3/360 copies for £10 more. Game have lost out on millions by not stocking ME3, that much is obvious.

And where are you getting the figure for this £120 million warchest from? If they really were sitting on £120 million they'd be using some of it to, you know, buy some games so they have stock to sell to their customers.

Seriously a company with £120mil in the bank does not have credit issues, is there a source for this?
 

Linkified

Member
@Brera: I'm finding this £120million figure hard to take, is this what your referring to:

Although currently remaining compliant with its loan covenants, Game noted today that there is an increased chance that it will not meet its EBITDA covenants (fixed charge coverage and leverage) when they are tested on February 27th.

It added however, that given its year-end cash position is set to be around the same as the previous year at £120 million, its debt service covenant should be met satisfactorily.

Source
 

Brera

Banned
The £120 million war chest was heavily mentioned when the profits warnings started flying around end of last year.

£30 million is chump change when you are talking turn over in the billions. They need to get leaner and make savings, they've started by closing down stores.
 

PaulLFC

Member
The £120 million war chest was heavily mentioned when the profits warnings started flying around end of last year.

£30 million is chump change when you are talking turn over in the billions. They need to get leaner and make savings, they've started by closing down stores.
"Chump change" that they evidently don't have. Where is the source for this £120 million figure you keep quoting? I can't see anything in their accounts that isn't cancelled out by liabilities, they ended last year with just over £15 million.

They have "plans" to close down stores but haven't actually done it yet. It's too little too late. If we count both Game and Gamestation, there are FOUR shops just in Liverpool city centre. There is absolutely no need for four shops. At least two of them are practically deserted every time I've seen them, they should have been closed years ago.
 
Anything that helps keep HMV afloat and Gamerbase from not being buggered over is good news for me and most of the rest of the UK fighting game community.
 

no angel

Member
The £120 million war chest was heavily mentioned when the profits warnings started flying around end of last year.

£30 million is chump change when you are talking turn over in the billions. They need to get leaner and make savings, they've started by closing down stores.

This sounds like bullshit, if they had that sort of money readily available they'd be using it for things like buying stock, you know, the sort of stuff you need to keep a business afloat.
 

s_mirage

Member
Assuming they have £120 million, that means that somewhere in the last six months or so they have gained nearly £80 million of cash. If so that would suggest that they have assumed a greater debt load than previously, and if that is the case it is quite possible that they would not be able to cover their debts should they close. Having £X stashed away isn't helpful if they owe > £X. The banks will only put up with the situation for so long before they will refuse to lend any more, and given the worries earlier in the year it seems that they may have been approaching that point before the woes of the last few weeks.

By the way Brera, you seem to be rather vague. Have you even looked at Game's financial reports? Please don't tell me that you didn't exercise any form of dilligence before investing in the company?
 

Bumhead

Banned
If they were a race horse they'd be shot by now.

To be fair, it's absolutely ridiculous that they're failing to sustain stock levels on a week to week basis like this. The "This Week, GAME Won't Be Stocking.." news item is starting to become a weekly occurrence. That's a shambolic indictment on their current state. They're a specialist video games retailer (stocking videogames is ALL they're supposed to do) and yet they're failing to stock new videogames on a week to week basis.
 
This sounds like bullshit, if they had that sort of money readily available they'd be using it for things like buying stock, you know, the sort of stuff you need to keep a business afloat.
Yup. They wouldn't need to be worrying about EA etc providing credit if they could pay for all of this stuff up front.
 
If they were a race horse they'd be shot by now.

To be fair, it's absolutely ridiculous that they're failing to sustain stock levels on a week to week basis like this. The "This Week, GAME Won't Be Stocking.." news item is starting to become a weekly occurrence. That's a shambolic indictment on their current state. They're a specialist video games retailer (stocking videogames is ALL they're supposed to do) and yet they're failing to stock new videogames on a week to week basis.

If they were a race horse, they'd be lying bleeding out on the side of the track going "Dude, I'm fine. Seriously man. Trade in some sugar cubes and I'll be OKAY."
 

123rl

Member
The only reason they're closing some stores now and not lots is because they're on 10 year leases. The stores that are closing soon are all at the end, or near the end, of their lease. Once more leases run up, more stores will close
 

Brera

Banned
My share price is fucked! 4.45p this morning.

If it goes down to 2p, I'm buying another £500! When they bounce back, I'll be make some mega buxx!
 
Wow shits hitting the fan. STXT is a big game.

Didn't you hear? Neither this nor ME3 are huge sellers:

GAME aren't stocking mario party 9, mass effect 3, street fighter vs tekken or asuras wrath.

The games listed are well known but hardly going to massive massive sellers.


My share price is fucked! 4.45p this morning.

If it goes down to 2p, I'm buying another £500! When they bounce back, I'll be make some mega buxx!

You mentioned before you are at 150GBP loss. Even with pennies per share, doesn't seem like you hold much. Enjoy making your 100GBP profit, if ever.
 

Protome

Member
The blockbuster nearest me has a big sign on the door now saying "Preorder Mass Effect 3 here! Releases March 9th, Not Available in Game or Gamestation!"

Gotta take every opportunity you get I suppose.
 

Brera

Banned
Didn't you hear? Neither this nor ME3 are huge sellers:






You mentioned before you are at 150GBP loss. Even with pennies per share, doesn't seem like you hold much. Enjoy making your 100GBP profit, if ever.

I've only got £500 but if they get past this trouble and reach even a £1 again, it'll be worth several thousands of pounds. When they were up to 9p earlier this year I was up about £200 so there is good potential for making money!
 

PaulLFC

Member
My share price is fucked! 4.45p this morning.

If it goes down to 2p, I'm buying another £500! When they bounce back, I'll be make some mega buxx!
It was 4.00 this morning, up to 4.45 now though. Not that that means much, it's up and down most days. I doubt they'll get much above 5p a share unless things drastically improve somehow.
 

Bumhead

Banned
The blockbuster nearest me has a big sign on the door now saying "Preorder Mass Effect 3 here! Releases March 9th, Not Available in Game or Gamestation!"

Gotta take every opportunity you get I suppose.

Yep, same with my local Blockbuster.

Pretty ruthless but like you say, they're entitled to take the chance!
 
Serves them right. Who thought you could keep up a pawn shop mentality on computer games? I love games, but for 99% of the population they have no lasting value. I wonder how much they pay in landfill fees to dump all the old sports titles/ Disney games they've taken for store credit?
 

Moobabe

Member
So I'm just about to leave for work - what bad news should I tell the customers today? I gather from this page that we're not stocking Street fighter vs Tekken?
 

SmokyDave

Member
I've only got £500 but if they get past this trouble and reach even a £1 again, it'll be worth several thousands of pounds. When they were up to 9p earlier this year I was up about £200 so there is good potential for making money!

Seriously, I'm right behind you. I don't like GAME but I kinda hope they rebound back just to see your gamble pay off. The world should reward brave men.
 

Roxas

Member
a new day and no doubt a new publisher will pull out again. Who do we have our money on today? Konami? Microsoft? PLACE YOUR BETS
 

PaulLFC

Member
So I'm just about to leave for work - what bad news should I tell the customers today? I gather from this page that we're not stocking Street fighter vs Tekken?
SFvT and Asura's Wrath. Sorry man :( feel bad for the employees, it annoys me that the reason Game are in this mess is the incompetence of the management yet the managers and directors will be the ones least affected if things do get worse.
 

Moobabe

Member
SFvT and Asura's Wrath. Sorry man :( feel bad for the employees, it annoys me that the reason Game are in this mess is the incompetence of the management yet the managers and directors will be the ones least affected if things do get worse.

The company has been mismanaged for years; we should always have been a specialist retailer - stocking things on order, obscure titles etc - ah well, we're the ones who get the brunt of it from customers.
 
Correct me if I'm wrong, but how is that different from Gamestop? They seem to be doing ok.

I don't know Gamestop very well? but as a UK citizen Game always seemed to push their "tactics" too far. I remember when they offered free returns of up to a week for all titles and that bit them in the arse, and their purchasing of shop space was Starbucks-esque and isn't working out, and weren't there stories about employees buying cheap stock from other stores to sell second hand at Game? that's not a wise decision.

Really, what I meant by pawn-shop style was they copy business practices of others without thinking of the unique qualities that are computer games.

As for gamestop? maybe slightly different percentages of new vs. used and slightly less shops makes all the difference.
 

Brera

Banned
They were down to 3.35p the other month and then bounced back up to 6.5p, ended up making £100 in a quick buy and sell and still got an extra 500 shares for more or less nothing.

Volatile shares = opportunity to make money!
 
They were down to 3.35p the other month and then bounced back up to 6.5p, ended up making £100 in a quick buy and sell and still got an extra 500 shares for more or less nothing.

Volatile shares = opportunity to make money!

Good luck to you but this is reminding me of a more mature version of KentPaul's roulette adventures in the UKgaf thread.
 

PaulLFC

Member
Oh! Are Nintendo titles still getting sold in Game/Gamestation? If not that would surely be the end of them proper.
We're not sure yet. Gamestation had preorder boxes for Luigi's Mansion 2 and Mario Tennis yesterday, but whether they'll actually be selling them or not, nobody knows.
 
I don't know Gamestop very well? but as a UK citizen Game always seemed to push their "tactics" too far. I remember when they offered free returns of up to a week for all titles and that bit them in the arse, and their purchasing of shop space was Starbucks-esque and isn't working out, and weren't there stories about employees buying cheap stock from other stores to sell second hand at Game? that's not a wise decision.

Really, what I meant by pawn-shop style was they copy business practices of others without thinking of the unique qualities that are computer games.

As for gamestop? maybe slightly different percentages of new vs. used and slightly less shops makes all the difference.

The dumbest decision I've ever had to grin and go with in my life. Basically giving games away for free.

When GAME took over Gamestation they were told that Gamestation had to keep its 'identity' for at least 12 months before any rebranding happened. While signs didn't change policy within the stores changed within months to basically become another GAME store.

Prices became the same.
Stock became the same.
Trades in became the same.
Retro gaming and niche target markets went out of the window. I'm sure you all remember the infamous 'I was told to set fire to all retro games' rumour. While I little dramatic it wasn't too far from the truth.

Its a business group that has went from one bad decision to the next over the last decade or so. They treat people badly from customers to their own employees, and wonder why people become 'fed up' of them...

When they moved away from just letting people browse and enjoy their visit to a store, instead of complaining and moaning that they've been on the demo unit for 5 minutes that was enough for me.

APPROACH EVERY CUSTOMER AND GREET THEM WITHIN 30 SECONDS OF ENTERING THE STORE.
ASK IF YOU CAN HELP THEM WITHIN 2 MINUTES OF THEM ENTERING THE STORE.
TELL THEM TO BUY SOMETHING ELSE ON TOP OF WHAT THEY ARE ALREADY BUYING.
UPSELL UPSELL UPSELL
GIVE THEM CRAP

Its not just GAME that follow this idea of retail to be fair, but its horrible - seems even more so horrible for a 'nerd market' like GAME's where the buyer is going generally be clued up.
If you've worked in a store you get to know your customers, you get to know the ones that are happy to just browse and hope to discover something randomly (you asking if you can help only gets in their way). You can tell the ones that are 'out of place' and will probably be grateful for your assistance.
I know they wanted everyone to get the same shopping experience, but customers don't want 'the same' they want to be treated as it suits them.

The idea someone had earlier of having a video store/arcade combine store really interested me. It reminded me of how we used to do it when I worked at Virgin. The games section was sort of just 'left' for me and one other person to look after, while the rest of the store went about pushing DVDs and CDs.
We set up a line of Demo Units so it was like a little arcade. We'd have a new release in one unit, and we'd rotate a back cat game we thought was forgotten about. I'm not saying it turned over a huge amount of money selling that extra 2/3 'forgotten about' game a week, but hey...
Then the XBOX was released and Head Office went crazy and we had to start following their rules and suggestions on POS and Demo Unit games..!
 
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