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UK Retailer GAME is dead | Brera's Lament

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Z

zomgbbqftw

Banned
awanderingsoul said:
The business plan we have recently proposed actually goes away from games and focuses on the Audio and Visual side of our business with games as a smaller but much more focused prescense which I think is the right way to go. We seem to have had more success with suppliers such as EA and Capcom as they are still supplying us on reasonable terms and we are getting Limited Edition stock in reasonable quantities to fulfill all Mass Effect 3 preorders we have taken which should be a great title for us over this weekend.

Just to point out as well we have already reduced our number of stores quite significantly over the past 6 months including the sale of the lease of the oxford street store near topshop to Forever 21 which was a liability of around £10m for just that one site. There are a number of stores aswell where we have 2 to 3 in a small area which closing one wouldn't prove to be of much benefit as the trade does not always move across to the other local stores as you would expect, however we don't quite have the Game and gamestation situation..
Click to expand...

Excellent decision from the management.

I think with Game quickly going down the tubes HMV is in a good place to pick up the slack from passing trade but the future of the company is not in specialist game retailing, that's for sure. The fact that Game do most of their business in passing trade rather than specialist trade is good for HMV too as consumers won't see much difference between the games stocked in HMV than the games they used to see in Game.

The classic example of multiple locations not bringing in extra revenue is Starbucks, but then closing down unnecessary locations loses revenue in the short term is also a problem seen at Starbucks. However, from case studies I have seen revenue tends to bounce back after around 3-4 months once consumers are used to the other locations and alter their shopping habits.

While I wouldn't recommend HMV as an investment today, I could see a point in the future where HMV would be a decent investment. The new focus on technology and AV will be a welcome change and being able to tap into iPad and Android tablet market will be a key win for the company if they achieve it. Another area I would want HMV to look at before grading them as investment worthy is online streaming for music and movies, especially music. How HMV got left behind in that race I will never know, but they should have an App ready for iOS and Android by the end of this year with a cheap offering of a huge catalogue. The best catalogue of music I know of in the streaming arena is Music Unlimited by Sony which stands at 16m tracks, but the front end is complete shit and they have the worst marketing on record. HMV are in a position with their retail locations to sell music streaming services to many, many people as an addition to their core business. If HMV aren't willing to do it, someone else will, the management must think of it more as a move to defend future revenue when the time comes that CD sales become like Vinyl sales and the majority of album purchasing is done online or via a monthly subscription streaming service.
 
A

awanderingsoul

Member
zomgbbqftw said:
Excellent decision from the management.

I think with Game quickly going down the tubes HMV is in a good place to pick up the slack from passing trade but the future of the company is not in specialist game retailing, that's for sure. The fact that Game do most of their business in passing trade rather than specialist trade is good for HMV too as consumers won't see much difference between the games stocked in HMV than the games they used to see in Game.

The classic example of multiple locations not bringing in extra revenue is Starbucks, but then closing down unnecessary locations loses revenue in the short term is also a problem seen at Starbucks. However, from case studies I have seen revenue tends to bounce back after around 3-4 months once consumers are used to the other locations and alter their shopping habits.

While I wouldn't recommend HMV as an investment today, I could see a point in the future where HMV would be a decent investment. The new focus on technology and AV will be a welcome change and being able to tap into iPad and Android tablet market will be a key win for the company if they achieve it. Another area I would want HMV to look at before grading them as investment worthy is online streaming for music and movies, especially music. How HMV got left behind in that race I will never know, but they should have an App ready for iOS and Android by the end of this year with a cheap offering of a huge catalogue. The best catalogue of music I know of in the streaming arena is Music Unlimited by Sony which stands at 16m tracks, but the front end is complete shit and they have the worst marketing on record. HMV are in a position with their retail locations to sell music streaming services to many, many people as an addition to their core business. If HMV aren't willing to do it, someone else will, the management must think of it more as a move to defend future revenue when the time comes that CD sales become like Vinyl sales and the majority of album purchasing is done online or via a monthly subscription streaming service.
Click to expand...

The music and video streaming is a travesty that we got left behind so badly however we do already have partnerships setup with Filmflex for the video streaming, which is currently in a soft launch with a plan to go live on a widescale around April which should hopefully get a push with some exclusive titles that are lined up for the service.

As for audio streaming we actually own a 50% stake in 7 digital which up until last year was the backbone behind Spotify, however we have not taken full advantage of that and quite frankly it is embarassing that we are only now developing the applications and taking advantage of that partnership.

There is a clear plan in place though including the first attempt (I believe) to rival iTunes in combining both audio and visual streaming through one service and application although that will be an uphill struggle but definitely one we need to pursue.
 
J

J Tourettes

Banned
Which Oxford Street store is going, the Bond Street one or the Poland Street one?
It'll be sad to see the Poland Street one go as I used to spend many a Saturday as young teen mooching about in there. It's been there for fucking years as well, never did like the Johnny comelately Bond Street effort.
 
A

awanderingsoul

Member
J Tourettes said:
Which Oxford Street store is going, the Bond Street one or the Poland Street one?
It'll be sad to see the Poland Street one go as I used to spend many a Saturday as young teen mooching about in there. It's been there for fucking years as well, never did like the Johnny comelately Bond Street effort.
Click to expand...

Bond Street one has been closed since last year, Poland Street remains as our flagship store and also houses our Head Office which is located above the store and in the buildings behind.
 
K

killer_clank

Member
Well, I spent the £80 credit I had and got Batman Arkham City, Portal 2 and Gears 3 for £80, so that was alright. I asked about the low stock of SSX, and he said he thinks "there's still some in the company", but not a lot.

At least all the money they owe me is now spent.
 
F

Fur_Q

Member
awanderingsoul said:
The music and video streaming is a travesty that we got left behind so badly however we do already have partnerships setup with Filmflex for the video streaming, which is currently in a soft launch with a plan to go live on a widescale around April which should hopefully get a push with some exclusive titles that are lined up for the service.

As for audio streaming we actually own a 50% stake in 7 digital which up until last year was the backbone behind Spotify, however we have not taken full advantage of that and quite frankly it is embarassing that we are only now developing the applications and taking advantage of that partnership.

There is a clear plan in place though including the first attempt (I believe) to rival iTunes in combining both audio and visual streaming through one service and application although that will be an uphill struggle but definitely one we need to pursue.
Click to expand...

Please stop trying to rival iTunes, they saw a gap years ago and fulfilled it. Seriously I love HMV I love your stores you do great deals and your staff have always been great. But chasing what has already been done isn't going to work, innovate. Partner up with netflix there selection in the UK is dire, do that. You said you have a stake in 7 digital USE IT make smarphone apps allow us to build a repertoire with you allow us to buy from you. If i buy a CD instore give me an option to have a digital version on the go so i don't have to rip it.
 
A

awanderingsoul

Member
Fur_Q said:
Please stop trying to rival iTunes, they saw a gap years ago and fulfilled it. Seriously I love HMV I love your stores you do great deals and your staff have always been great. But chasing what has already been done isn't going to work, innovate. Partner up with netflix there selection in the UK is dire, do that. You said you have a stake in 7 digital USE IT make smarphone apps allow us to build a repertoire with you allow us to buy from you. If i buy a CD instore give me an option to have a digital version on the go so i don't have to rip it.
Click to expand...

As I said we already have a partnership with Filmflex which we are using for our video distribution platform, there is no benefit to a partnership with a giant like Netflix in this situation. They would not want to give up their branding and would not allow an app with a complete hmv front end to use the netflix backbone. However the partnership we have with Filmflex allows us to use a hmv branded frontend on their backbone as well as use our relationships with suppliers to support promotions, offers and exclusives.

We are already in the process of using the 7digital stake for apps and bring that to our customers. The bolded part is also being looked into as well as other alternatives with a similar goal.

But there may also be a service so say for example you could pay £19.99 a month, enjoy unlimited ad-free music streaming as well as the rental of 10 films a month. All from one app and service and not have to require a subscription to netflix, one to spotify, another to lovefilm.. This is what I mean as a rival to iTunes and along with exclusive offers to HMV Pure card holders and using our relationships with suppliers to our advantage we could try to take a decent chunk of a huge market!
 
W

winstano

Member
1

123rl

Member
First game on the list: Star Wars: The Old Republic - £50

Big clearance sale and the first game there has a grand saving of: £0
 
B

Brera

Banned
zomgbbqftw said:
Excellent decision from the management.

I think with Game quickly going down the tubes HMV is in a good place to pick up the slack from passing trade but the future of the company is not in specialist game retailing, that's for sure. The fact that Game do most of their business in passing trade rather than specialist trade is good for HMV too as consumers won't see much difference between the games stocked in HMV than the games they used to see in Game.

The classic example of multiple locations not bringing in extra revenue is Starbucks, but then closing down unnecessary locations loses revenue in the short term is also a problem seen at Starbucks. However, from case studies I have seen revenue tends to bounce back after around 3-4 months once consumers are used to the other locations and alter their shopping habits.

While I wouldn't recommend HMV as an investment today, I could see a point in the future where HMV would be a decent investment. The new focus on technology and AV will be a welcome change and being able to tap into iPad and Android tablet market will be a key win for the company if they achieve it. Another area I would want HMV to look at before grading them as investment worthy is online streaming for music and movies, especially music. How HMV got left behind in that race I will never know, but they should have an App ready for iOS and Android by the end of this year with a cheap offering of a huge catalogue. The best catalogue of music I know of in the streaming arena is Music Unlimited by Sony which stands at 16m tracks, but the front end is complete shit and they have the worst marketing on record. HMV are in a position with their retail locations to sell music streaming services to many, many people as an addition to their core business. If HMV aren't willing to do it, someone else will, the management must think of it more as a move to defend future revenue when the time comes that CD sales become like Vinyl sales and the majority of album purchasing is done online or via a monthly subscription streaming service.
Click to expand...

If you see HMV as an investment in the future then you believe they are going places. On which case why buy at £2 when they are back on top when you can buy for 3p when they're down?

I think you need to learn some lessons from me.
 
L

Linkified

Member
awanderingsoul said:
As I said we already have a partnership with Filmflex which we are using for our video distribution platform, there is no benefit to a partnership with a giant like Netflix in this situation. They would not want to give up their branding and would not allow an app with a complete hmv front end to use the netflix backbone. However the partnership we have with Filmflex allows us to use a hmv branded frontend on their backbone as well as use our relationships with suppliers to support promotions, offers and exclusives.
Click to expand...

Thing is though the market has moved/moving towards unlimited streaming services like Netflix and Lovefilm services. So the question is why not support and strike deals with two main operators in the market for any exclusive content HMV owns.

Plus if HMV don't actually own any libraries of content themselves creating a digital service that you rent content for a period of time entering a marketplace with Zune Video, blinkBox and iTunes seems like a terrible idea.
 
F

Fur_Q

Member
awanderingsoul said:
As I said we already have a partnership with Filmflex which we are using for our video distribution platform, there is no benefit to a partnership with a giant like Netflix in this situation. They would not want to give up their branding and would not allow an app with a complete hmv front end to use the netflix backbone. However the partnership we have with Filmflex allows us to use a hmv branded frontend on their backbone as well as use our relationships with suppliers to support promotions, offers and exclusives.

We are already in the process of using the 7digital stake for apps and bring that to our customers. The bolded part is also being looked into as well as other alternatives with a similar goal.

But there may also be a service so say for example you could pay £19.99 a month, enjoy unlimited ad-free music streaming as well as the rental of 10 films a month. All from one app and service and not have to require a subscription to netflix, one to spotify, another to lovefilm.. This is what I mean as a rival to iTunes and along with exclusive offers to HMV Pure card holders and using our relationships with suppliers to our advantage we could try to take a decent chunk of a huge market!
Click to expand...

Is netflix a huge brand in the UK/Ireland? - HMV is. You would have a huge bargaining position and i don't see netflix blowing up unless their selection improves everyone would try their 1 month free who wouldn't but it would be interesting to see the attach rate. Its a shame they won't let you hook into their library, but your the guy/gal working there and I'm just a punter hope you can steer the ship to brighter shores, as I said before I love what your stores and your service I hope you don't go the way of Zavvi and turn into an online entity.
 
F

Fur_Q

Member
Linkified said:
Thing is though the market has moved/moving towards unlimited streaming services like Netflix and Lovefilm services. So the question is why not support and strike deals with two main operators in the market for any exclusive content HMV owns.

Plus if HMV don't actually own any libraries of content themselves creating a digital service that you rent content for a period of time entering a marketplace with Zune Video, blinkBox and iTunes seems like a terrible idea.
Click to expand...

Bingo
 
I

IdreamofHIME

Member
They're having a total fire sale on their preowned section.

I tried to buy Red Faction Guerilla for £2, it's what was left of my points, and by the time I selected it the thing was already out of stock.

Killzone 2 for 0.50p?

Somethings up today.

JoeTheBlow said:
edit: have checked the site. What a shitty "sale".
Click to expand...

Most of the good stuff was picked clean by hotukdeals hours ago.
 
M

Moobabe

Member
IdreamofHIME said:
They're having a total fire sale on their preowned section.

I tried to buy Red Faction Guerilla for £2, it's what was left of my points, and by the time I selected it the thing was already out of stock.

Killzone 2 for 0.50p?

Somethings up today.
Click to expand...

We had a three for two offer on pre-owned the past few weeks which came off in this week's comm update, which goes live on thursdays. I wouldn't read too much into it.
 
L

Little Old Man

Member
I've read that the 360 firesale begins today instore, and the PS3 one tomorrow.

Someone on Hotdeals claims that any 'new' stock they have left is being opened, discounted by 50%, and put back up on the shelves as preowned.

If true, sounds like the signs of a retailer desperately trying to squeeze a little more cash out to last a few more days. Perhaps they're hoping for a new investor to step in? Some investor it would have to be though, not only in terms of risk, but the amount of cash to sort out the company's debts as pointed out earlier.

I choose you, Brera!
 
J

jonno394

Member
Little Old Man said:
I've read that the 360 firesale begins today instore, and the PS3 one tomorrow.

Someone on Hotdeals claims that any 'new' stock they have left is being opened, discounted by 50%, and put back up on the shelves as preowned.

If true, sounds like the signs of a retailer desperately trying to squeeze a little more cash out to last a few more days. Perhaps they're hoping for a new investor to step in? Some investor it would have to be though, not only in terms of risk, but the amount of cash to sort out the company's debts as pointed out earlier.

I choose you, Brera!
Click to expand...

Lunch break tomorrow, I want me some bargains. Wonder if the 3DS titles will also be reduced...Tales of Abyss was in store for £35 yesterday, if it dropped to around £20 i'd be a happy man.
 
P

Pie and Beans

Look for me on the local news, I'll be the guy arrested for trying to burn down a Nintendo exec's house.
just picked up 800 MS space-bux using my £2.95 rewards to knock it down to like £4, supposed to be straight download but yet to get my email or whatever. Sure hope they dont fuck me!
 
R

Roxas

Member
Psychotext said:
I'll believe it when I see it, but damn, that would be seriously bad news for them.
Click to expand...

zWVTo.jpg


Its fine! Its fine! They are just making room for all the EA, Capcom, Nintendo games that are coming this month. Just watch the shares shoot through the roof after this!
 
B

BGBW

Maturity, bitches.
Guess I'll have to use up that las £7 quicker than I expected. Mum basically gave me a warning after reading about Capcom in todays paper.
 
B

Brera

Banned
GAME are quite clearly having a surprise sale to promote their brand! This must have been the big announcement!

Enjoy! My share price should shoot up!
 
M

Mr. Pointy

Member
Little Old Man said:
If true, sounds like the signs of a retailer desperately trying to squeeze a little more cash out to last a few more days. Perhaps they're hoping for a new investor to step in? Some investor it would have to be though, not only in terms of risk, but the amount of cash to sort out the company's debts as pointed out earlier.

I choose you, Brera!
Click to expand...
With the amount of cash Brera has invested, he'll probably be majority shareholder by the end of next week.
Brera said:
GAME are quite clearly having a surprise sale to promote their brand! This must have been the big announcement!

Enjoy! My share price should shoot up!
Click to expand...
If only I had your optimism.
 
S

ScreenSplitter

Member
Brera said:
GAME are quite clearly having a surprise sale to promote their brand! This must have been the big announcement!

Enjoy! My share price should shoot up!
Click to expand...

C'mon dude now it's just sad.

EDIT: Gamestation are selling Pokemon Diamond/Pearl and Zelda: Phantom Hourglass for £10 and New Super Mario Bros for £15

Lowest price I've seen Nintendo titles in years. In fact I'm struggling to find a DS game over £15.
 
bryanee

bryanee

Member
Just bought a pre-owned Dead or Alive 4 at 44p and £2.54 points that I had, not bad. A game I've wanted to rebuy for awhile for 44p.
 
F

Fare Godmace

Member
Oh boy! This is what I was waiting for!

I hope they also do a firesale here in Spain. I don't even like buying preowned games, but I can't say no to a great deal...
 
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