On Topic: GAME should never have gotten greedy and swallowed up Gamestation; who ever make that decision deserves a huge slap in the face.
Part of GAME's business plan was to buy up all competition. They wanted to be the only game "specialist" in the country, even if that meant they had to own two "competing" chains.
Admittedly, with hindsight it was a stupid move, but it was done in the first year of the Wii boom when many people thought gaming was reaching an expanded audience and that the bubble wouldn't burst. It was nothing but positive for GAME, who had bought out their only major competitor and significantly expanded their retail presence.
This was, of course, before the financial troubles we now see ourselves in, and emergence of iThings, which lured the fickle casual consumer away in droves.
Though admittedly, after my first ever Steam sale I knew that this was the beginning of the end for places like GAME, and that was when I started to anticipate GAME's move into digital. However, all they seem to have done is obstruct it, spread FUD about digital and online shopping in-store (salespeople at the Cardiff branches, at least, are told to tell potential customers that online stores won't deliver hardware and software in time for the release date, so the inflated in-store prices are worth it), and not develop their own UK-based digital download platform.
Quite frankly, I was surprised they never acquired (or tried to acquire) Green Man Gaming, but their current state is pretty telling as to why that never happened. I imagine people high up the chain must've known they were in deep shit long before talk of them going bust was being discussed.