Things seem to be going from bad to worse for the GAME Group owners of the GAME & Gamestation franchise worldwide; at the start of the year it was reported that Game was facing some credit and stock issues then it was reported that in an effort to save money the GAME Group was reviewing it’s overseas business. This action was apparently enough at the time to ease the concerns of its creditots as they issued a press release on the 3rd of February stating they had “agreed revised terms for its facilities.” This news was followed by the release of roughly 10% staff at the GAME group headquarters a few days later.
So agreements had been made, costs had been cut, it seemed that GAME were on the road to recovery and then EA pulled the plug on new releases, this meant that GAME who had been the UK exclusive retailer for the Mass Effect 3 Collectors Edition would not only not honor pre-orders for the title but wouldn’t stock it all. Mass Effect 3 wasn’t the only EA game taken from shelves with Tiger Woods PGA Tour13, Fifa Street and The Sims 3 Showtime all going elsewhere. EA wasn’t the first company to pull stock from GAME as several Ubisoft PS Vita title were withheld until a later date, nor is it the last with news today the GAME will not be stocking Capcom big hitters Street Fighter X Tekken & Asura’s Wrath.
Elsewhere a report from the Daily Express suggests that not only may GAME stop trading soon but that company directors are actively discussing it. A source close to the situation has been quoted as saying:
“They are in discussions with their legal advisers about whether to shut up shop rather than rack up more losses.”
The source continued:
“Lending banks will only want to consider a pre-pack administration, where there is a pre-arranged buyer, but who would want to buy Game?”
This last statement lends credence to the claim that GameStop are considering purchasing the struggling UK retailer and have been preparing themselves to do so for some time(this article from the Guardian was written back in July 2011 when shares in GAME where approximately 5 times higher than they are now)