Reports are coming in that UK high street videogame retailer GAME is suffering financial problems leading to it struggling to stock certain games as it works individually with publishers.
It’s not been a great few weeks for UK videogame retailer GAME – and things look as if they are about to get a whole lot bleaker, with reports that the company’s financial situation sees it struggling for credit, and suggestions that this means it will be unable to stock certain games.
Initial reports this morning suggested that the chain might not be able to stock this Friday’s big releases, including Metal Gear Solid: HD Collection, Final Fantasy XIII-2 and Soul Calibur V, but MCV’s Ben Parfitt has information that those games are in fact being processed at the moment (although Eurogamer readers have noted that MGS: HD Collection is not available for purchase on the company’s website – they also noted that Mass Effect 3 pre-orders are being turned away).
MCV was able to confirm however that GAME are facing “challenges regarding its credit insurance and that its financial landscape has changed significantly since the beginning of the year.”
The upshot of this is that the retailer is having to negotiate on a publisher-by-publisher basis to stock new titles and that without a credit line with these publishers GAME would be required to pay cash for stock upfront, an untenable situation for the company: “No credit from the agencies means no stock for the stores. It’s going to get worse before it gets better,” an anonymous source told MCV.
Rumours were also circulating that GAME staff would have wages withheld, but the MCV report dismisses these.
All in all, it’s a worrying state of affairs for the preeminent videogame high street retailer – it also owns the GameStation chain – and with HMV also having troubles, it appears the era of internet shopping and supermarket loss leaders are really beginning to take a toll on the traditional videogame outlets.
We’ll keep you updated on any further developments on this story as they happen.
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It seems like every time I go into GAME, which isn’t often these days, the displays are bigger and have fewer games on them.
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Volente (February 1st, 2012)
My younger brother went to pick up his pre-order of FF XIII-2 yesterday and they didn’t have any in stock at our local GAME store.
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Emily King (February 4th, 2012)
Same thing happened to my mate with Fallout New Vegas, are pre-orders only about bonuses now?
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megamoppy (February 6th, 2012)