NEWS WHAT THE PUBLISHERS SAY:
PETE STONE, UK GENERAL MANAGER, KONAMI “DESPITE the growth of digital delivery, there is still a long way to go with physical games, so we need a presence on our High Streets and I want GAME to survive in some form. I never like to see anyone lose their job. But I also know there are too many GAME and Gamestation stores, and at the very least rationalisation is necessary. Other issues should’ve been
ROD COUSENS, CEO, CODEMASTERS
“THE LOSS of GAME would not be helpful to the perception of the industry. For many, digital starts with a disc, so a retail presence is still needed. While there are great opportunities in social and smart devices, there is also intense competition and aside from rising dev costs, marketing spend is soaring. “For many apps and social
games, they have to be a Top Ten seller to be meaningful. “The platform holders could intervene and convert GAME’s debt to equity. There
DARRYL STILL,
PUBLISHING DIRECTOR, 1C “MY MAIN hope is the shakeup will turn out to be for the good. With the supermarkets stocking the mass market hits, it’s up to whatever specialist game entity that crawls from this wreckage to be exactly that. A specialist that stocks a wide range and supplies knowledge. “The fact that Mass Effect
3did so well, without GAME, proves that type of title is not where specialist games retail should be focusing its efforts. “Look at how Apple stores manage the store experience
www.mcvuk.com
addressed a long time back, such as the in-store experience, depth of range and online competitiveness, which they need to look at if they get past their crisis. Hopefully they can come out of this leaner and stronger.”
LEADER GAME: CHANGING
SOME WILL say that our cover treatment this week is too much, too soon.
But I think we all know that by this point the GAME we knew is pretty much on the way out.
The stores may remain in some way, the brand might even survive an acquisition, but the retail power is fading.
And I safely write that even with a print lead time potentially undermined by a story that moves so fast in front of our eyes on
MCVuk.com. I don’t want to, but it’s hard not to write about GAME in the past tense. Many have asked me: could its problems have been avoided? And others have said to me that, yes, they could have. If only GAME stocked more variety and more PC games (debatable).
If only GAME hadn’t demanded games be held from Steam (never confirmed that it did). If only GAME hadn’t played so hard on margins (a relative topic, if ever there was one).
“If only GAME had listened to us!”
But hindsight’s no good here. Schadenfreude is just vicious. Why didn’t those ‘wise’ voices push harder to warn the firm?
are other initiatives that could be taken if the industry was to collaborate but that has never happened.
“The reality is such that
market forces will prevail and what will be, will be. Hopefully, GAME comes through. I see the market continuing to grow but in a different form.”
(And, by all means, please hurry to share your astounding insight with the other firms currently at the top of their game and primed to fall far should circumstances turn against them.) We all know the problem with GAME’s business was the financials. Nine months of debt balanced out by three months of profit every year is not sustainable as the big hits grew while the rest just fell away. Word is that the Government made it very clear to RBS – GAME’s bank, and owned by HM Treasury, remember – that this retailer must be given as much flexibility as possible. Because the last thing this country needs is another growing void in the High Street and another suffocating vacuum in the trade landscape. Even such highly-placed hopes haven’t helped here.
with expert staff. Leaving the wide range to iTunes. And its stores are always rammed. “My hope is UKIE can help facilitate a solution to support a strong customer base who want knowledge, breadth and support, working with digital suppliers. Therefore they can leave the price wars to those who can cope with it.”
The good news is that many retailers and publishers, as you can see on this spread, are either prepared for the worst or willing to welcome a more specialised specialist.
Challenging times, but at least the industry overall is living to fight another day.
Michael.French@
intentmedia.co.uk March 16th 2012 5
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