NEWS
“We’ve an enviable line-up. If I look at this coming Christmas, I think we have a stronger portfolio than ever.” Microsoft on why 2012 will be Xbox 360’s biggest year ever p20
Indies profit from GAME shortages
Specialist retailers report ‘best weekend of sales’ There’s renewed interest in the indie space, says Game Guide by Dominic Sacco
SMALL UK games retailers are thriving after customers flocked to them to buy Mass Effect 3.
Indie retailers have seen sales spike as GAME fails to stock top new releases such as Street Fighter X Tekken, Mario Party 9and the aforementioned Mass Effect. “We’ve just had our best
weekend of game sales for many years,” Barkman Computers’ owner Nick Elliott told MCV. “Even if GameStop pop up next week, rebrand the stores and make everything OK, we have a new army of local customers who remember we exist.” The Game Guide’s editor Chris Ratcliff, who provides
taking on our systems, which shows there is a renewed confidence in the indie sector.”
Independent retailers have also been able to source Collector’s Editions that GAME would normally sell exclusively. “We managed to pick up
Indies are
reporting a mini- boom on premium games unavailable from GAME.
“ Chris Ratcliff, Game Guide
Indies were able to stock the Mass Effect 3 Collector’s Edition
GAME’s year from hell by Christopher Dring
IT WAS in February last year that GAME announced its bold plans to transform its business.
The new strategy featured in-store mobile technology, a focus on reward cards, click and collect, a revamped website and plans to triple its digital revenues by 2013. But most importantly, it saw GAME secure a £160m three and a half year banking facility. A month later in March, GAME announced it would be running its own
consumer show: GAMEfest. Come April and the first cracks began to show, with the Group posting annual profits (for the year ending January 2011) of £28.5m, down from £88.6m the year before. But GAME was
6 March 16th 2012
confident. “In the longer term, we are putting GAME in the right place to deliver the strongest returns as the industry continues to change and evolve,” said CEO Ian Shepherd.
But conditions got worse, and come June GAME admitted that the market ‘has been more challenging than anticipated’. Between February 1st and June 11th 2011, GAME’s revenue was down 12.8 per cent. However, the retailer was optimistic following good sales of Rockstar’s new IP L.A. Noire. Sadly, things didn’t get
better, and in September GAME announced for the 26 weeks ending July 31st, 2011 sales were down 9.9 per cent and that losses had increased to £48m. But it was ok, because the next
ten weeks – with releases such as Modern Warfare 3, FIFA 12, Forza 4, Arkham City, Skyward Sword, Battlefield 3and more – would help it bounce back. Except it didn’t. And come January, GAME announced that UK sales plunged 17.6 per cent and that it could face lender action. Credit insurers soon pulled support, and the retailer struggled to bring in new games.
GAME’s banks threw the store a lifeline in February with a new, reduced banking facility. But the struggle was far from over. GAME had to get its suppliers on board and get better terms. It held a meeting with its suppliers at BAFTA to explain what was required in order to see the retailer survive.
over 250 stores with an EPOS till system, added: “The indies I’ve spoken to in the last few days have reported a mini-boom by concentrating on the premium games unavailable from GAME last Friday. “In the past two months we have seen an increase in people enquiring about and
200 Mass Effect 3 Collector’s Editions, so we had a busy midnight launch with lots of happy customers,” said Chris Muckell from Xpress Games. “In the short term we’ll have an increase in sales.” Steve Smith from Dailys added: “Stocking up now will pay off later and fill the customers with confidence that there is life after GAME.”
Although early reports suggested the meeting was a success, GAME has failed to win over some big suppliers – namely EA, Nintendo, and most recently, Capcom. The firm has since missed out on
major release Mass Effect 3 and Street Fighter X Tekken. The situation has taken GAME to the brink of collapse. And this month, the firm is seeking a buyer and admits it may have to enter administration.
www.mcvuk.com
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