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Game In Trouble? Rumours Abound...


BlinkyBear
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I think that the rapid price dropping of new games MUST be hurting Game, as their pre-owned margins must be falling and losses rising.

Quite often they will trade a secondhand game in for £20 and then stick it out for £34.97, which then doesn't sell because of the stupid price. The game's new price then drops to £29.99 and the pre-owned game stays sat in the pre-owned basket at £34.97. The new game then drops to £19.99 and some bright spark finally changes the price on the pre-owned one to £17.97 or £14.97 and the game might sell...or it might end up eventually selling for £9.97. Making a nice lose of 5 or 10 pounds. Multiply that by many thousands.

One game that dropped very quickly was Outrun 2. This is still in my local Game for £29.97 pre-owned with a marking of 20 on the back, but merely £14.99 new in many shops. So they are going to make a loss on that game.

One of the stores in Plymouth had 10 of those massive pre-owned baskets rammed full of games with more underneath. All bpriced too high and none selling. It's mad.

Someone needs to go into that company and give it a massive kick up the arse.

I saw an interview with the CEO of GAME a couple of weeks ago and he was saying that the margins on pre-owned games far oustrip the margins for new games (I can't remember the exact figures). He also suggested the pre-owned business was doing really well.

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All Tesco got to is

cut down numbers of games to make it easier for customers to shop around.

increase DVDs

add sweets, drinks, crisps, snacks and game magazines / newspaper and then it can make money for selling drinks, crisps and take on Blockbusters.

improve customer service.

Tesco is, um, a supermarket. They already do that, AND their game stock is EXTREMELY limited.

Did you mean Game?

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I'm interested in who this mystery company is who is interested in the GAME group. It would be funny if it were the likes of Virgin or WH Smith.

WH Smith see their future in confectionary and Papers last i was told. They cant muscle in on the entertainment sector, despite massive efforts the last 2/3 years. Virgin need to claw back markey share on CD and DVDs before they start looking to expand, but it will be a viable option for them in the short term.

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WH Smith see their future in confectionary and Papers last i was told. They cant muscle in on the entertainment sector, despite massive efforts the last 2/3 years. Virgin need to claw back markey share on CD and DVDs before they start looking to expand, but it will be a viable option for them in the short term.

Virgin seem to be closing quite a lot of their stores down, I was wondering if they were thinking of pulling out of that side of their business completely. Possibly keeping only a few flagship stores?

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I saw an interview with the CEO of GAME a couple of weeks ago and he was saying that the margins on pre-owned games far oustrip the margins for new games (I can't remember the exact figures). He also suggested the pre-owned business was doing really well.

They are, or at least they potentially are.

The problem is that the quick drop in price of new games means you have to turn your pre-owned around quick to avoid being stung.

When I was a deputy manager at Game our branch was always in the top 5 in the country for pre-owned margin and sales, despite being a smaller store in a smaller city. This was because I made sure we didn't bother with crap like £34.97, instead it was £29.97. This meant the pre-owned was sold through a lot quicker and there was far less chance of losing money on games.

However, almost all stores seem to put their pre-owned out for crazy prices these days, chasing a massive margin. I wouldn't be surprised if the pre-owned side of things was far worse than they like to admit/think.

I could be wrong, though.

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Apparently Meadowhall shopping centre has 2 GAMES within 60 seconds walk of each other.

They're closer than that - I reckon you could amble between the two in less than 30 seconds.

York used to have two branches directly across the road from each other, but I think one's closed now.

I sincerely hope that GAME are losing their high-street monopoly. More indies are needed, IMHO.

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Virgin seem to be closing quite a lot of their stores down, I was wondering if they were thinking of pulling out of that side of their business completely. Possibly keeping only a few flagship stores?

Yeah, Id noticed that a lot of the smaller Virgins had gone. The strategy of only having say 50 massive flagships seems to be one that they are considering. No idea for certain though. Anyone any clues?

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They're closer than that - I reckon you could amble between the two in less than 30 seconds.

York used to have two branches directly across the road from each other, but I think one's closed now.

I sincerely hope that GAME are losing their high-street monopoly. More indies are needed, IMHO.

If GAME gets bought out, it won't signal the rise of the indies, rather a massive all consuming entertainment company that will own the high street.

Its the way of the future, give it 50 to a hundread years and there will be two supermarkets which encompass many different shops in them, for example, TopShop at Asda, HMV in Tesco etc.

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Just a bit of background:

This has been one of the worst ever, if not the absolute worst ever, Christmas trading periods for the high street.

Some people blame on-line retailers, some blame early discounting reducing margins but what is for sure is that this was a bad, bad Christmas for the high street (with a few notable exceptions, Tesco etc.)

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I can walk from one Game to another in my home town (Crawley, West Sussex) in under 30 seconds. To keep 2 identical stores in such a small distance going is just insane.

I heard a rumour that in towns with 2 shops one was going to be just 2nd hand and one just new. That was a while ago - did nothing come of it?

As for the 2nd hand prices - they seem to be getting worse - £37.97 for san andreas last week in my local Game. Fuck me, I picked it up for £24 on day of release in Tesco (did have wifes staff discount though).

I'm sure that Games current business model cannot survive with 2 or more stores in many locations (and what on earth was that tiny one in Allders of Bromley all about. Interestingly they ONLY did new stock - a sign that the rumour I heard was correct perhaps).

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Just a bit of background:

This has been one of the worst ever, if not the absolute worst ever, Christmas trading periods for the high street.

Some people blame on-line retailers, some blame early discounting reducing margins but what is for sure is that this was a bad, bad Christmas for the high street (with a few notable exceptions, Tesco etc.)

Indeed.

Gawd bless the internet!

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I have to agree with that.

For some reason i walk into Virgin and feel like walking out again, while i can browse in HMV for ages.

You feel like walking out because you've nicked a CD.. right?

I am a fan of the HMV, too. There is a certain kudos attached to the HMV name; certainly no shame to be had by carrying an HMV bag around, especially if it is a vinyl sized one. Music savvy HMV.

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Indeed.

Gawd bless the internet!

yep.

Online shopping is finally mainstream now. Cue lots of news articles and stories last december of people not getting what they wanted from XX online retailer due to demand. Then again, thats been happening every year since around 1999.

All the while, the likes of Dixons on the high street have been struggling. Dixons are closing down their Dixons XL shops as theyve flopped hard. I can see why, hugely overpriced goods... even compared to Currys.

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You feel like walking out because you've nicked a CD.. right?

I am a fan of the HMV, too. There is a certain kudos attached to the HMV name; certainly no shame to be had by carrying an HMV bag around, especially if it is a vinyl sized one. Music savvy HMV.

almost didnt recognise you, with that new avatar.

nick a CD... moi? :P

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All the while, the likes of Dixons on the high street have been struggling. Dixons are closing down their Dixons XL shops as theyve flopped hard. I can see why, hugely overpriced goods... even compared to Currys.

But Currys and Dixons (and to a lesser extent, PC World) are part of the same group.

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almost didnt recognise you, with that new avatar.

nick a CD... moi? :P

Indeed, that's probably a good account of your appearance at the time - :lol:.

Bless. What do you look like, anyway? I had you down as the 'chav' type, hence nicking CDs. Go on. I want to see. I fancy a laugh/wank depending on the outcome. :lol:

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I thought everyone knew GAME were struggling. Anyhow a takeover wouldn't surprise me, as there is great potential there.

As for who's interested in acquring them my money would be on either HMV or Dixons although both Gamestop and Electronics Boutique must be interested.

But Electronics Boutique were bought by GAME weren't they?

I wish it was still Future Zone ;)

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