GAME has been thrown a lifeline by its banks that will enable the retailer to continue trading.
Poor Christmas sales also left it facing the possibility of breaching banking covenants relating to debt levels and the £80 million annual rent bill on its 1,274 stores worldwide.
However, GAME's RBS-led lending syndicate yesterday agreed to revise the firm's banking covenants, but it is still insisting the retailer explores selling its overseas stores, according to the Financial Times.
"The group has agreed to operate within lower limits of its existing facilities than was previously available," GAME said in a statement. "These revised facilities will allow the company to continue to trade."
CEO Ian Shepherd added: "We're pleased to reach agreement with our lenders but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan."
GAME expects to report a loss of £18 million for the year to January 31, which is better than the £30 million forecast following a profit warning issued in January.
Comments
45 comments so far...
Gambini on 3 Feb '12 said:
The same banks that caused the worlds biggest recession in history due to bad lending policies? Riiiiigggghhhttt.....
Heads up lads, GAME will soon be owned by us tax payers
dicky1993 on 3 Feb '12 said:
i hope they lower prices now would be cool to see their new business plan
Imdanshort1 on 3 Feb '12 said:
GAME'S new business plan....MW3 - £80
metallicorphan on 3 Feb '12 said:
I do use GAME a lot,so glad about this..there are no other game shops near me except GAME and HMV
Gambini on 3 Feb '12 said:
No internet in your town??
KK-Headcharge78 on 3 Feb '12 said:
Bryanee1983 on 3 Feb '12 said:
I still see no reason atall to shop at Game unless you trade in alot. Online shopping for games is far better, you get them quicker and cheaper with a bigger amount of games to choose from.
I used to pop into both Game and Gamestation all the time when I went into town but now I skip them completely as I just dont see the point.
l1nc on 3 Feb '12 said:
We have only had a Game shop for 18months it would be a right shame for it to close already. Online stores are ok but have no way of a trade-in facility.
Agent75 on 3 Feb '12 said:
You get these plebs who shop at the likes of GAME and HMV, they pay comical prices, buy games at launch, buy special or collector editions. GAME will never be cheap, they're even dear online. Now they've loaned more money, they can't afford to discount. But even if they could afford to discount, they wouldn't do it because they rely on plebs to keep them in buisness. But I'm convinced that they will go to the wall soon. I ditched stores in 2000 when the Dreamcast was on the go, 12 years on, I've never looked back.
Agent75 on 3 Feb '12 said:
And you get a free poster....
tsazio on 3 Feb '12 said:
Computer Exchange???
PS3UberTool on 3 Feb '12 said:
I'd use them... if they didn't over charge for everything.
They don't even offer decent trade in prices either... I'd sooner take my chances selling my old stuff on Ebay.
Demigod001 on 3 Feb '12 said:
I use Game to get games when I want a physical copy mainly collectors editions which for the most part they seem have a lock on in the uk. I hope this fiasco shows the folly of this to publishers. Having just one retail company for CE's may give them a larger cut but it could have cost them a lot.
Ive had a pre order for Mass effect 3 CE with them since it became available. I would miss them if they went under, but their business plan of games and gaming hardware only isn't one that can survive. They need to diversify. Open net cafe's in some of their larger stores. Offer comics books and gameing related colectables. In its simplest form they are toy shop that sells only three types of toy, they need to do more.
For their on-line store why not offer to price match play and amazon? Move the on line distribution down to the isle of man like amazon if they need to to do it. The £2-10 premium Game charges on-line compared to others is killing them in that space.
They cant just say we sell games that and is it, they need to innovate.
feeg86 on 3 Feb '12 said:
Just this morning I went in to Game to trade some old PS3 games (5 in total, including Fifa 12) for MGS HD and they would give me 20 odd quid for all of them, so I had to pay an additional tenner. No chance.
Went to HMV and gave me 45 quid for them, so I got the game and a voucher.
Say what you like about HMV (mostly justified regarding their prices) but they do a bloody good trade in. I wouldn't have got the amount I did through ebay.
TheLastDodo on 3 Feb '12 said:
Game are really going to need it.
Popped into town today for MGS HD.
HMV - Sold out on PS3 & 360
Gamestation - Sold out on PS3 & 360
ASDA - Empty shelves, luckily had three PS3 copies behind counter (360 sold out), I bought @ £ 27.96
GAME - Full shelves for both PS3 & 360, selling at £34.99.
Reasons? HMV & Gamestation offer best trade in value in my town while ASDA were the cheapest.
GAME have got to change something.
The_Hun1 on 3 Feb '12 said:
As much as i don't like game, due to the high prices, s**t service, poor advice, crap offers, they do do something for my hobby, get people who don't know anything to buy games (parents i'm looking at you).
If game are to survive, they need to realise when it comes to new games, supermarkets will be cheaper and will do (for now) offers, like 10 pound off, when you spend such and such, so they need to structure their offers in the same way i.e. buy this game and get this one for ££££ or 2 new games for 60 something to drive people back into their shops, otherwise they will die and game players might have to pay more in the end for new titles due to less competition in the high street, specially if hmv continue to struggle as they have done.
If game and hmv were to suddenly go out of business do you think supermarkets would have to be lower? no they wouldn't and before you say internet, internet, yes we know about and we do buy from there, but the vast majority of people still don't, so gaming might go for a mainstream hobby to a geek pleasure again, like it was before PS, that would be a very bad thing, the games today are much better than they were.
Game, buck up your ideas or go the way of the dodo, you have been warned, also your online store is s**t, not just s**t but mega s**t, it's online so should be cheaper the retail, but it ain't, why you not paying store rents, you have a warehouse and send them via post. Online look at amazon, play etc
get it right or die
simples
ensabahnur on 3 Feb '12 said:
Blockbuster Video? Ok they may be on the wane as well but i'd say there more chance of them keeping a few stores open.
The Bossman on 3 Feb '12 said:
If you want immediate games, as in ordering the night before and getting it the next day free delivery, create a whole load of e-mail addresses, at least 50, then sign up on amazon and sign up for 1 months trial of amazon prime. I'm now on my 2nd trial with a 2nd account, giving free next day delivery on a huge range of items. I chose not to renew my prime sub as well so when it runs out I'll make another account and do it again. Ordered the MGS HD collection for about 27.90 so will get that tomorrow.
ensabahnur on 3 Feb '12 said:
That is just shocking. I could understand it being £29.99, i think most people would but to be selling it for another fiver on top of that just shows why they're in the predicament they're in.
feeg86 on 3 Feb '12 said:
Touching on s**te websites, Gamestation's website is atrocious.
rbt2 on 3 Feb '12 said:
I don't think it matters what new strategy Game has now. The rot has set in.
They can't compete with the likes of Amazon, shopto etc; and the fact that a ps3 pad I needed as a replacement for a broken one late last year that Game wanted 53 quid for, with the manager trying to tell me the price was fully justified due to the Japanese earthquake, and that many had been sold at the price over that previous weekend, finished any association I had with Game.
They're finished.
El Mag on 3 Feb '12 said:
Argos have bumped their PS3 pads up to 48 quid as well I noticed recently. Thought b*****ks to it and bought some masking tape to fix my busted one, it's almost good as new!
Probably should have got black tape instead of white though, so it blended in better.
ensabahnur on 3 Feb '12 said:
That's almost robbery!! I think i'd be getting the glue out before spunking that amount of money. How can either Game or Argos blame the price hike on the troubles in Japan when Play/Amazon/Shopto can still sell them for £35 as can Tesco?
http://www.play.com/Games/PlayStation3/4-/5258216/Sony-PS3-DualShock-3-Wireless-Controller-Black/Product.html?searchtype=allproducts&searchsource=0&searchstring=dualshock+3&urlrefer=search
http://direct.tesco.com/q/R.200-3139.aspx
alan666 on 3 Feb '12 said:
erm, i buy games on release & i like to buy some special or collector editions like Forza, GTA, GT5 & LBP2 etc.
i have been gaming for 30 years, i ain't no dam pleb !
i hope that some people at GAME maybe look at places like this here & maybe take some of the comments on board, one thing that has really damaged them though is the upgraded they did to their online store, that was disastrous in it's implementation.
hopefully they can downsize the number of shops & turn it around, i didn't even know they had shops in france !
El Mag on 3 Feb '12 said:
p**s take isn't it. That Tesco link has a few places in a price comparison.
Tesco - £35.00
Argos - £47.99
Comet - £44.99
Currys - £39.99
Dixons - £35.00
PC World - £39.99
Toys R Us - £37.99
And then the 53 quid at Game.
Looks like they're all just charging what they want and hoping they get away with being cheeky as f**k.
WHITEyy118 on 3 Feb '12 said:
GAME is a joke, why are people saving it?
Take a look at this from their site (http://www.gamegroup.plc.uk/gmg_plc/about/strategy/),
We will:
Grow our web and digital business dramatically,
Ensure our great stores work seamlessly with our web offering,
Deliver the very best range of games and gaming products to customers, including products you can’t buy anywhere else,
Make games more affordable by creating different ways to buy and own them
Build on our amazing Reward and Elite loyalty cards by developing personalised communications with all of our customers to make sure we give them the best advice.
IF they actually follow this then yes, they'd be fairly decent, but why didn't they just do this from the beginning. Anyone can say things people want to hear but to actually follow them is another story. Before saving them I'd give them all a good shake up first because ATM, its money down the drain.
Stryker89 on 3 Feb '12 said:
To those complaining about trade-in prices, you do realise they can price match, yes? If they have competition within the same area, like HMV or CEX, get on their website, make a note of the trade-in prices on the games you want to get rid of, and GAME will match it. Couple that with whatever you might have on a reward card and you've actually got a decent deal. Seriously, look into it a bit more before exclaiming "LOL rubbish trade-in prices".
rbt2 on 3 Feb '12 said:
I don't think it's the trade-in prices that people are moaning about so much, although they are s**t, but the new game prices.
As for the reward card lark, that's exactly what it should be....a reward. Not a way to level up against more competitive companies.
TheLastDodo on 3 Feb '12 said:
My GAME does NOT price match.
I traded Red Dead & Arkham Asylum today at ASDA to knock a little off MGS HD, got 13 quid for them total, the same as HMV offered next door, Game were only going to give me 7 quid total, I showed them the HMV trade in prices on my phone from the HMV re/play app and they said they wouldn't go any higher.
Gamestation DO price match in my town but GAME don't.
Gambini on 3 Feb '12 said:
Ditto, my local GAME (2 stores on the same high street...
) do NOT price match either. The first time around, it was because they don't price match "supermarkets"... the next time (and subsequently last ever time) I asked them to price match HMV and they said they don't price match against "non-game dedicated stores"... 
Not only that, but I have over £10 stuck on my "loyalty" card from several years of off-on purchasing (usually when they do throw a decent sale item on) and I can't use it ANY Game store or on their website - after writing 4 times to their customer service, I was finally told (after 6 weeks waiting for a reply), that a new card would be sent to me.
That was November 2011 and still no card.
Game is absolute sh*t.
WHITEyy118 on 3 Feb '12 said:
I also had a slight problem.
I often receive newsletters from GAME, but never really read them, then 1 day I get an email saying they made an error in a previous newsletter and so to make up for the error (something stupid, obviously a typo, yet misleading) they gave me 10% off my next order. So at the time I was considering buying a 2nd hand PSP for my flight to NZ (24hour!) and this pretty much made my mind up. So in went the discount code and wouldn't you know it, code not accepted. I read the small print etc. and did read that it was only during a 2 day period, in which it was at the time, yet it didn't work.
At the end of the day I still bought it at full price and cba with the code. It was nice they offered an apology but then for the code not to work was utter trash. If I was bothered to contact them no doubt they would give some lame arse excuse and that I didn't qualify, so that was pretty much the last, and final, time I've used GAME.
potnoodle1 on 3 Feb '12 said:
Well I've just received two copies of Final Fantasy XIII-2 from game despite only ordering and only being billed (thankfully!) for one copy. If they want to start saving money they need to get their dispatch department sorted out. Being the good guy that I am I'll give them a ring in the morning and ship it back it to them.
ChrisBradley on 3 Feb '12 said:
went to GAME today to buy MGS:HD collection and it wasn't even there. For a company named after what it should sell, theres a suprising lack of titles except a wall of MW3's. they're range of new titles is underwhelming, beaten by even Tesco who did have it, and their pre-owned system and pricing doesn't match CEX, they need some serious reshuffling
kenbadguy on 3 Feb '12 said:
Gutted.
Absolutely gutted
billysastard on 3 Feb '12 said:
it already costs that (and more) once you paid for all the crap they take out before selling it to you.
Ali_ on 4 Feb '12 said:
I wandered into Game in the Gyle Centre, Edinburgh, on Friday to see if I could pick up something on a whim. I think I found what their problem is. They don't stock any bloody games!! The PS3 chart was half full, mainly with "coming soon" boxes (so how can they be in the sales chart?) and there were sod all older releases, unless you want to purchase from their gigantic pile of overpriced second hand games, most of which look like they've been dragged through a hedge backwards and then used as a pudding plate for a 2 year old. What's the point in having a shop where there isn't anything worth buying?
MD1500 on 4 Feb '12 said:
I want GAME to continue.
Their stores ensure that 3DS owners get at least one streetpass when going out...
sjholland87 on 4 Feb '12 said:
REALLY!?!
Waiting for the next fews post is quicker than going to a shop and buying something
sjholland87 on 4 Feb '12 said:
ebay?
You'd probably get a better price than GAME
gmcb007 on 4 Feb '12 said:
Well actually if it is a preorder then you're more than likely to get it a day early instead of waiting pick it up in store on release day.
ShadowAviation on 4 Feb '12 said:
Really? GAME is worth saving? *Prepares rant*. Firstly, there are many superior gaming stores around the place. People only go to GAME because they're either new to gaming, are harried parents, are fooled by their name or are attracted by the bright lights. Secondly, they announce pre-orders far too early, when they should really focus on promoting games that are actaully out. In fairness, GameStop sometimes goof on this too (anyone remember the LM2 pre-order?) Thirdly, their prices are just plain stupid. 20 Euro for DQIX and 40 euro for the latest Mario and Sonic shindig? (I am not typing all of that out.) Lastly, their customer service is appalling. *Receives GAME voucher for holidays*. Ok. *Tries to use voucher online*. Not ok. *Rant suspended until next available bailout*.
illage2 on 6 Feb '12 said:
£34.99 for MGS HD? Get it on Amazon it's only £27.99.
illage2 on 6 Feb '12 said:
ASDA's pricing is weird. Their pre-owned games cost more than the brand new ones.
jm3811 on 10 Feb '12 said:
What I like to see: more transparency in trading.
iroddy on 26 Feb '12 said:
PS Vita WiFi
GAME: £229... FULL RRP
Asda: £197...
They seriously need new strategies!