UK's Largest Specialist Video Games Retailer Enters Administration [Slashdot]

[DP ServBot]

RogueyWon writes "The GAME Group, owners of high street chains GAME and Gamestation, which between them account for a large majority of the UK's specialist games retail market, have entered into administration. In the hours following the Group's entry into administration, hundreds of stores were closed and thousands of staff made redundant. While some of the factors behind the Group's downfall, such as stores located too close to each other and overly-ambitious international expansion, were likely unique to the UK-based company, other factors, such as price competition from supermarkets and online retailers, as well as a reliance on a fickle pre-owned games market, may have wider application."

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[DOAsaturn]

I'm surprised Gamestop isn't in more trouble stateside but only seems to be looking to increase its used game volume.

What Gamestop should really do, if it wants to compete in a future digital market, is totally embrace retro gaming. Granted, the stores are probably a bit small to carry a huge variety of older stuff, but how else is Gamestop going to compete, esp. if the next gen focuses even more on digital distribution and/or authentication...

[Bojay1997]

I'm surprised Gamestop isn't in more trouble stateside but only seems to be looking to increase its used game volume.

What Gamestop should really do, if it wants to compete in a future digital market, is totally embrace retro gaming. Granted, the stores are probably a bit small to carry a huge variety of older stuff, but how else is Gamestop going to compete, esp. if the next gen focuses even more on digital distribution and/or authentication...

I see people post this suggestion from time to time and I think it represents a lack of awareness of what the market is really like out there. Most people walking into Gamestop have zero interest in retro games. Those that do are likely not going to buy them at Gamestop even if Gamestop stocked them. Gamestop is doing fine now, but you're right that they have to focus on a way to profit more from digital sales if in fact there is going to be a much smaller used market. I suspect they will convince publishers to let them sell digital passes so that used games can be activated again and essentially still profit on the difference between what they paid for a game and what they can sell it for used, factoring in the pass as an added cost.

[Collector_Gaming]

i had an argument with my little brother who i told him i wanted to create a mom and pops style game store with.. focusing more on retro (but of course embrasing modern gaming too)

and i just told him that the ideas not gonna work now.. and hes like "what you talking about.. theres people out there that wanna enjoy classic video games like us and there is no outlet for that up here"

and i told him... "look i understand that and thats what i was basing the business model on.. But... all classic themed game stores still sell modern games as well to keep sales flowing. not every guy that walks into the game store wants a old video game... and with the word going around that the next gen consoles being mostly if not completely reliant on digitally downloaded games. That market is gonna fall all together... Gamestop as we know it will cease to exist. And if they go out.. how the hell as a new business am i gonna be able to stay afloat following a similar model?"