GAME - Over (Stores go into administration)

[Mitch01]

After Games Warehouse closed it doors years ago, it left us all with one less games shop to get PC games from.

Now it appears GAME have suffered the same fate after today being placed into voluntary administration.

Source: http://www.news.com.au/technology/ga...-1226355124969

THE fate of more than 500 employees of one of Australia's largest video game retailers, GAME, hangs in the balance as the company announced it would be entering voluntary administration today.

Pricewaterhouse Coopers announced it had been appointed company partners to handle the transition.

The auditing firm said it would continue to run GAME’s 92 stores around the country while it "considers a solution for the future".

To add insult to injury, GAME Australia reportedly notified customers by text messages that people who pre-ordered the Diablo III video game would not be receiving refunds, The Verge reported, even though the retailer was still advertising that it was the last day to pre-order the Diablo III game out the front of its Sydney city store this afternoon.

The text message read:
"Due to the appointment of an administrator to our business this morning, it is with regret that I inform you all that our stores will not be receiving any stock of diablo 3 (sic)," the message read.

"Because of this, we regrettably will be unable to fulfill any pre-orders. Also, we will be unable to refund any deposits paid towards a pre-order of diablo 3. If you need any more info, please email customerrelations@game.com.au."

A company under administration is not legally required to provide refunds.

Hmmm if it does go down (and chances are it will as they were always too expensive), what's the chance of picking up some games at fire sale prices?

I'm surprised somewhat that EB are still floating around.

JB Hifi still sell PC games these days, and their prices I've noticed are dropping to be more competitive, likewise EB aren't too bad.

Still, less competition means less likelyhood of dropping prices, and it's another kick in the guts to PC game suppliers.

[ni9ht_5ta1k3r]

what a way to steal money. must be GAME'S new business model.

[csimpson]

Here's my take on the whole thing.

I'm not going to write up the text message unless I see one in person - I'm not convinced that it's real, especially given the GAME Australia Facebook and Twitter posts saying this:

Diablo III Update: online preorders will be fulfilled. If you preordered in-store please contact that store regarding availability of order.

And it's not stealing money, strangely enough. Unsecured creditors are always at the bottom of the list when it comes to getting money back from a company in adminstration. It's definitely unfortunate, but not illegal.

To anyone who's actually lost money in this - count yourself lucky at least that you're not a big bank or lender or someone with a substantial stake in GAME!

[TrennaHowar]

not really surprised by this. I see all video game shops going this way once digital releases become the norm, maybe next gen.

[Mitch01]

I always thought that if a company was under administration it couldn't trade.

Obviously I'm wrong there, but what might have occurred is that GAME are on stock hold with the disty for Diablo 3 until their financial situation is sorted out.

Wouldn't be the first time this has happened.

[csimpson]

Originally Posted by Mitch01

I always thought that if a company was under administration it couldn't trade.

You can't trade stock in a stock-market-listed company that's in administration, I'm sure that's what you're thinking of.

The job of the administrators in this case is to keep GAME running as close to normal as possible, until a buyer can be found at the right price for the right assets, or the assets can all be sold off individually.

[Frag]

Originally Posted by Mitch01

I always thought that if a company was under administration it couldn't trade.

Obviously I'm wrong there, but what might have occurred is that GAME are on stock hold with the disty for Diablo 3 until their financial situation is sorted out.

Wouldn't be the first time this has happened.

Administration is just that administration.

You are thinking Liquidation. Under administration there are certain rules, and obviously the administrators first role is to secure as much for the creditors and where possible save the company.

Its obvious where the whole game model is going, and with our rents and pays its no wonder that this is happening and will happen.

[Adarti]

The future is here, anything that can be digital will only be digital.

What that means is Book shops, Video rental shops, music shops and PC game shops are all going to close down with in the next 2 years. That is my prediction.

The sad part is that once this happens companies like I-tunes, steam, amazon and a hand full of others will monopolize the market and prises will go up.

[Frag]

Originally Posted by Adarti

The future is here, anything that can be digital will only be digital.

What that means is Book shops, Video rental shops, music shops and PC game shops are all going to close down with in the next 2 years. That is my prediction.

The sad part is that once this happens companies like I-tunes, steam, amazon and a hand full of others will monopolize the market and prises will go up.

Hopefully we can cut out the middle 10 hands and go from supplier to consumer..

[cccino]

Originally Posted by Adarti

The future is here, anything that can be digital will only be digital.

What that means is Book shops, Video rental shops, music shops and PC game shops are all going to close down with in the next 2 years. That is my prediction.

Not much of a prediction, the writing's been on the walls for years. Bookshops will probably survive though, since physical books have a value beyond just the words written in them. They'll still be under pressure from online retailers of the physical product, but to a much smaller extent compared to digital media that has no advantage in physical form (ie games, music and video).

The sad part is that once this happens companies like I-tunes, steam, amazon and a hand full of others will monopolize the market and prises will go up.

Those are the ideal conditions for brand new stores to spring up, as per capitalism theory.

[Adarti]

Originally Posted by cccino

Not much of a prediction, the writing's been on the walls for years. Bookshops will probably survive though, since physical books have a value beyond just the words written in them. They'll still be under pressure from online retailers of the physical product, but to a much smaller extent compared to digital media that has no advantage in physical form (ie games, music and video).


Those are the ideal conditions for brand new stores to spring up, as per capitalism theory.

No, no new shops will open up because technology has taken over so, no ,Vinyl records will not make a comeback, nor will new PC game shops open. I dont think anyone is stupid enough to open a video rental shop and as for book shops making a comeback in the future is unlikely. You will find the books in little antique shops with dust all over them by the end of this decade.

[cccino]

Originally Posted by Adarti

No, no new shops will open up because technology has taken over so, no ,Vinyl records will not make a comeback, nor will new PC game shops open. I dont think anyone is stupid enough to open a video rental shop and as for book shops making a comeback in the future is unlikely. You will find the books in little antique shops with dust all over them by the end of this decade.

When I say "new stores" I'm talking about online competitors to iTunes, Amazon and Steam. Almost certainly not Australian-based stores. Maybe that's not exactly what you were talking about, but those three won't have monopolies.

And like it or not, books will never die. Therefore there will need to be someone to sell them.

[Frag]

Originally Posted by cccino

When I say "new stores" I'm talking about online competitors to iTunes, Amazon and Steam. Almost certainly not Australian-based stores. Maybe that's not exactly what you were talking about, but those three won't have monopolies.

And like it or not, books will never die. Therefore there will need to be someone to sell them.

Well I dont think so, Amazon, iTunes etc, are not like ebay, its not like they need a critical mass to deliver digital products. The actual price to enter the digital market is very cheap compared to physical products. --- A web page and a digital distribution channel... Web page can be 10-100k, digital distribution would certainly be on a per mb basis initially so its not too bad. As for your labour costs etc, well pretty lean compared to a traditional store.

In the end people will go where they get the best price, service or even what is trendiest (their call), but i disagree about the monopoly unless itunes and Amazon somehow actually start making the products they sell.

I am sure there are some agreements aka record labels but I think the rise of the indy labels and indy distribution will be a hallmark of Gen Y.

You can contrast this to the eBay model where you need a critical mass of followers, so a eBay competitor has a much tougher time of doing this.. ie who wants to auction something of that has no bidders? Hence Gumtree has used its "free" price set principle to enter the market.

Anyways

[power]

Originally Posted by Adarti

The future is here, anything that can be digital will only be digital.

What that means is Book shops, Video rental shops, music shops and PC game shops are all going to close down with in the next 2 years. That is my prediction.

The sad part is that once this happens companies like I-tunes, steam, amazon and a hand full of others will monopolize the market and prises will go up.

look at the prices of big releases on Steam and Origin. Go up? To what??

Their prices are ridiculous for a digital product

Sad to see Game go, but realistically I don't think they were great to start with.

[Cayin]

Just wondering for the people that went out to pick up their pre-orders @ GAME *that were lucky enough to have chosen one that stocked it* did you by chance...like you know....get another copy of D3 on top of your order?