Controversial UK retail chain Sports Direct has purchased a 25.75 percent stake in GAME, the UK's biggest high street video game specialist.
Despite its dominant position in the UK video game market, GAME has endured a difficult year. It recently posted a profit warning, citing the lack of Switch stock as a major problem. Back in 2012 the company entered administration and was purchased by OpCapita, but its share price has plummeted in value recently.
Following the news of the purchase, GAME's share price rallied from 20p to over 27.5p a share.
Here's GAME's statement on the news:
GAME is aware that Sports Direct has taken significant strategic equity stakes in a number of retail and brand businesses across both the UK and USA, and is a leading retailer which partners with major global brands and suppliers. GAME is pleased that the strategic value of the group has been recognised by Sports Direct through this acquisition of a 25.75% stake. The Group looks forward to working collaboratively with Sports Direct to explore the clear opportunities that a constructive partnership and collaboration can deliver for all stakeholders in the gaming, live events and rapidly growing esports markets in which it operates.
This positive news is tempered by the fact that Sports Direct boss Mike Ashley - who has also invested in French Connection and Debenhams recently - has been mired with controversy in recent years. His Sports Direct retail chain has been criticised for poor pay and terrible working conditions.
[source gamesindustry.biz]
Comments 47
GAME has no strategic value.
Mike Ashley is very dodgy
Both gross companies. Hopefully they both go down together.
As if there's not enough reasons to hate GAME already.
@SLIGEACH_EIRE exactly what I was going to say!
They never learned their lesson and sorted out their prices. I much prefer shopping in Cex nowadays.
Mike Ashley is a disgrace. Bad news for game and their employees.
Prices might come down a touch - but at the expense of everything else! Hope they don't mess up the SNES pre-orders!
This leaves me with the wobblies.
@Equinox Smyths is a good option for Nintendo stuff.
As much as I despise the man and his business practises, he is a successful business man. So why he thinks GAME is worth investing in is a mystery to me.
Agreed with @Grumblevolcano, Smyths are very good.
For online there's thegamecollection.net, simplygames.co.uk and shopto.net that are always worth considering. Failing that Argos, Tesco Direct and 365games.co.uk and worth checking out.
Mike Ashley + GAME = Hell on Earth.
Just when you thought Game couldn't get any worse.
inb4 GAME sees a 25% increase in the number of zero hour contracts.
Geez, reading comments about Game makes GameStop look like a saint.
(Though, GS these days feels more obnoxious at worst than outright anti-consumer, so I guess I should be thankful?)
I bet the staff are well chuffed, NOT!
GAME has the potential to be good. GAME has the potential to be great, but it's been reduced to nothing more than a shop that sells games; games that can be bought for less with less hassle and delivered to your door on the day of release for free.
There is no advantage to GAME, and it's genuinely disappointing. I used to love going in there and seeing what they had on offer, but the focus has shifted to profit over everything. Consumers are moving on and to cope they're having to boost their prices leaving the remaining few paying more for nothing extra in return.
The games don't need to be on display, that space can be far better used for demo kiosks and the like where people can try games out before purchasing them, adding value to the experience. If there was an Argos-type system with a back room holding thousands of individual copies of games without the need to display them nicely they could save an incredible amount of hassle and floorspace and use that to provide other experiences for the customers.
Selling games was their USP but now that has been taken over by bigger, more streamlined outlets and GAME needs to adapt to survive.
And no, I don't mean by introducing a new premium membership that offers naff all.
Is Mike Ashley a controversial figure whom has been in charge of companies with questionable moral standards and business practises?
Yup.
Does Mike Ashley turn around companies that aren't making money by making them more appealing to the consumer, and stops them going bankrupt?
Yup.
I think it's a double edged sword. Although he's no angel, he makes money from his businesses which keep the doors open. It means people remain employed and stock gets sold. I don't like game, but frankly there isn't really anywhere else as a physical shop to buy the more niche market items- like amiibo.
Sad days for Game. I miss having somewhere fun to go for gaming.
Maybe Sports Direct can turn things around but they are not a particularly moral company and I would worry about staff at game. If you thought they pushed second hand games before, god knows how much pressure they'll be under now.
@AlexOlney Totally agree re: the lack of demos. That used to be a BIG part of the experience when going into a game store (not just GAME but... stores that sell games) and now it's virtually non-existent....
Unless of course, you want a quick game of FIFA on the XBONE.
I do feel that they need to move more into the gaming café style of store. Not completely, but having a section for people to meet up and play games whilst buying some food/drink would be a great way to increase footfall and demonstrate the games organically. Easy enough to organise special events that way too.
GAME ate up Electronics Boutique and Gamestation and the country's game offerings are worse off for it.
@AlexOlney
I don't know if more demo pods is a good idea or not. It would likely mean more chavs clogging up the shop and it's already hard enough to move around in there because of all the shelves they cram into every store.
That said, moving more stuff out the back and having a much wider stock of items accessible via an Argos style catalogue would be a great idea. The last two Games I went into didn't even have any Switch Pro controllers.
Looks at the owners of sports direct and GAME.
The only thing that could save GAME is drastically overhauling their online shop to fit what other online retailers are doing, but hey ain't about to do that now are they
Sports Direct? The joke of the high street sporting goods stores? Just let GAME die already.
As long as they don't go belly up before I get my SNES Mini, Metroid Legacy Edition and Metroid amiibo's, I couldn't care less.
@olrodlegacy I miss EB and GS. They were both better stores than GAME.
@olrodlegacy Weirdly it's actually the other way around; EB took over GAME.
Axis of evil right there, people.
I won't be holding my breath, but I do kind of feel for the lovely GAME employees. I personally stopped going because the chain itself clearly favors PlayStation and Xbox titles. Walls and walls are filled with them - new and old. But as a primarily Nintendo-gamer, Wii U had a section with half the space that one of the other two had. And I got tired of seeing that. Well, that and the same playstation and xbox games over and over...
As a consumer, to bring me back in particular, they've got to give me a better reason to hang around. Maybe a chill-out area or maybe some tournaments. A few cheap freebies would go a long way too. But the only GAME shop near me seems much more geared to getting you to buy what you want that's on display then leave. There's no attempt to make a bond with the customer (I'm not talking about the employees btw as some of them are very good at the approach and help attitude). Also, I've never liked seeing the various phones and tablets they have on display. Different kinds of tech is nice, but there's already a number of phone shops dotted around the area. GAME just isn't likely to have anything unique in that regard at all. Heck, the games ARE the USP of the shop! So I don't know what the logic behind that decision even was!
And Nintendo made GAME the only place to can get 3DS streetpasses? (Which screwed me over as we don't have one on Guernsey)
Well done Nintendo, pick a winner
I wonder if a shop that specialised in Nintendo games and merchandise could cope well. I like @AlexOlney 's idea of an Argos setup that could give more space to actually enjoying the games.; demo units, some tables for snacks, drinks and multiplayer...and how about a videogame music jukebox? There should be events like tournaments and competions every month that keep the community involved too...and here's a novel idea: treat the staff with respect! Make it a job worth having.
Game is a video games retailer widely disliked by people that play video games and Ashley seems to have made a fortune out of a sports shop that is widely disliked by people that play sports. Maybe there's a future in it.
@AlexOlney have you tried buying a game from them. yeah if you want pre owned one for £2 less they have it want new sealed one are you crazy. But with scum direct things can only get worse. Only plus side is the fat gerordie B$%^$%^$%£^d might lose money.
It's ironic because Mike Ashley looks like your typical GAME customer
Wow that's Brave. No way I'd invest into Game.
Mike Ashley is a word that will get me banned if I type it here. Revolting human who treats his staff appallingly. He ignored employment legislation simply to make more money. I've never shopped at Sports Direct and if he buys up more of GAME I won't shop there again, either. Going into GAME is enough of a depressing retail experience as it is.
I seriously don't see why someone would buy new releases at Game anymore other than exclusive special editions.
Their prices are a joke compared to online stores and even some non gaming specific high street stores like Argos for example.
The only times I've been into Game in recent memory is for the Pokemon codes to which I've been told I'm too old for Pokemon by the "lovely" guy behind the desk on more than one occasion and I should buy the latest Fifa release.
I'll vote with my wallet at Toys'R'Us, thanks very much. They typically match the best online prices as well.
I enjoy going in to GAME purely because it is the only dedicated gaming store throughout most of Scotland. However, I very rarely buy anything as their prices are criminal.
All the supermarkets and online sites are selling GTA V on Xbox One for around £24 - GAME are selling it pre-owned [!!!] for £28.99. Only reason I got it there is because I had a trade-in worth £24...
I'd be sad if Game were to vanish. I enjoy walking into my local and browsing the game sections of all the systems as while I'm very knowledgeable on the Nintendo side, Sony and Microsoft I don't always know what's coming out for those 2. Why I rarely buy anything new from them unless its a birthday of mine or I'm worried about getting something on day one (My Switch for example), there are always 5 for £5/£10/£20 deals on last gen stuff I sometimes take advantage of if there's a decent selection.
Poor pay and terrible working conditions? Well then, at least current employees won't notice too much of a change.
Total game-changer (no pun intended) for me though; Splatoon 2 is the last title I will buy with Game, I refuse to take part in any 'coffer-lining' activities when it comes to this goon. Scruples and all that.
More like "GAME is pleased that they won't have to live out in the streets as someone took pity on them and bought a stake that's 20% too much to buy off this worthless and dying excuse of a gaming outlet"
Hating aside I s'pose this is very important as GAME is one of the few companies (if any) that are solely dedicated to Games. Anyway, I'm happy with my regular outlets.
Game are, or were, taking £50 deposits on SNES mini's. There's a failing business on the high Street. I'm going up to give them £50 in the hope they make it.
@alasdair91
Did you ever try CEX for trade in? The prices are on their website.
@Mart1ndo They charge even more ridiculous prices. £50 for a used copy of ARMS!
@alasdair91
Their prices are expensive for current gen games. I just trade in and take the cash with them. They are brilliant for last gen games.
I think the suits at GAME just think this is funny now. "What can we do to p*ss people off today?"
By the looks of the comments im the only one here who likes GAME and has no issue with the stores.
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