Having spent some considerable time circling the drain, high street gaming goliath GAME has finally succumbed to the financial waters and gone into administration, taking its CEO Ian Shepherd with it. Does this mark the beginning of the end, or can the retailer be saved?

The official GAME statement reads as follows: “The group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.” The company was taken off the stock exchange last week, and has now bitten the bullet.

Sensing that his role is no longer needed in the same capacity, the company’s CEO, Ian Shepherd, has wasted no time in stepping down. “I’ve said a number of times that the administrator, once appointed, takes charge of the business,” Shepherd said in an internal memo. “Having two people try to do that is both confusing and a waste of money. With that in mind, I’ve agreed with Mike that I will step down as CEO and the business immediately – this is my final email to you all.”

GAME over: The end of cheap deals everywhere?

So what does this mean for gaming? As we mentioned last week, GAME’s departure may cause the end of supermarket mega-deals, seeing as the rest of the market now has one less force to compete with. Although let’s not get ahead of ourselves: GAME is remaining defiant and hopeful.

“Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates,” says the company, “including its biggest one, the UK.” The statement ends by suggesting that a “sale of the business is achievable.”

Do you think anyone will jump in to save the struggling business? And, what with online deals and direct online delivery becoming more commonplace, is there actually any room for a high street gaming outlet any more? Let us know your thoughts below.

Update: MCV is reporting that scores of GAME and Gamestation stores across the UK are already closing their doors. No sign of super-cheap fire-sales, unfortunately.

  • Hatchleader

    I’m more interested in what will happen to Gamestation??

    • Brad

      well seeing as they are the same company, Gamestation have also gone into administration and stores ahve already begun closing!

      • Hatchleader

        I understand that but I’m concerned as to whether they can brought by another party. The guys in my local gamestation are awesome, would be nice if someone could buy them out! Doubtful now they have started closing their shops but we will have to see.

  • http://www.facebook.com/BenjaminWilliamLong Benjamin Long Bingbangbong

    I think Game can still have a great place in the UK market and not just online. I recon they coud go down a different route and create a place for gamers to go, which would supply great connectivity and social aspect for the gaming public. While keeping physical consoles and accessories on the shelves. They could even rebrand and go into leisure style entertainment complexes (bowling, laser quest, arcades, with a similar style store) creating a new social scene that people can have faith in from there gaming services they have supplied during its history on the high street. That is if they found someone who’s got the money to invest.

  • David M

    You don’t seem to understand what the phrase ‘bite the bullet’ actually means. Shoddy.

    • Anonymous

      “To “bite the bullet” is to endure a painful or otherwise unpleasant situation that is seen as unavoidable.”

      Sounds spot on to me!

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