GAME To Put Itself Up For Sale
GAME, one of the main video game retailers of Britain, has apparently hired Rothschild in order to attract a buyer. As many of you may be aware, GAME has been in some financial trouble recently, and has been unable to stock many blockbuster hits, including Mass Effect 3, and Street Fighter X Tekken.
The company recently had a poor Christmas sales period, and because of it, it had to renegotiate some of its contracts with its suppliers. However, GAME was not able to secure better deals with EA and Capcom, and as a result, it has lost perhaps millions of dollars since it could not sell Mass Effect 3.
And now, enter stage right GameStop. GameStop has avoided the UK market, but with the fact that GAME’s share value is just at 0.5p a share, it can be seen that acquiring GAME might be a relatively cheap way to enter and dominate the UK market. Though the physical game industry may be a little precarious at the moment, thanks in part to rumors that the next Xbox will not contain a disc drive and may rely in part on digital sales, GameStop is still in a good position to buy, since it has no presence in the UK market, is free of debt, and has the cash needed to buy GAME. I’m sure many UK gamers will appreciate having a store that is able to carry the latest big releases.
