Legend_in_blue Posted 3 March 2012 Share Posted 3 March 2012 A financial analyst has tallied up how much profit the struggling British game retailer stands to lose over not stocking Mass Effect 3. Game (and subsidiary Gamestation) locations are the biggest and most visible game retail stores in the United Kingdom. When British gamers heard that these franchises wouldn't be stocking copies of inevitable mega-hit Mass Effect 3 on its European launch day next Friday, one of the first questions to strike many was just how much cash the ailing retailer stands to lose. A financial analyst has now provided a figure to answer that question: By not stocking Mass Effect 3 for the foreseeable future, Game UK stands to lose almost $4 million in potential profit. Speaking to The Guardian, analyst Mark Photiades from city firm Singer Capital Markets laid out the numbers. "Working on the assumption that a decent triple-A title sells 0.8m-1m titles in the first few weeks of release in the UK and assuming GAME has around 20 per cent share, we calculate that by not stocking Mass Effect 3, GAME is potentially missing out on around £6m-£7m ($9.5m - $11.1m) of revenues in the UK given the title will retail for £39.99 ($63)," he said. "It is also worth noting that margins will suffer as a result of the reward card points being offered in compensation [for cancelled pre-orders]," Photiades continued. "We estimate this could amount to another £0.3m ($.475m) of forgone gross profit as typically pre-orders account for around 30 per cent of initial sales." "So in total there could be £2m-£2.5m ($3.2m -$3.96m) of lost UK profit in a year where we are already forecasting losses of £8m ($12.7m)," added Photiades. Truth be told, most UK gamers and international onlookers will have been able to guess that the numbers would look this bad. Game has been clinging to the edge of a massive debt-shaped cliff ever since it lost its credit insurance a few weeks ago, a loss which led to it being unable to stock a wide variety of new titles, of which Mass Effect 3 is only the latest (and so far, the most prominent). As Photiades notes, "[Game's] focus very much remains on pure survival as opposed to revival at this stage." Rumors are also circling that GameStop (debt-free and clean) may be considering buying up Game's operations in the United Kingdom and other parts of Europe. However, GameStop isn't keen on the idea of purchasing the company outright as doing so would involve taking over stores in Australia, where GameStop already operates two successful game retail franchises. The smart money is on more sharp-intake-of-breath news relating to Game UK appearing in the near future, it seems. In the meantime, Eurogamer has compiled a handy list of alternative retailers selling Mass Effect 3 for British fans. Source: The Guardian Obviously not great. Thoughts people? It would appear that the internet market is finally catching up with the game retail stores on the high street. Link to comment Share on other sites More sharing options...
Stadt Posted 3 March 2012 Share Posted 3 March 2012 I looked on the website and I don't think they're are stocking Fifa street either. Link to comment Share on other sites More sharing options...
Captain... Posted 3 March 2012 Share Posted 3 March 2012 A financial analyst has tallied up how much profit the struggling British game retailer stands to lose over not stocking Mass Effect 3. Game (and subsidiary Gamestation) locations are the biggest and most visible game retail stores in the United Kingdom. When British gamers heard that these franchises wouldn't be stocking copies of inevitable mega-hit Mass Effect 3 on its European launch day next Friday, one of the first questions to strike many was just how much cash the ailing retailer stands to lose. A financial analyst has now provided a figure to answer that question: By not stocking Mass Effect 3 for the foreseeable future, Game UK stands to lose almost $4 million in potential profit. Speaking to The Guardian, analyst Mark Photiades from city firm Singer Capital Markets laid out the numbers. "Working on the assumption that a decent triple-A title sells 0.8m-1m titles in the first few weeks of release in the UK and assuming GAME has around 20 per cent share, we calculate that by not stocking Mass Effect 3, GAME is potentially missing out on around £6m-£7m ($9.5m - $11.1m) of revenues in the UK given the title will retail for £39.99 ($63)," he said. "It is also worth noting that margins will suffer as a result of the reward card points being offered in compensation [for cancelled pre-orders]," Photiades continued. "We estimate this could amount to another £0.3m ($.475m) of forgone gross profit as typically pre-orders account for around 30 per cent of initial sales." "So in total there could be £2m-£2.5m ($3.2m -$3.96m) of lost UK profit in a year where we are already forecasting losses of £8m ($12.7m)," added Photiades. Truth be told, most UK gamers and international onlookers will have been able to guess that the numbers would look this bad. Game has been clinging to the edge of a massive debt-shaped cliff ever since it lost its credit insurance a few weeks ago, a loss which led to it being unable to stock a wide variety of new titles, of which Mass Effect 3 is only the latest (and so far, the most prominent). As Photiades notes, "[Game's] focus very much remains on pure survival as opposed to revival at this stage." Rumors are also circling that GameStop (debt-free and clean) may be considering buying up Game's operations in the United Kingdom and other parts of Europe. However, GameStop isn't keen on the idea of purchasing the company outright as doing so would involve taking over stores in Australia, where GameStop already operates two successful game retail franchises. The smart money is on more sharp-intake-of-breath news relating to Game UK appearing in the near future, it seems. In the meantime, Eurogamer has compiled a handy list of alternative retailers selling Mass Effect 3 for British fans. Source: The Guardian Obviously not great. Thoughts people? It would appear that the internet market is finally catching up with the game retail stores on the high street. The bit in bold is what really frustrates me about the current economic problems, to be honest I don't fully understand it, but it is as if some financial institute has basically just condemned a company to going under. I am sure the financial reasons behind this can be justified, but everytime I read about these things happening to companies shares falling, value falling losing credit ratings, this is all happening because people make it happen. Game is a huge company and if it went under then I hate to think how many people will lose their jobs and how are they going to get out of any crisis when they are having their hands tied by financial institutions. Link to comment Share on other sites More sharing options...
Webbo Posted 3 March 2012 Share Posted 3 March 2012 The bit in bold is what really frustrates me about the current economic problems, to be honest I don't fully understand it, but it is as if some financial institute has basically just condemned a company to going under. I am sure the financial reasons behind this can be justified, but everytime I read about these things happening to companies shares falling, value falling losing credit ratings, this is all happening because people make it happen. Game is a huge company and if it went under then I hate to think how many people will lose their jobs and how are they going to get out of any crisis when they are having their hands tied by financial institutions. Would you lend somebody money if you didn't think you were going to get it back? Link to comment Share on other sites More sharing options...
Amin Posted 3 March 2012 Share Posted 3 March 2012 I don't really buy games from GAME anymore but it would be very sad if they did go under. Link to comment Share on other sites More sharing options...
Christoph Posted 3 March 2012 Share Posted 3 March 2012 Most people buy games online (shopto being my personal favourite) as you usually get your games a day before release or atleast on release date without the hassle of going to town to buy it, plus the prices are usually a tad cheaper online. I only ever really buy pre-owned games from game and the like. Link to comment Share on other sites More sharing options...
Amin Posted 3 March 2012 Share Posted 3 March 2012 Most people buy games online (shopto being my personal favourite) as you usually get your games a day before release or atleast on release date without the hassle of going to town to buy it, plus the prices are usually a tad cheaper online. I only ever really buy pre-owned games from game and the like. Spot on. I'm just dreading the day when downloads become the norm. Link to comment Share on other sites More sharing options...
Frank_mckenzie Posted 3 March 2012 Share Posted 3 March 2012 I pre ordered my mass effect 3 from game for the dlc but that's had to change Link to comment Share on other sites More sharing options...
SMX11 Posted 3 March 2012 Share Posted 3 March 2012 It's a shame but not suprising. Games will all go to digital download in the next 5-10 years anyway imo. Maybe even sooner. I wouldn't miss it because I don't play console games anymore and the selection of PC games on offer is laughable. Link to comment Share on other sites More sharing options...
acooling08 Posted 3 March 2012 Share Posted 3 March 2012 I buy all of my games from GAME, although only online. If you want to get Mass Effect 3, go on Tesco and get a discount with the code: 5mass3 Link to comment Share on other sites More sharing options...
Yojoe36 Posted 3 March 2012 Share Posted 3 March 2012 I hate high street game retailers. All of them. However, I despise EA. I REALLY despise EA Link to comment Share on other sites More sharing options...
Ashley Posted 3 March 2012 Share Posted 3 March 2012 EASPORTSFIFA For queries around a FIFA Street pre-order through GAME contact @Gamedigital and/or [email protected] 9 minutes ago EASPORTSFIFA You can no longer get FIFA Street through GAME in the UK. Alternative retailers where you can pre-order instead bit.ly/AdjGwA 10 minutes ago The above post come from Twitter. Doesn't look good for GAME does it. Link to comment Share on other sites More sharing options...
Ian W LCFC Posted 3 March 2012 Share Posted 3 March 2012 Can u get the deposit money back? Link to comment Share on other sites More sharing options...
Captain... Posted 4 March 2012 Share Posted 4 March 2012 Would you lend somebody money if you didn't think you were going to get it back? But nobody is lending them any money, they will be trying to buy copies of Mass Effect and will most likely have credit terms with the supplier, it is not the supplier that has pulled the plug, it is the people insuring the credit they are being granted that have pulled the plug, as some suppliers won't allow credit without credit insurance, they could clearly guarantee the money they require to purchase copies of Mass Effect 3, because that will almost instantly get a return on the money. If mass effect 3 is as big as somepeople think it will be then it could help keep them afloat until the market recovers. Link to comment Share on other sites More sharing options...
Maybes Posted 4 March 2012 Share Posted 4 March 2012 Bound to happen when the majority of new releases are £5 more than online retailers. Link to comment Share on other sites More sharing options...
Saxondale Posted 5 March 2012 Share Posted 5 March 2012 Computer games are the perfect example of a consumer good that is much easier to sell online than on the high street. Operating a retail store (let alone a huge chain of them) is an enormous expense and, in the modern marketplace, it's an inevitability that those retailers that continue with a high street strategy are going to find it extremely tough, if even faesible, to continue trading. Link to comment Share on other sites More sharing options...
Trav Le Bleu Posted 5 March 2012 Share Posted 5 March 2012 Aye, games and music are the ultimate "try before you buy" product on the internet - a service you're unlikely to get in store. Though ironically, in the days when music meant records and games meant tapes, stores were much more likely to let you listen/play before you bought, despite it being much more inconvenient. Weird. Link to comment Share on other sites More sharing options...
Fox92 Posted 5 March 2012 Share Posted 5 March 2012 I generally feel for business' going under, but then their prices are higher than elsewhere. For example, we went to Meadowhall on Sunday (yes, there is hardly nothing where I live - we haven't even got a GAME!) and I went in HMV and I would have thought, in their situation, prices would have been cheaper, but they weren't. And I end up not buying anything. Generally because, play.com, eBay, Amazon will all be cheaper than GAME or Gamestation. I don't know how bad company finances may be, but surely it's worth just lowering prices so people will actually buy instead of thinking no, going home and buying it for £10 cheaper on the internet. Anyway, Supermarkets and especially the internet are killing off company's. In town though, we have a new shop called 'Grainger Games' (don't know if it is Nationwide or not) and they are cheaper than elsewhere. So, I end up walking past Gamestation and calling in their instead. They have good prices on accessories and games, as well as offering better ££ if I want to trade something in. Link to comment Share on other sites More sharing options...
lavrentis Posted 5 March 2012 Share Posted 5 March 2012 I generally feel for business' going under, but then their prices are higher than elsewhere. For example, we went to Meadowhall on Sunday (yes, there is hardly nothing where I live - we haven't even got a GAME!) and I went in HMV and I would have thought, in their situation, prices would have been cheaper, but they weren't. And I end up not buying anything. Generally because, play.com, eBay, Amazon will all be cheaper than GAME or Gamestation. I don't know how bad company finances may be, but surely it's worth just lowering prices so people will actually buy instead of thinking no, going home and buying it for £10 cheaper on the internet. Anyway, Supermarkets and especially the internet are killing off company's. In town though, we have a new shop called 'Grainger Games' (don't know if it is Nationwide or not) and they are cheaper than elsewhere. So, I end up walking past Gamestation and calling in their instead. They have good prices on accessories and games, as well as offering better ££ if I want to trade something in. Cool story bro Link to comment Share on other sites More sharing options...
Fox92 Posted 5 March 2012 Share Posted 5 March 2012 Cool story bro Thanks Link to comment Share on other sites More sharing options...
whoareyaaa Posted 5 March 2012 Share Posted 5 March 2012 Never good news, but thats what the internet has done to a lot of brick and motar business. in 10 years game shops will be slimmed down or maybe not even be here and everything will end up going towards digital downloads. Who knows maybe in 20 years their will be no paper money... just a thought but thats what the world is heading towards. Link to comment Share on other sites More sharing options...
Amin Posted 5 March 2012 Share Posted 5 March 2012 Cool story bro Link to comment Share on other sites More sharing options...
Bugg Posted 5 March 2012 Share Posted 5 March 2012 I don't like to see any company go out of business. But I really, really don't like GAME. Link to comment Share on other sites More sharing options...
Fox92 Posted 5 March 2012 Share Posted 5 March 2012 I know. Don't even get "cool story bro" but there you go. Link to comment Share on other sites More sharing options...
Manwell Pablo Posted 7 March 2012 Share Posted 7 March 2012 It's sarcasem. The reason highstreets stores charge more its because their over heads are more due to higher rental and staff costs. Link to comment Share on other sites More sharing options...
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