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GAME/Gamestation files for administration

3/21/12 5:00pm
tl;dr

The events of the past month or so are finally coming to a head as GAME/Gamestation prepares for administration. What does this mean for gamers, consumers, employees and the industry?

For the past month it has been well publicised that UK retailer GAME/Gamestation has been facing a financial crisis of some severity. It's been nothing but downhill since they suspiciously declined stocking The Last Story, followed by a whole host of game's including AAA titles from EA, Capcom and Nintendo. We've seen the retail giant liquidating stock in a desperate bid to make back what they can, and we've observed the failure of their last ditch efforts.

It's all come to a head today with the company admitting the business is worthless this morning, suspending share trading:

“The Board now considers itself to be unable to assess the business’s financial position, and is of the opinion that there is no equity value left in the Group. Therefore the Company has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today.”

Following this the company filed for administration. GAME/Gamestation's future is yet to be determined, but it doesn't look incredibly bright. Regardless, there is a lot of speculation as you'd expect. Maybe a new company will form from the ashes of GAME/Gamestation? Maybe not all of the shops will close and a massive rebranding is in order? Will this see a massive rise in independent game stores?

What is important is to understand how this affects you. Discussions have been provoked in the articles posted regarding the controversy of the last couple of weeks and many points have been made - I would either be repeating myself or paraphrasing if I were to write another article on the subject. Therefore, I'm going to highly recommend this article entitled 'How GAME's Troubles Affect You", by Keza MacDonald. It concisely covers how this event is significant, how it affects the global industry as a whole and therefore the consumers indirectly, and balances up some of the speculation of how this came to be and what will happen now. Check it out if you've got a spare 5 minutes.

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