GAME, the European and Australian retail gaming giant with over 1,200 outlets similar to USA’s GameStop and Play n Trade, filed for Bankruptcy.
GAME has 600 hundred stores in the UK with a £15 million rent bill per quarter and a £10 million wage bill per month. Would their reach be more effective with only a few marquee retail stores and the rest online sales? While gaming is experiencial and in store demos and marketing can help drive sales, similar to retail book stores the overhead laden higher prices will push customers to online. Competitors, especially in the gamer demographic, will buy from tye cheapest outlet. Further, many games are downloaded bypassing even online retailers like Amazon. I wouldn’t buy a Play n Trade for those reasons, even though the used game disc market is alive and well.