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GAME acquires Gamestation

European retailer GAME has acquired its main competitor Gamestation for GBP 74 million (EUR 108m) adding 217 stores to its group.

GAME believes that the two chains will be able to co-exist as they currently are with no re-branding required. This is because they see Gamestation as a chain catering to the more hardcore gamer and GAME to the more mainstream.

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gamesindustry.biz
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Neutral Gamer3735d ago

GAME is already renowned in the UK for charging high prices and selling pre-owned games at massive mark ups. Normally the pre-owned price is only a couple of pounds less than the new version yet they hardly pay you anything for it. Worst of all is when the pre-owned price is HIGHER than the new price!

At least with Gamestation being another big high street gaming brand, we had some competition. But now it looks like GAME are gonna be literally competing with themselves, which more likely means not at all! Sure, GAME do have some good deals sometimes, especially if you've got a Reward Card and they said in the article that the two businesses are complimentary rather than substitutes. Let's hope GAME resist the urge to further rip us off and instead adopt some positive ideas from the Gamestation business.

All I do know though, from my Economics lessons of old, is that reduced competition is always bad for the consumer, providing less choice, lower quality service, and of course higher prices. Let's hope that remains more Economic theory and less fact in this case!

techie3734d ago

We have the internet. Best place to go to be honest. Get a markdown on everything...anyone who buys games on the highstreet...unless it's a really good deal...should stop. Loads of games on play.com and amazon.co.uk are reduced by £10 before they are even out. Also great ps3 deals as well.

BlackCountryBob3734d ago

See I was sure that an American store like Gamestop would come in for Gamestation and force GAME to cut their often extortionate prices.

Thank god Play.com exists, you wont catch me buying off the high street again! Its a bad day for gamers who value competition to get cheap games. independent stores are gonna have a much harder time of it now too.

anh_duong3734d ago

GAME sucks big time.. they could suck a donkeys bollocks through a metre long straw.. bad news for casual gamers.

Andronix3734d ago (Edited 3734d ago )

This makes sense for GAME as they will now be getting a bigger piece of money spent on games.

Gamestation often do deals that are the best on the high street, particularly with console bundles. Now they are owned by GAME there will be less need to do that and prices will be maintained at a artificial 'happy high' by GAME, Virgin and HMV.

Where are all the independents?

:(

mcintosh2333734d ago (Edited 3734d ago )

game bought electronics botique aswell a couple of years ago. where is the competition commision when you need them. tesco wasn't allowed to buy safeways because they would have to much a market share but this is a monopoly, at least in edinburgh.
this should not have been allowed.

I F**KING HATE GAME

Neutral Gamer3734d ago

ANDRONIX:

There are independents around, they're just hard to find! I've got one in my town, but it's so out of the way loads of people don't even know it's there. It's a pity cos it offers a far more personalised service than GAME ever could, with people who are actually passionate and know what they're talking about.

They even happily give you discounts if you buy a half decent amount of stuff. Bought hundreds of pounds worth of consoles at GAME (for gifts) and they gave me nothing. Said they couldn't deviate from the list price. Argh!

MCINTOSH:

Yeah, I remember how hard it was for Safeway to sell itself with the other supermarkets only allowed to buy a certain number of stores in certain areas. GAME is supposed to the biggest game retailer in the UK and no one from the government even seems to have batted an eyelid over this purchase!

BrotherSic3734d ago

The reason the Competition Commission have not got involved is (probably) because:

- No one flagged the sale - i.e a competitor
- Strangely complicated market due to the number of ways to buy.
- Gamestation were not going great at the time so it would probably be allowed so jobs are secured.

Alot of mergers seem to be allowed as long as it doesn't effect major industries such as banking or groceries.

Personally this doesn't effect me as I use Play.com and make sure i shop around a bit but alot of mainstream gamers will get screwed.

I will say that the high street has been getting cheaper over the last year.

uHuRu3734d ago

GAME is the most expensive place to buy games, they sell their games above RRP sometimes, Gamestation is way better and cheaper than game. Anyway, anyone who still buys games from high street shops in the UK is a fool. PLAY.COM all the way, baby.

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