We told you yesterday about staff from GAME stores buying Nintendo 3DS consoles from Tesco to sell in their own stores. Today we have some more worrying news about the retail chain.
Christopher Dring from MCV is reporting that Goldman Sachs thinks the GAME Group is heading for trouble. They have downgraded the retailer from neutral to sell, and thinks its move to online and digital is “too late”.
Rachel Carson from Goldman Sachs says the decision to move into online and digital markets is “late in the evolution of the industry”, and means costs will be high. She also thinks that digital downloads will be a massive threat to the company’s new and used business. GAME are currently thinking of closing 85 stores, but Carson thinks this could be as high as 105.
The Goldman Sachs report states there will be no new hardware launches before 2013, and new consoles by then will focus more on digital downloads instead of retail purchases. Software sales are predicted to be direct from publishers and will hit stores like GAME hard.
There is some glimmer of hope in the report, because if any new hardware does become available before 2013 and their online performance improves, things could turn around for the retailer.
Whether you buy from GAME or not, it will be worrying news for the many staff currently employed by the GAME Group. Let’s hope for their sakes things can be turned round.
Do you buy from GAME?