Future of retailer GAME rocked; videogames industry holds its breath
Videogame retailer GAME are facing stiff financial challenges after poor profits last year rocked its credit insurance line.
The retailer is now in talks with individual games publishers regarding the financial difficulties to ensure its stores are continued to be stocked with new releases.
It’s not only GAME’s own fortunes that hang in the balance, but the profits of many videogame publishers, who see GAME as the primary retail channel for their wares. Most notably mega-publishers EA have rallied around GAME, noting the importance of the company staying afloat.
“We are concerned with the financial condition of one of our major European retail partners,” said EA boss John Riccitiello told investors yesterday, “which could lead to both increased bad debt and lost sales.”
CFO Eric Brown also added: “We are focused on some isolated European retailer issues that have recently been announced. A negative outcome could adversely affect our Q4 results.”
We’ll bring you more on this story as it develops.