An exclusive gaming industry community targeted
to, and designed for Professionals, Businesses
and Students in the sectors and industries
of Gaming, New Media and the Web, all closely
related with it's Business and Industry.
A Rich content driven service including articles,
contributed discussion, news, reviews, networking, downloads,
and debate.
We strive to cater for cultural influencers,
technology decision makers, early adopters and business leaders in the gaming industry.
A medium to share your or contribute your ideas,
experiences, questions and point of view or network
with other colleagues here at iVirtua Community.
Stunning takeover confirmed as GAME looks to dominate specialist sector.
The £74 million deal comes just a week after the High Street retailer released an impressive set of financials and spoke of significant expansion.
The two brands will be kept separate within the newly-expanded business as GAME looks to increase its appeal to the mainstream consumer, with Gamestation very much focused on the core gamer.
Commenting on the acquisition, GAME chairman Peter Lewis said:
Quote:
"We are delighted to bring Gamestation into our portfolio and believe it has a strong future within the group. The Gamestation business is one we have long admired and is complementary to our existing business in terms of both store portfolio and target customer."
"By investing in both brands we will further enhance the group's retail strategy while continuing to deliver and broaden our consumer reach. I am confident that this transaction will add considerable value to GAME and its shareholders over the coming years.
OFT refers GAME to Competition Comission
http://www.gamesindustry.biz/content_page.php?aid=27515
GAME disappointed by OFT decision
http://www.gamesindustry.biz/content_page.php?aid=27520
In a statement Peter Lewis, chairman of GAME, said, "We are disappointed that the OFT found difficulty in clearing the transaction."
Quote:
"We firmly believe that a combination of GAME and Gamestation will not give rise to any substantial lessening of competition and intend to vigorously pursue this position before the Competition Commission."
He went on to state the GAME would continue to cooperate fully with the process, and was keen to "demonstrate how this transaction brings very strong consumer, commercial and employee benefits in what is an increasingly competitive market."
GamesIndustry.biz wrote:
Back in May this year European software retailer GAME announced that it was acquiring its nearest High Street competitor Gamestation for GBP 74 million (EUR 108m).
Shortly afterwards the UK's Office of Fair Trading announced that it was investigating the deal to ensure there was no negative impact on the consumer from any loss of competition in the sector.
Wikipedia wrote:
Gamestation is a chain of UK retail shops selling used and new videogames, and was the second-largest specialist video game retailer in the UK until they were bought out by GAME. It is fully owned and operated by GAME, which bought the chain in 2007.[1]
The business was originally sold by its founders during the peak sales period of PlayStation 2 to American video rental giant Blockbuster who invested heavily in an aggressive store roll out program, this coupled with competitive pricing subsidised by the buoyant video rental market of the time elevated the chain to second highest market share in the UK games industry; only peaked by GAME Group PLC themselves.
Opinion is still divided whether the company's reversal of fortune was driven by the wain in demand for Video rental mid decade or the cyclicle nature of the games industry but 2006 saw their American parent company file massive debts in the region of $550 million leading to wide spread speculation that the company was either rife to a take over or brinkering on the edge of administration.
Gamestation currently have over 200 outlets in the UK. Their smaller "concession" stores, that operate inside of some Blockbuster stores, were not involved in the GAME takeover and are now owned by Blockbuster exclusively. These stores have since been rebranded as 'Blockbuster Games' stores and no longer operate under the Gamestation logo. Gamestation are always opening new stores and the latest store to open is in Peterlee on with another store opening soon in Washington near Sunderland. Their current base of operations is Stirling Park in York.
At the time GAME commented that "As expected we have notified the acquisition of Gamestation to the OFT for normal regulatory review. This review will take about two months and we will be co-operating fully with the OFT process."
I was reading in GamesTM that they will probably keepo both brands and in many cases stores within yards of each otger - but what do you think? Do you think it will lead to them taking a liberty? Personally I always preferred GameStation, namely down to the staff and atmosphere, and better deals in many cases. Ohh and The Gamestation branch located in Birmingham, England is the largest 'games-exclusive' store in Europe
Digg Topic
Tag topic on On del.icio.us
Technorati Search
Post to Slashdot
