An anonymous source close to GAME Australia has approached GameSpot Australia, who went on to report that Australia’s GAME will go into liquidation and that all of their retail stores will be shut down by the end of the week. The source also proclaims that the business is now “$120 million in debt.”
After PricewaterhouseCoopers (PwC) was appointed administrator of the business, it was reported that several parties expressed interest in the company. However, all potential buyers have “all walked away” since then.
PwC spokesperson Meghan Senior has since denied the reports that liquidation is the next step for the business, telling GameSpot Australia that “there are a few options if the company is not sold.” That said, liquidation is still an option.
The retailer is presently trading at their remaining stores at “as close to business as usual” after closing sixty stores and cutting 281 jobs in late May.
Analysis: Just yesterday, I noticed GAME stores closing down in more locations than I expected, so there certainly seems to be more than sixty stores closing down. As I expressed in our previous coverage of the Australian branch of GAME, I haven’t been in their store for a number of years. Although my experiences with their employees were pleasant, the company never seemed to be super competitive when it came to their pricing for many newer titles. More often than not, a mere twenty to thirty meters away would be another retail store that offered the same titles at prices up to $20 cheaper. Frankly, GAME failed where EB and JB succeeded in crafting a unique image, and because of this, many Australian gamers have been expecting their fall for a while now.
Will this affect gaming in Australia? It will be felt in certain areas, mostly in more rural or remote areas that simply don’t have the number of options more urban areas have. For some, GAME was the only retailer in there area, and it appears this may change, but I suspect that either EB or JB will quickly move in.
Nevertheless, my condolences go out to those who have been affected by this news and those who have lost their jobs.