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March 26th, 2012, 22:41 Posted By: wraggster
Administrator PwC has today closed the doors on 277 of The GAME Group’s 609 UK and Ireland stores, MCV understands.
The result is that by the end of the day around 2,104 GAME employees will have lost their jobs - 40 per cent of its UK workforce.
15 of these jobs have been lost from its Basingstoke head office with the rest coming from its stores.
MCV’s list of closed stores is still being updated and can be found here.
Although all remaining stores are safe for the time being, their survival depends on the timely discovery of a willing investor. If a buyer is not found in the near future further store closures will likely be announced.
http://www.mcvuk.com/news/read/277-g...r-doors/093369
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March 26th, 2012, 22:35 Posted By: wraggster
Some staff from GAME's 13 Irish stores are reportedly considering a sit-in protest over unpaid redundancy.
Administrators PwC have told staff they will pay them their March wages but nothing beyond – including their April pay from their notice period and any redundancy compensation.
Instead, PwC has told staff to claim official state redundancy from the Government.
UPDATE: We are currently receiving reports that a sit-in is under way at one of GAME's Dublin stores.
http://www.mcvuk.com/news/read/irish...dispute/093375
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March 25th, 2012, 19:07 Posted By: wraggster
 You may not get HD graphics if you stick with the Wii for Epic Mickey 2, but youwill have the opportunity to experience a more tactile verisimilitude. During a preview event for the sequel, Junction Point showed off prototypes for two new Nunchuk controllers based on in-game items.
The first is an updated version of PDP's "Paintbrush Chuk" accessory, designed to mimic Mickey's paintbrush. The new version has the Epic Mickey 2 logo and a glowing blue paint blob at the end of the brush. The second, and inexplicably more desirable of the two, is a Nunchuk based on Oswald's remote device, silver and boxy. It's like a literal "Wii Remote" (except, of course, it's a Nunchuk attached to an existing Wii Remote).
Being that these were both prototypes, and the game hadn't even technically been officially announced yet, there weren't any details to be had about pricing or availability. We'll keep you updated, because these silly controllers are fun.
http://www.joystiq.com/2012/03/23/lo...er-prototypes/
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March 24th, 2012, 23:51 Posted By: wraggster
HMV will close its Guernsey warehouse and now run its website from the UK.
It follows the end of Low Value Consignment Relief (LVCR), which has allowed online retailers to sell goods tax-free into the UK. As of April 1st, there will be no tax advantage to having a warehouse in the Channel Islands.
HMV has opposed LVCR for years as it feels it gives an unfair advantage to online shops such as Play.com, The Hut Group and Amazon. However, it opened its own warehouse out there in 2005 in a bid to stay competitive with its online rivals.
CEO Simon Fox even told MCV last month that the tax loophole was 'idiotic'.
The closure of HMV's Guernsey warehouse could result in 46 redundancies, although the Group may redeploy some staff to other areas of the business.
There are also 11 temporary staff working at the facility. These contracts will be terminated.
The Guernsey warehouse will officially cease operations on July 27th, 2012. HMV.co.uk orders will now be fulfilled from its existing distribution base in Birmingham.
HMV remains concerned that some of its rivals may relocate its warehouses to other tax havens.
The Government announced its intention to end LVCR in November last year. The Channel Islands challenged this decision, but it lost its court appeal earlier this month.
HMV's Statement in full:
Whilst we understand and share recently-expressed concerns that some retailers may simply seek to relocate their online and digital fulfilment centres to other non-EU locations by way of circumventing the Government's decision to end Low Value Consignment Relief (LVCR) - and to this end we reiterate our call for a genuine level playing field, we also have to accept and respond to the fact this ruling will now definitely come into effect.
Clearly this will have a number of implications - not least in our case given the lease on our fulfilment centre in Guernsey expires in a few months time - so we were having to review our options in any event. It also means that for our online offer to remain viable and attractive to shoppers in what will continue to be a highly competitive market – particularly at a time when we are looking to develop a much stronger multi-channel offer, we need to seek greater business synergies and to further reduce our online operating costs. We have concluded that the only way we are able to realistically achieve this is by consolidating our Internet fulfilment into a single site at our existing UK distribution centre in Merlin Park, Birmingham. Our centre in Guelles Road, St Peter Port, will therefore cease to operate from a proposed date of 27th July 2012.
This is not a decision we have taken lightly, particularly as we have enjoyed a productive relationship with Guernsey, and our actions are also in no way a reflection on the dedication and valued efforts of our fulfilment team on the Island, to whom we extend our sincere and profound thanks.
The proposed closure unfortunately means that 46 colleagues at the centre are now considered at risk of redundancy. A period of consultation has now begun and as part of this process alternative options such as redeployment to other positions within the Business, potentially including the Merlin Park fulfilment site, will also be discussed.
http://www.mcvuk.com/news/read/hmv-e...s-to-uk/093338
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March 24th, 2012, 23:47 Posted By: wraggster
There is one clear front runner to buy GAME as part of a post-pack administration, sources close to the administrators have told MCV.
GAME is not officially in administration yet. The High Street chain will name Mike Jervis and Stuart Maddison of PWC as their administrators.
According to the Financial Times, the actual administration has been delayed until after the quarterly rent bill is due (Sunday, March 25th). That means PWC won't have to pick up the retailer's rent.
The 'front runner' for the group is interested in both GAME's High Street stores and its online elements.
Our sources wouldn't be drawn on who the front runner is. However, the national press – including The Times and The Telegraph – all say GameStop is the likely bidder for the UK assets. Hilco is reportedly interested in the company's international stores.
Retail Week says there are 'five or six' bidders interested in GAME in total.
http://www.mcvuk.com/news/read/one-c...or-game/093337
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March 23rd, 2012, 23:46 Posted By: wraggster
UK games retail generated £14.1m last week – a dip of 21.2 per cent from the £17.9m made during the week prior.
Unit sales also dropped 11.2 per cent to 570,969 for the week ending March 17th.
EA continued its chart dominance last week with four games in the Top Five. New release FIFA Street debuted at the top of the charts, giving EA its third new release in a row that went straight to No.1. It’s the best opening week for a FIFA Street game.
But despite the early success of Street, and the fact it wasn’t available from GAME, there wasn’t enough interest to grow the market.
Sony’s new PS3 release Twisted Metal debuted at No.12 in the All Formats Top 40. Rage and Zumba Fitness also performed well last week, with respective sales increases of 47 per cent and 15 per cent.
Of course, these numbers don’t include sales of downloadable games. Apple’s iPad 3 went on sale last week, as did Sony’s highly acclaimed PS3 download title Journey. Today’s biggest new boxed releases include Kid Icarus: Uprising and Resident Evil: Operation Raccoon City.
http://www.mcvuk.com/news/read/uk-ga...o-14-1m/093300
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March 23rd, 2012, 02:42 Posted By: wraggster
Growth in digital has seen video games overtake movies as the most lucrative entertainment medium in the UK.
The figures published in the ERA Yearbook 2012 shows that despite faltering physical sales, digital downloads and apps meant UK games market sales reached £1.92bn in 2011.
That’s well ahead of video on £1.8bn, and music which is on £1.06bn.
Games accounted for over 40 per cent of the entertainment market.
However, for the first 11 weeks of 2012, sales of physical DVDs and Blu-rays are double that of games. Even with the inclusion of digital, video is still No.1.
“This is a dramatic time for the entertainment market,” said ERA director general Kim Bayley.
“It’s a historic development for games to overtake video, which has long been the biggest entertainment sector. But sales so far this year suggest video is not going down without a fight.”
Overall games, video and music sales dropped 3.3 per cent to £4.8bn.
http://www.mcvuk.com/news/read/video...-movies/093209
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March 23rd, 2012, 00:25 Posted By: wraggster
GameStop confident that used-game market benefits industry, discusses strong publisher relationship
GameStop remains hopeful for the next-generation consoles, saying that they do not believe earlier reports concerning pre-owned bans would be possible. Talking during the quarterly earnings call, GameStop CEO Paul Raines said that publishers and manufacturers simply are not going to ignore the $1.2 billion in pre-owned sales generated each year.
"We think it's unlikely that there would be that next-gen console because the model simply hasn't been proven to work," said Raines of the rumored anti-used games feature. "Remember that used video games have a residual value. Remember that GameStop generates $1.2 billion of trade credits around the world with our used games model. So, consider taking used games out of that, you'd have to find new ways to sell the games, and our partners at the console companies have great relationships with us."
Raines commented that the business model is simply too good to pass up for the industry at large. While some might have their critiques on the used-games business, GameStop's model is opening up new games at a lower price point for many gamers, he said.
"What we've done is created a way for that new leading edge consumer to dispose of their old games and that's what creates this great circle of life we talk about that so many try to imitate."
http://www.gamesindustry.biz/article...lock-pre-owned
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March 23rd, 2012, 00:16 Posted By: wraggster
Innovation will drop on consoles, says Doublesix boss
A new wave of home consoles is provoking fear in the traditional video game sector and will accelerate the decline of innovative games, according to Doublesix CEO James Brooksby.
Speaking today at the Westminster Media Forum, Brooksby noted in feedback from last month's Game Developer's Conference there was a mixture of excitement and trepidation over current and future technology.
"Having come back from GDC I saw excitement and fear in equal measure, I saw dismay and triumph. A step to the next generation of classical consoles seems to have fear in a lot of peoples' eyes."
He said he didn't expect costs for next-generation hardware to rise as significantly as during the last generational change, but with such high costs publishers will take safer bets on trusted development partners, pushing smaller teams out of the console space.
"It still seems pretty scary for a lot of people, for developers and publishers alike. I think people will stick to proven development houses or in-house development which is going to be a challenge for the game development industry in the UK, and will probably mean there's going to be less people around of that scale."
There is notable excitement around new opportunities to make and sell games, said Brooksby, but he also expressed caution over the amount of freedom available to the consumer and a content makers' ability to find the player.
"People are excited by all the new ways in which they can make, distribute and monetise their games. We're almost spoilt for choice," he offered.
"Even though digital distribution is much heralded as the way forward, if you follow this route it's clear to many that these markets have changed and change very quickly.
"The migration and demographics changes of the consumers to pastures new are occurring. Perhaps it's the tipping point or where we are in the console cycle, but certainly gamers are moving around because they have so many options."
"As a company we need to look hard at where our audience has gone," he added. "Some of the excitement around small developers creating innovative games and reaping lots of rewards - on console that will be the exception rather than the rule. We're going to see more of those stories on smartphones, tablet and the trusty old PC."
http://www.gamesindustry.biz/article...f-peoples-eyes
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March 23rd, 2012, 00:13 Posted By: wraggster
But UK boss notes impressive sales of Mass Effect and FIFA through HMV and Amazon
[h=3]EA[/h]
[h=3]GAME Group[/h]www.game.co.uk
Electronic Arts' UK MD Keith Ramsdale has said that he expects The Game Group to rise again and return to the High Street after its administration process.
Speaking at the Westminster Media Forum today, he revealed that sales of games not stocked by GAME, which included most recent Mass Effect and FIFA Street titles, sold well through alternative retailers on the High Street and online.
"I do hope and believe there will be a phoenix rising from the flames. GAME is full of good people, it's a good store, I just think they need a different approach and I'll think they'll have one," he said.
"GAME is one retailer out of many, albeit historically a very good retailer. Without talking numbers I can tell you that when we shipped Mass Effect and FIFA Street we were very pleased with our numbers in the UK and GAME were unable to buy them."
For Ramsdale, the key to retail is diversification, and High Street stores should look to current app stores for inspiration in terms of choice .
"Would I rather there is a GAME? Absolutely I would," he said. "I believe that a specialist retailer does a lot for this industry. One of the opportunities for a specialist is to be much more multiform at than they currently are, to the point of Apple or Android.
"If you look at the current retail base, HMV seem to be stepping up and seem to be more solid. Amazon have done a good job of picking up content, so yes, there's more than just GAME. The opportunity for video game retailers is think broader than just the shiny discs."
http://www.gamesindustry.biz/article...rom-the-flames
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March 23rd, 2012, 00:11 Posted By: wraggster
There are fewer stores than ever selling games, ERA and Chart-Track says.
Last year 6,644 stores sold games, down 1.7 per cent year-on-year. It means since 2007 there are now 1,000 fewer shops selling video games.
A reduction in entertainment specialists and electrical retailers are the main reason for the decline.
The number of general multiples and supermarkets selling games has actually increased. There are now 2,402 grocers that sell games, up 6.2 per cent year-on-year.
There was also a drop in the number of games released last year. 1,094 titles came out in 2011, down 3.5 per cent from 1,133 in 2010.
http://www.mcvuk.com/news/read/sligh...numbers/093210
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March 23rd, 2012, 00:09 Posted By: wraggster
The average price of video games last year was £25.63.
That’s an increase of 5.4 per cent year-on-year. In 2010, the average cost of games was £24.32. Specialists, generalists and indies increased prices the most, up 7.1 per cent for an average selling price of £27.01.
Supermarket game prices were up 6.5 per cent to £25.48, while online the average cost of software was £25.63, up 2.6 per cent over 2010.
There are two main reasons for the rise in games prices.
Q4 blockbusters such as Call of Duty and FIFA were not heavily discounted like they have been in previous years, while sales of budget games – primarily for Wii and DS – continue to slow.
http://www.mcvuk.com/news/read/avera...-up-5-4/093212
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March 23rd, 2012, 00:00 Posted By: wraggster
Speaking to investors following the publication of its most recent fiscal results, GameStop has seemingly ruled out the chance of a GAME takeover in the UK.
“Having closed all of our UK stores, we are focused entirely on competing digitally in the UK," GameStop International’s executive VP Mike Mauler stated.
However, the exec did also state that the company “will continue to evaluate the market and opportunities".
When asked directly about a possible acquisition of GAME, GameStop – while not ruling a move out – refused to comment directly, saying it was focusing on its own business.
The claims seemingly contradict information passed to MCV claiming that GameStop is actively engaged in GAME negotiations, with a potential deal being held up by GAME overseas operations.
The company also confirmed earlier that it “expects to open international stores opportunistically” in the year ahead.
Elsewhere in the call, GameStop made it clear that it is not expecting any new hardware to be launched in 2012. It also played down concerns that the next Xbox console could drop a physical disc drive, saying that it has been able to adjust to all market changes to date.
It has also not factored in a proposed Grand Theft Auto V release for the current calendar year.
http://www.mcvuk.com/news/read/games...-the-uk/093226
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March 22nd, 2012, 23:58 Posted By: wraggster
Pokemon Company's crossover of Pokemon and Tecmo Koei'sNobunaga's Ambition series leads the Japanese all-formats chart in its debut week.
The DS title sold 172,027 copies, enough to beat two fellow new entries, Sega’s Shining Blade and Namco Bandai’s Madoka Magika Portable, both for PSP.
The PS3 version of Mass Effect 3 is another notable debutant, narrowly charting at number 20 with 8,000 units sold, Andriasang reports.
On the hardware front the platform running order is unchanged from last week. 3DS sold 64,017 units, more than twice as many as its nearest rival PS3, while Vita sales remain just above 10,000 for the third week running, trailing PSP by over 8,500 units.
01. Pokemon + Nobunaga's Ambition (Pokemon Company, DS)
02. Shining Blade (Sega, PSP)
03. Madoka Magika Portable (Namco Bandai, PSP)
04. One Piece Pirate Musou (Namco Bandai, PS3)
05. Tokimeki Memorial Girl's Side Premium 3rd Story (Konami, PSP)
06. Hatsune Miku And Future Stars Project Mirai (Sega, 3DS)
07. If I Were In A Sealed Room with a Girl I'd Probably XXX (D3, 3DS)
08. Mario Kart 7 (Nintendo, 3DS)
09. Monster Hunter 3G (Capcom, 3DS)
10. Mario & Sonic At London Olympics (Nintendo, DS)
http://www.edge-online.com/news/poke...op-japan-chart
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March 22nd, 2012, 23:56 Posted By: wraggster
Recent declines in sales of new games at US retail have portrayed a market in decline, but new figures released by NPD Group today go some way to disproving that theory.
The market research firm estimates total US spend on second-hand games, rentals, subscriptions, full-game downloads, DLC, and mobile and social games in the final three months of 2011 came to $2.04 billion.
In December, sales of new games at US retail fell 21 per cent, from $5.07 billion to $3.99 billion; at the time, NPD analyst Anita Frazier admitted it was a "very rough" month, accounting for 23 per cent of total annual sales. The average over the previous ten years was 28 per cent.
In November, there was a modest increase, from $2.99 billion to $3 billion; in October, the US retail market grew from $1.07 billion to $1.08 billion. In the final three months of the year, then, sales of new games at US retail fell by a total of $1.06 billion - other channels, however, brought in almost twice that amount.
It's a flawed comparison, of course - one that doesn't take into account non-traditional sales in 2010 - but given the rapid growth in 2011 of social and mobile gaming in particular, it's vindication for NPD, which has long claimed that retail declines were likely offset by growth in other channels.
NPD has also looked at similar sales in three key European markets. The UK generated almost $508 million, Germany $461 million, and France $320 million.
http://www.edge-online.com/news/npd-...ll-revenue-gap
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March 21st, 2012, 23:59 Posted By: wraggster
It has felt like a very slow and protracted saga, but GAME’s fall into administration today has by all accounts been swift… and brutal.
The first indication that all was not well came as early as late November, when The Telegraph asked the question “Can GAME survive?”.
However, it wasn’t until February 1st when the company was forced to rubbish reports that it would not be stocking that week’s new releases that MCV that learnt the chain was facing credit insurance issues.
That marked the beginning of a swift descent.
On February 2nd GAME confirmed a strategic review with an eye toa possible international store sell-off. By February 6th it had put a deadline on offers for its overseas business, and this was followed by the sad news a day later that 46 jobs were to be cut from GAME’s Basingstoke HQ.
Despite cries of support from the industry on February 9th, the news of a strategic review on Valentines Day and then confirmation that the chain would not be stocking the Nintendo-published Tekken 3DS on February 17th sounded the warning sirens.
The killer blow was left until later that month, however. While GAME seemed to weather the storm of missing out on Ubisoft’s entire PlayStation Vita launch title platter, it was the loss of Mass Effect 3 and the breakdown of negotiations with EA on February 29th that signalled the beginning of the end.
Despite assertions the following day that the rift with EA was only temporary, the whole industry now feared the worst. And while a summit with suppliers appeared to be positive on the face of it, by March 5th talk of administration was inescapable.
On March 11th GAME was put up for sale, leading its share value to drop to an all-time low of just 0.5p the following day.
There was new hope on March 14th when MCV confirmed that Comet owners OpCapita had tabled a bid for the chain that would pay off all current debts. The contrast with MCV’s bold magazine cover that week cut deep, but ultimately all hope proved fruitless.
Last weekend it was revealed that the OpCapita bid had been rejected by the banks. Then last night MCV revealed the chilling reality of the situation – GAME was to enter administration and reduce its store count by 50 per cent.
12 hours later the company’s shares were suspended and just moments ago GAME confirmed that it has filed for administration.
BUT WHAT NEXT?
The key thing to remember is that GAME is now in a safe period, protected by a moratorium period of, as MCV understands, 10 days. During this period nothing can be sold or stripped, allowing the Board to make the crucial decisions needed to take the chain forward.
The outcome of this period is unclear. The most likely outcome is the birth of a new company, funded by current lenders. It will retain GAME’s most valuable assets but without around 300 of its current stores – most of these are expected to come form its Gamestation portfolio. Everything outside of the UK and Spain will be sold off.
There is some good news for staff. Monies raised from the sale of assets will first be used to pay off any overdue wages. Next in line are secured creditors – the banks – then other creditors and lastly shareholders.
Other options still remain in play, however. GameStop remains very interested in GAME’s UK and Spanish operations and could well make a move for the firm now it has entered administration. Other bidders are also still involved in the process.
We can’t ignore the fact, too, that a total closure remains possible. GAME might not yet survive this, as uncomfortable as that may be.
Today the industry faces up to the bleak prospect of a UK High Street without s specialist games retailer. Here’s hoping Ian Shepherd and his staff have what it takes to ensure that doesn’t happen.
http://www.mcvuk.com/news/read/game-...ng-next/093139
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March 21st, 2012, 23:52 Posted By: wraggster
Mobile gaming isn't so mobile, after all, as two separate studies show that mobile is played most at home
Game designers often look to make mobile titles more accessible in short bursts because conventional thinking tells you that people are playing games like Angry Birds while commuting or waiting in line, but two separate studies today have indicated that people actually play these games the most while at home.
MocoSpace surveyed over 15,000 gamers in February 2012 to gain understanding around where Americans like to play mobile games. An overwhelming 96 percent answered "at home," while 83 percent said "waiting at an appointment." While commuting was actually the third response at 72 percent.
Of those 96 percent who play at home, 53 percent said they play in bed, 41 percent said they play in the living room (couch), and five percent admitted to the bathroom (although we bet it's higher).
Interestingly, since much of the playing is happening at home, the duration of gaming sessions was found to be much longer too. This console-like engagement of mobile games revealed 52 percent of respondents playing over one hour per day and 32 percent playing over three hours daily. Employers should also keep a better eye on their staff, as 10 percent of respondents answered that they play mobile games for more than three hours while at work.
"This report should make every console gaming company nervous," said MocoSpace co-founder and CEO Justin Siegel. "Mobile gaming is not a companion to consoles, but rather it's attacking them on their home turf: the couch, the La-Z-Boy and even the bedroom."
In a separate study conducted jointly by games company Miniclip and mobile ad server MoPub, the results were quite similar. "Despite the no-strings-attached freedom of mobile devices, 44 percent of gamers are playing on their couch versus any out-of-home location, including time spent traveling or waiting," states the report.
"It's interesting to see that mobile games fueled by powerful smartphone and tablets are now competing for gamer time on the same couch where console gaming used to reign supreme," said Pietro Macchiarella, research analyst at Parks Associates. "The growth in tablet penetration will have an enormous impact on the size of the mobile gaming market."
http://www.gamesindustry.biz/article...heir-home-turf
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March 21st, 2012, 23:47 Posted By: wraggster
UK trade body UKIE has described the chancellor's announcement of tax relief for the UK videogame industry as "fantastic news."
While rival trade association TIGA has tirelessly campaigned for Games Tax Relief, and was quick to claim the credit earlier today, UKIE has also pressured government for targeted tax incentives. It's the association's second major policy victory of the year, after itsuccessfully lobbied for computer science to be taught in UK schools.
CEO Jo Twist said: "This is fantastic news. The UK's game and wider interactive entertainment industry needs two things: a competitive tax regime and kids being taught the right skills in schools.
"Together this starts to make up a really good environment for all UK game and interactive entertainment businesses, from startups and innovative connected formats to major studios."
Ian Livingstone, Eidos life president and UKIE deputy chair, added: "Today's announce,ent sends a very positive message to the world for the UK to claim it is the best place to develop games and digital content. The UK is arguably the most creative nation in the world, including its world-class game designers.
"The incentives are now there to encourage inward investment, job creation and for the UK game industry to relaim its position as a world leader in game production."
UKIE will now consult with government as the specifics of the relief are hammered out, before it is implemented in April 2013.
http://www.edge-online.com/news/ukie...tic-tax-relief
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March 21st, 2012, 23:34 Posted By: wraggster
Women are more likely to give smartphone gaming a chance than men.
Video game price comparison site Playr2 has conducted a survey to determine public opinion about the blend between mobile and console gaming, following the release of the PlayStation Vita, which unites both platforms.
51 per cent of smartphone owners that have downloaded a console game app, said it was 'in order to have a portable version of the game', while 67 per cent of those answering no, said they were concerned about a 'poor gaming experience.'
Interestingly, 56 per cent of those that had downloaded the app version of console games were female, compared to the 44 per cent of males.
When asked if smartphones would ever replace consoles for gaming, 74 per cent said no, while two-thirds said no because they believe smartphone gaming will never rival console gameplay.
Simon Kilby, founder of Playr2.com, said: "With this survey we wanted to look into how gamers view app versions of console games, and it was interesting to find that more female gamers had downloaded them than men, with most simply wanting a ‘portable’ game.
http://www.mobile-ent.biz/news/read/...rubbish/017475
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