Game buys Gamestation

Two biggest specialist games retailers in the UK become one in £74 million deal.

Game has acquired 217 Gamestation stores across the UK and Ireland, bringing its total number of stores (including franchises) to 1,047 worldwide.

The company confirmed today that the deal had taken place for £74 million (approx $147 million) and that the company had unconditionally acquired Gamestation from video rental company Blockbuster UK Ltd.

The two separate brands will be retained, meaning Gamestation stores will keep their name. Gamestation will also continue to focus on its existing customer base, which consists primarily of preowned purchasers and male games enthusiasts.

The concessions run inside Blockbuster stores are not part of the deal and will "cease to operate under the Gamestation brand" by the deadline date of June 30.

Game expects that the deal will moderately enhance its earnings per share by the end of 12 months and that it is "anticipated to deliver synergies" of £7 million ($14 million) per annum after the end of two years.

Game's chairman, Peter Lewis, commented on the acquisition, "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. ... I am confident that this transaction will add considerable value to Game and its shareholders over the coming years."

Gamestation reported revenues of £203.5 million ($405 million) in 2006, along with profits before taxation of £2.1 million ($4.2 million).

Over the past three years Game has made a number of acquisitions worldwide, including Maxi Livres in France, Games Wizards in Australia, and Spiderman in Norway. The company recently reported strong sales and a triple in profits in its 2006 financials.

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Discussion

162 comments
the_chojin99
the_chojin99

as long as thay dont make gamestation have that evil return policy and GIVES BACK THE RETRO GAMES (thayve been taken away from my local store) it could be ok i gess

OHJOY90
OHJOY90

Awesome. Maybe GameStations will get bigger and better managed? They're overall better than Game but this acquisition could very well make it better rather than worse.

exocel
exocel

noooooooooooo!, were will i get cheaply priced games from now?

theKSMM
theKSMM

When GameStop purchased EB Games here in the US, I thought it would mean that some stores in close proximity to each other would close. That hasn't happened yet, but it has greatly reduced the incentive to "comparison shop" at the various stores since the prices and inventory are pretty uniform across both brands now.

TrumpyTheDog
TrumpyTheDog

Whilst they might have said they don't plan to make any changes I can't believe that for a second.... it would be a pretty dumb move to take something over and publicly say that they plan to butcher the life out of it. It may not happen all at once but I figure in 3 or 4 months the trade in prices will suddenly be the same accross the board, Gamestation will start offering pre-owned games in the same 2 for 40 notes type deals as Game and the new hardware bundles will be identical. At least where I am there are a couple of independant stores, a reliable stall on the weekend market and a decent Forbidden Planet that I can use for older stuff... I'll stick to the internet for new releases.

HXCDEW
HXCDEW

This is a great move by GAME, both in terms of expanding their business and sharing their expertise across the pond. Hopefully this means good things for the actual gamers.

HXCDEW
HXCDEW

This is a great move by GAME, both in terms of expanding their business and sharing expertise, possibly even to stop an invasion by Gamestop from across the big pond. Hopefully this means good things for the actual gamers.

DrMario57
DrMario57

THANK YOU thomfilm ... He read the article. :D Grimbee > no.. I DON'T know what you mean. hahha look how many 'I mean's' there were.. Im not saying the GAME is better than Gamestation. Basically Gamestation and Game are like the 360 and PS3. Gamestation does everything, and GAME tries, gets some where, but really at the end of the day, its too darn expencive ya know? (oh and 360 is more backward compatable... (preowned)) :P

richwalker13
richwalker13

Give it a year and I'm sure gamestation will go the way of electronics boutique... :-p Thank god for CEX and Playtime in Leeds

02sfraser
02sfraser

I like GAME but gamestation is good in its own way. I really dont want either stores to change.

play_old_games
play_old_games

Well, looks like Game have got both Park Lane and Mayfair now. Still, if it's strictly a purchase of the brand and stores with no intention of changing the operational side of things, then no worries. But here in my home town, we have 2 Game stores within 100 metres of each other, and a GameStation very close to them - so I'd imagine something's gotta give there. And why in the name of all that is holy do people waste time posting comments like 'doesn't concern me'? How pointless can you get.

ArfenZard15
ArfenZard15

If so much as the SLIGHTEST thing happens to my local Gamestation because of this I'm gonna f***ing scream. And I mean that. I despise GAME, and I adore Gamestation. This news, quite frankly, scares and sickens me

thomfilm
thomfilm

Has anyone actualy read the article? :S Gamestation is not turning into Game. Its merely having a change of ownership. The reason Game has boght GS is because of the difference in audience, that along with GS being a growing business. Through aquiring GS Game can attract that part of the market without having to rework its overall stratergy. It makes sense to keep the GameStation brand intact. Also, by sharing ownership, shareholders and the business dont have to work about loosing out to GameStation any more. And If it turns out that GS is more successful then it is not as bad news for GAME stores. It just means a few shop fronts and shelves have to change.

ball_of_air
ball_of_air

The GAME where I live offers better customer service and better trade-in prices than Gamestation.

ball_of_air
ball_of_air

[This message was deleted at the request of the original poster]

drbob
drbob

This is a move by GAME to stifle competition in the UK games market - Gamestation was up for sale and GAME has been very worried that Gamestop (the US firm that dominates the market over there) was going to buy them and dramatically expand their UK operation.

They have killed two birds with one stone - made it much harder for Gamestop to expand their UK operation (they currently only have two UK stores in Birmingham and Stockport) and removed an existing competitor from the high street. I really don't think that many of the existing Gamestation stores will remain open - their prices are generally lower than GAME and on most high streets they are in direct competition - the whole "concentrate on male enthusiasts" spin is a smokescreen to avoid immediate problems with the Gamestation staff

GrimBee
GrimBee

DrMario "Gamestation will also continue to focus on its existing customer base" this means nothing, I mean - thats what Kaz Hirai said about the ps3... In other ways, I prefer GAME when it comes to getting one or two exclusive pre-order releases (sonic came with a special sleeve for the 360 version (even though the game was completel pap). But gamestation overall, mainly because of the staff - They ALWAYS go back and check through their stock for my weird needs. And they almost always have it. I mean, when you manage to track down a copy of Streets Of Rage 3 for the megadrive for £12, you know its a good store. On eBay, they were selling for £60 a piece at the time! (now I own every megadrive game in existence, but thats not the point...). Gamestation has some excellent "BUNDLE" deals - I mean, you can buy a wii, and pick ANY two games. In GAME, you have to pick ANY two games "FROM THIS SELECTION" and they are the usual games they have plenty of stock of, nothing like sonic or trauma centre, stuff like cars and tiger woods... And the GAME staff have been trained at NOTHING. Gamestation staff have to deal with a lot of pre-owned consoles, testing them, even ones from 20+ years ago. GAME staff simply take the preowned console, and put it at the back and they test it later, or simply sell it - and live by their guarantee. I went to GAME to ask if Sonic on the 360 was any good. One of the staff said "If you like platform games, this game is amazing".... I went to gamestation, who 3 weeks later was selling sonic on the 360 for half the price (this was just after christmas now), and my friend went up to purchase it (I told him not to) and the staff recommended him to NOT get the game!! hehe. Plus - I wonder if this now stops towns having two game/gamestation stores. I mean, you don't see more than one "next" store, or more than one "whsmith". If game call gamestation game, then this means its less likely two stores will be in one town :(

Dav_id83
Dav_id83

Sorry but I would prefer GAME when it comes to getting a fair deal on buying a title GAMESTATION is not that good where I live. Have a reward card save £1 of this title thats GS's deal for you where as at GAME you get deals like buy 2 games get 1 half price and still get full reward points for future money off. Gamestation near me said 1 game title I asked for dosn't even exsist and I asked for GranStream Saga on playstation. Only thing GS is good for if you look hard is there pre-owned section which is slightly more than GAME..

akira3333
akira3333

GAME is the worst place ever to ask a question about games!! Gamestation in our area have people who ACTUALLY play games serving us,we can ask them a question and they have a brain to think and reply with a decent answer...But GAME (ha ha ha) ask them a question and they say Erm ill just go and ask another staff member,then after 10 mins come back and say.im not sure, if you call back tomorrow im sure we could give you an answer!! yeah right you dumb five star Mcdonnald ex employee.. i hate GAME staff there so THICK.. now there gona join Gamestation,were will we shop then!! My Supermarket store are more informative with there games.. Just employ staff that Know the difference between a Video player and an Xbox 360, and them suits they were dont improve there IQ, GAME staff wana go back to the supermarket and keep collecting them trollies!!

PelekotansDream
PelekotansDream

I hate gamestation, their staff were always rude. Only a couple of people were good. In game though, everyone is a cool dude.

FX102
FX102

As long as Gamestation keeps their return policy, where you can exchange any console game within 10 days of purchase, even after playing it, I'm happy.

kavadias1981
kavadias1981

I hate both stores with a passion... so of course I never buy from them!

zsc4
zsc4

It is all business tactics so what, if you don't like Gane don't buy from them...it is as simple as that.

adam2987
adam2987

Well I'd miss the smell of the body odour if anything DID happen to Gamestation. You really can smell it when you walk in there. Long live Gamestation...and the smell...

Acerbity
Acerbity

I don't know where you live "TorugotoShinsan", but where I live it is the other way around. Game charge insane prices for new games, pre-owned games and consoles and Gamestation have really low prices. When I bought my DS, I got it from Gamestation for £110 with a brand new game worth £30, where as in Game, it was £140 for just the DS.

aliengroups
aliengroups

Another great example of how major corperations will eventually take over the worl and start batteling eachother for supremacy, and once thats over don't even get me started on how they will try to take over the government! (don't worry, i'm not crazy, i'm just putting this out there to prove they have too much money for even the government to eventually be able to control them!) Too bad for the consumers though mergers usually spell out worse quality, less choice, and less barganing capibilities.

Timonius
Timonius

They own Norwegian Spiderman!? More importantly, the two outlets that are literally a matter of feet away in the city centre have now become one... They'd be stupid to support both, as both are large and on hot property... Either way Im going to end up with -Less supply on preorders and new releases -Less chance to bargain hunt between the two -Gamestation ALWAYS has something classy playing, whilst GAME sticks to re-runs of Wii games on TV screens.. I like them both, but I can see my choice becoming more limited... Hug time in Gamestation tommorow I think :p Mort

SpareJesus
SpareJesus

Grimbee: I agree completely! D= No, GameStation..your NeoGeo, SNES, NES, MegaDrive and Wonderswan collections..why!? WHY!? Oh, how I loved thee.. GameStation was awesome for having so much choice..shirts, toys, games, figures..the employees never had to wear crappy uniforms.. Bah. I hope the employees at the local GameStation don't need to change..

littlerism
littlerism

i can smell monolpoly in the air.....

DrMario57
DrMario57

This is about the UK Claw....

Lum_Yatsura
Lum_Yatsura

What's this doing here? Game and Gamestation don't have stores in the US. Blockbuster does, but that's all.

Muppetchief
Muppetchief

HOLY HELL!! lol why cant i have that amount money to spend lol

DrMario57
DrMario57

DUDE DID YOU NOT READ? "Gamestation will also continue to focus on its existing customer base, which consists primarily of preowned purchasers and male games enthusiasts. " dum4$$ GrimBee

GrimBee
GrimBee

NOOOOOOOOOOOOOOOO!!!!!!!!!!!!! Now gamestation has to get rid of all its awesome retro stuff :( And also - Gamestation has an awesome pre-owned section for pc games and dvds - GAME does not have this.

TorugotoShinsan
TorugotoShinsan

Will GAME stop making Gamestation charing stupidly high prices for thier games now? At Gamestation Spiderman 3 costs £50 (just under $100) for the 360 while GAME charge £40 (just under $80) for the exact same game. The 360 version of Call of Duty 3 for the 360 is £40 at Gamesation while GAME charge £35 (just under $70) Another example of Gamestation's stupid pricing would be Smash Bros Melee. Gamestation want £40 for a second hand copy, GAME want £20 for a second hand copy. The dumb thing is I can buy a BRAND NEW COPY of Smash Bros for £30 from Gamestation. With that kind of logic I'm happy to see that they're being taken over.

lukey9493
lukey9493

they dont even have game ar gamestation in australia

slayer1090
slayer1090

I shop at EB not game or gamestation

VAixsV
VAixsV

Well, I happen to go to both stores in my Uxbridge, and I can say that I prefer Gamestation much more. Good exchange rates, brilliant selection(I found MGS2:Substance £10 brand new) and nice staff. I know a few of them personally. I don't really like the sound of this buy out.

PMonkey
PMonkey

The only store i went into town now part of the the Game franchise. I could think of no worse possible news. Game has over the last few years become almost as expensive for games as HMV. Gamestation was the only competition on the street and was ten times better value for trade in then Game ever was. No doubt they will force Gamestation in to giving the terrible trade in values that game have offered over the last 5 years. Although hats of to Game for realising that there customers were all moving onto Gamestation for the over all better services they provide. A sad day for Gamers in the UK. It would seem online ordering is the only way to get a cheap game now :(

TheSacredCheese
TheSacredCheese

Game ****ing sucks. I've been shopping in gamestation since it was just a very small chain(my store was just a couple of shelves of pre-owned games

fredred7825
fredred7825

Gamestation stores will be assimilated to Game stores eventually

althegeek
althegeek

as long as gamestation still sell retro games, mercahndise, DVD's and t-shirts i'll be happy

wiidominance
wiidominance

man ... this is big news, not necessarily good ones though. I am surprised how gamestation is popular, even though they don't seem to make a heck load of profit , i mean 2.1 million pounds isn't all that good really, thats why they sold gamestation to Game easily. Oh well, Game rentals all the way ...!! ... amm .. not really ..

wiidominance
wiidominance

hmmmm, no competition , no gain for customers. this can't be good for us, well at least they said they will keep things intact for gamestation, but I can't see that staying for long. Oh well, I rent my games mostly, so this won't affect me as much as you guys.

KamaKase
KamaKase

Great. Back to the Monopoly it is then.

Robot_Vampire
Robot_Vampire

As long as Gamestation keep their awesome prices I'll be happy with the change.

AirGuitarist87
AirGuitarist87

Oh dear god NO! This is awful! Make it stop mummy, make it stop! Game are horrible! They have rubbish trade-in prices an the staff usual know next to nothing about games!

tatu2004
tatu2004

gamestation wasn't that great any ways GAME is way better but now GAME is taking over things should be alot better...