UPDATE: Games Warehouse Shuts Down Indefinitely

Yesterday we posted that Games Warehouse may be in trouble after their website had all but been taken down.

Overnight we received an email from a former employee confirming our initial fears: Games Warehouse as we know it is out of commission.

Apparently all Games Warehouse staff were let go at the end of July as the business scaled back from its warehouse in Silverwater to a home office set up. Sales in the first half had been in steady decline, which resulted in what Games Warehouse owners are hoping will only be a temporary closure.

"When you have importing as an option," said our source, via email, "which is far more affordable, and download services such as Steam giving fantastic deals each and every week, your customer base does start to decline. There are also many more areas of entertainment for casual customers to spend their money on such as iPhone apps etc.

"It is a shame from my standpoint as the owners (a husband and wife team) were absolutely wonderful to work for. Never did I have a disappointing or stressful day."

Hopefully some sort of reshuffle will occur, enabling Games Warehouse to start trading again, but with the strength of the Aussie dollar, and the increased importing that follows, it will undoubtedly be an uphill battle.


Comments

    Pity - it sounds like they were good people.

    The blame for this rests with the importers/distributors. By not passing on the savings from the stronger dollar to local retailers, they're making it impossible for them to compete with overseas retailers.

      No, the blame rests on the suppliers setting prices so much higher than they need to be. If they weren't so greedy then people wouldn't have wanted to import in the first place...

        That's what I said. Sorry, ambiguous use of the word "importers". I meant the official import/distribution channels that supply local retailers, not individuals who import to take advantage of the strong dollar.

    I feel bad for this company. I used to make nearly all my purchases from there a few years ago but I think they nail the problem with steam and cheaper options os dragging customers away. Gameswarehouse is the middle man that no one needs anymore.

    It's so disappointing seeing independent game retailers go down in Australia, especially when we have so few of them!

    One of the things that surprised me when I first moved to France was how many independent retailers exist over here, and they put up a good fight against the big chain stores like GAME and Micromania (which I guess is the French equivalent of EB). These indie stores have so much more personality, stock far more obscure titles alongside the mainstream favourites, and also offer competitive prices. It makes me wish we had a few like them in Sydney.

    good riddance, and when Game and EB fall into their respective graves people might wake up and realize how much they've been ripped off all along

      Harsh dude. I wouldn't really bunch these guys in with EB.

      Woah. Games WareHouse had some really good pricing for games. Hardly in the same boat as EB or Game, but again the problem lies with the imports and distributors, not the retailers themselves.

        You guys rag on EB and GAME so hard. I understand that the games are expensive, but this is not these retailers fault. The margin involved with games is so small, the price is dictated to them by the supplier. It sucks to see another competitor go, but I dont think that GAME and EB are the devils you make them out to be. Overall as a general rule, we all pay too much in AUS for games, something we can all agree on.

          Dude the problem with EB is not the fact that they make small margins off the games its the fact that one week later they trade them in at $44 and sell them for $110. That's a massive margin and a margin they dont sink back into things that benefit the consumer enough. There was a guy who posted a series of cartoons on youtube once his username was whistleblowerxero you should track them down and watch them

      Every independent seller that falls will send more and more customers to GAME and EB. Hardly an ideal outcome.

      How is charging the RRP for something suddenly a rip off? They price match their competitors and offer some good deals.

      I shop at my local EB all the time, mainly because I get better service there than at a bigger chain like Kmart, they actually know me at EB and have a good chat about games whenever I'm in there.

      I'd rather pay the RRP and support the store than bitching about a few dollars.

    This is a shame, really. Much of the pricing in Australia is due to the "middle man"...blame those who set the prices when they bring the games here. Take Fallout New Vegas PC, for instance. EBGames US sells it for USD49.99 whereas EBGames Aust sell the same game for AUD88.00. According to XE, we are spending almost double for the same game: 88.00 AUD = 87.93 USD. Give me a break...which would you spend your hard-earn on, if given a choice. I feel sorry for Games Warehouse and will miss them...they were at the mercy of those middle men and they definitely were my first choice for buying games here.

      Yeah and it's $39.99(AU) if you import it from the UK. So as usual the Australian pricing seems like a bad deal.

    These guys saved me with my Christmas present for my sister last year. Or was it birthday? I forget.

    Either way, sad to see them go.

    Go with the flow, that's what I say. If the current environment is not good for their business, they should change the business.

    Maybe they should become the Games Imports Warehouse.

    They were never really well priced for the past couple of years.

    I expect online sellers to be cheaper than if I go into a store to get the game.

    Why pay more then wait for delivery and often postage?

    Looks like I was right. I'm not surprised as Games Warehouse didn't offer anything different compared to GAME or EB for that matter so basically, they were competing against them.

    Sad but it's a sad fact that if you can't bring in new customers, then change.

    I was in a position for several years working with an independent retailer competing quite closely with Games Warehouse... they certainly gave us a run for our money and were quite hard to price match, despite having the same suppliers for many products (as a lot of posters have stated, the cost prices available to Australian independents from distributors are woeful and make competing with multinationals or imports completely and utterly impossible).

    I'm sorry to see them go, I know how utterly cut-throat the industry is at a retail level, but to be honest I always thought these guys were going great guns and holding out as the market got tougher.

    I hate to say it, but I think we'll see the closure of all independent game retailers in this country in the not-too distant future.

    this is sad. i work around the conrner from this store. i was considering buying afew games but they ended up shutting now i have to travel out of my way and even further for video games.

    http://www.dungeoncrawl.com.au/ < This store is amazing, they have a shop in Melbourne CBD and have awesome prices, BF3 limited edition on first release cost me 52 bucks, eb and game had it for about 100-110.

    I used to work for Games Warehouse. I got a new iPod at the time and emailed myself the contact list there so I could see how contacts appeared on my iPod, as I didn't have any lol. they fired me for that, despite my explanation. Pretty brave for a 16$ an hour job. I had a lot of animosity for the morbidly obese after that.

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