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.