GAME: 'Business As Usual' Mode For Now, Scheme For Gift Cards Planned

We've just gotten the official word: GAME has gone into voluntary administration, and PricewaterhouseCoopers will be the administrators of GAME. GAME will continue to trade whilst looking at potential buyers, and is looking at schemes for those holding claims on gift vouchers, loyalty cards and gift cards.

“Initially we will continue to trade all stores, operating these on as close to a 'business as usual' mode as possible whilst we get a clearer understanding of the current state of the business and actively pursue options to secure its future," said Kate Warwick, PwC partner.

“Prior to our appointment, the company’s management had been exploring interest in investing in the business with a number of parties and we will look to see whether this interest can be harnessed to continue the business or part of it through the voluntary administration process.

Warwick also commented on the issue of customers with existing gift cards.

“We are working on schemes aimed at giving customers some return on these claims if they are used to make additional purchases," she said.

According to the release, "further details will be available to customers on-line or in store from appointment".

Warwick stated that PwC will be looking into the reasons behind GAME's struggles, but believes a difficult local retail market may be part of the issue.

“While we are still investigating the causes behind the Australian administration; the impact of the administration of its parent, an ambitious national roll-out combined with the current soft retail environment appear to be key factors."

GAME Australia has also put up a Q&A section on its website, stating the following.

We are still working to clarify the status of pre-orders. At this stage we are intending on honouring certain pre-orders placed on the Diablo III and Max Payne new releases. We will provide clarity on these and other new releases in due course.

We are not able to refund customer deposits and customers who have paid a deposit for a pre-ordered item at this stage should continue to monitor the website for further updates.

Lifehacker has a valuable look at customer's rights in this situation.


Comments

    My local game have been uncompetitive for years. Refusing to price match JB upstairs, being overpriced, etc. Honestly I'm looking forwards to a sale. I admit that the sales staff are okay though.

      That's odd.

      My local game have the friendliest staff and always price-match.
      My local EB have the rudest staff I've ever had to deal with, I hope EB goes under and GAME stays.

        My Local Game store had one idiot in it. I never went back because he was such an arse. All I was looking for was if they stocked third party N64 controllers. He looked at me like I was the black plague of gaming and told me they only stock the latest and greatest... I walked past a pc box of the original diablo on my way out and raged inside.

          EB will not go under. Game Stop have no debt, money in the bank and market domination in Australia. Your comment is spoken like a true GAME staff member lol. While I do agree that GAME's staff know their product and are friendly, their prices can't justify that great service, at the end of the day, the consumer buying habits have changed and no one cares about this anymore. Its all about buying off a pallet for bargain prices and getting no customer service with self checkouts, like JB, Big W, Target etc etc.

          The thing I loved the most was the instore previews and the TV screens all over the store with something always entertaining on them. I feel for the staff but hope that the senior management rot in hell as this is all their fault for mis management

    Ethically/morally/whatever you might call it, price-matching at other stores to match the inevitable reduced price points - yay or nay?

    You're giving nothing to the redundant staff's paypackets, it'll just go to the Managers/Administrators (right?) but you're also propping up "the other guys". Also, this chain itself gleefully price-matched titles in the past.

    My local game have been great, price matching etc. Staff have always been great.

    most Game stores ive been around to have been great. Hope it goes well for GAME Aus, and good luck to staff.

    The game here in Toowoomba was too small, overpriced and the selection of games was poor compared to the Gametraders just over from it, and the EB about 30 steps away from it. I never felt any compelling reason to buy from Game, and i never will.

    Just went into my local Game and I over heard a staff member telling costumers that the story is not true and that Game UK are the ones in administration and not them.

      Game UK went into administration in march, closed over half he stored then came out of administration.

      Game Australia I most defiantly in administration now.

      Yeah; two months ago I went to ask my local GAME staff if they were going into admin and they denied that the troubles from the UK GAME would effect the Australian branch. And then I went to the pet store to look at the cute puppies and kittens.

      They probably didn't see the news, and their management hasn't bothered to fill them in. They'll find out soon enough!

    The points raised here are the reasons as to why. A chain needs to show consistancy in price and product or the customer loses faith. Why pay more if you can pay less? Why go somewhere that has a small selection?

    This all makes Luke's article on preordering (or rather, that you shouldn't preorder) seem quite timely.

    what about extended warranties? i got an extended warranty from Game a couple of years back will that be their issue or a sony issue?

      If it's still within Sony's warranty, it's with Sony. If it's out of that, you are unfortunately out of luck.

      That will be your issue, consider your extended warranty void if GAME fold.

        bugger ahh well lets hope the PS3 doesnt die like the first one...

        Consider it already void. If they're not honouring gift cards and keeping pre-order money, then there's not much hope they'll honour a warranty.

        It's freaking evil, but you're gonna have to hope it doesn't die. Generally, you should be fine, and you can always reinstall the OS by holding down the power button for 10 seconds, that fixed my PS3 last time it broke.

    I was pissed off when i went in today and was told i cant quit my pre orders and get credit

    Seeing as I was just told that I could not get a refund on a pre-order, or move it to another game I call BS on the business as usual mode. Also the usage of your game points has changed too, they can now only make up a small percentage of your overall purchase.

    If I had any gift cards, I'd be spending them in case the company goes into liquidation. I wouldn't be putting any more money on preorders either.
    While there's a chance the business might turn back around, all too often these situations result in company liquidation which could mean you lose any money you have tied up in GAME.

      ...that is IF you can use your gift cards... :S

        You won't be able to straight up use them. They will let you use them as a mark down on goods they will already have plans to be marking down anyway.

    There really should be something illegal about voiding all gift cards when a company goes into administration and still has stock.

    Voiding gift cards is just a dick move. They will move stock for a dollar before letting you use your gift card the way it was intended. If they do what Borders did with there gift cards it will essentially become a buy 1 get one free card not a gift card.

    Don't buy people gift cards. There is nothing to back up the promise of goods that they are supposed to have.

    the local GAME here, has a JBhifi literally 2 doors down, and a dick smiths below, and a big w in the centre and they have refused me regulary on price matches.. unfortunatley $20+ a game is too much to pay for resonable service

    Damn, those loss of preorders are horrendous. They knew this was coming, what a shitty business model to accept pre-orders. It was like that bridal shop that was on CNN awhile back, they accepted orders on dresses right up until they entered bankruptcy, and something like 200 women paid for dresses in full but got nothing.

    GAME are scum.

    GAME were always terrible. Small selection and staff who would pounce on you the moment you entered the store. I dont blame them though, Im guessing its management who pushes them to do it. Personally Im more concerned about Gametraders. We are losing our local one in Croydon, Vic which is a shame. Good staff, great atmosphere. Impulse buys are always from JB, but I would often make an effort to preorder anticipated games from GT to show some support.

    Keep in mind that none of this is the staffs fault. By all accounts they've been lead down the garden path as well, and are likely to be unemployed shortly.

    The game store in Civic (Canberra) is complete rubbish. I had a pre order there about 6 months ago and asked for the money back (the game hadn't been released at that point - it was a couple of weeks away) and the customer service representative told me I 'couldn't have my money back'. They are rubbish, the never match prices in there and that's what happens when you have the internet providing you competitive prices and other stores prepared to price match.

      Says right on your pre-order receipt that pre-orders cannot be refunded. Hell, I've just lost $137 on a fully paid D3CE that I've had since the day the CE was announced, but atleast I actually read what I was agreeing to when I did it instead of bitching about people just doing their job because you didn't.

        you should still get your CE, i've seen heaps of people still get their copies.

          My preorder was placed at one of the 2 Canberra stores that received no Diablos (at all, not even standards). Just got the SMS roll-out 'Game /locationhere/ will not be selling Diablo 3, no refunds will be issued' (paraphrased).

    Theyre not supplying diablo 3 and have cancled my collectors edition :(

    Extraordinarily minor point: PricewaterhouseCoopers was officially renamed as just 'PwC' last year.

    GAME wasn't too bad when they used to be Games Wizards (tho they did have a terrible info and stock problem where they couldn't tell when/if a game was coming or available) when I heard that Game was swooping in I thought it was going to ruin it and it did. I don't blame staff but like others the management who seem to have done a horrible job. I hardly ever go there. My last major purchase was the Wii on launch night.

    This place is a joke come on GAME have never being good they are just bad and overly price game you can get over the internet for half prices

Join the discussion!

Trending Stories Right Now