Game Over

The struggling high-street shop GAME has announced that it intends to go into administration.

The gaming industry has had a tough 12 months, with no new console releases and no reason for gamers to hit the stores, what has been described by GAME as a "cyclical low point in the industry." After buying out 'Gamestation' in 2006, the company have 1,275 stores worldwide, including 600 in the UK. GAME was reaping the benefits of new game and console releases, with fans queueing over night to buy 'Call Of Duty' and other block busters until the market came to a halt. It is now predicting an underlying pre-tax loss of about £18m for the year to the end of January.

The latest big-selling game release was 'Mass Effect 3' yet GAME were unable to stock it as supplier Electronic Arts would no longer do business with them. The company have admitted that buying into Game Station may have been an over expansion in hindsight.

It's not just GAME that have been struggling on the high-street, many other shops are being threatened by online websites such as Amazon and Play.com and supermarkets pose a real threat with their discount prices. Gamers are opting to download games instead of owning a physical copy, following the footsteps of the music-industry. The gaming industry will need to look for a solution where they can embrace the digital world and use it to their advantage.