GAME Retailer on Brink of Administration Once More
UK video game retailer GAME is reportedly on the verge of entering administration for the second time in its history, putting its remaining high street stores at serious risk of closure. The company, which was once the dominant force in UK video game retail, has seen its market position erode significantly over the past decade.
From Market Leader to Administration Threat
GAME's decline represents a dramatic fall from grace for what was previously the UK's leading video game retailer. The company first entered administration in 2012, resulting in the closure of 277 stores and the loss of more than 2,000 jobs before being rescued by investment firm OpCapita.
In 2019, the struggling retailer was acquired by retail conglomerate Frasers Group, which also owns Sports Direct and House of Fraser. Since that takeover, most GAME stores have been relocated within existing Sports Direct outlets, leading to a significant reduction in services offered to customers.
Current Crisis and Legal Proceedings
According to reports from The Business Desk, GAME has now filed a notice of intention to appoint administrators through law firm RPC. This legal move provides the company with a 10-day period of protection from creditor action while it determines its next steps.
The retailer currently operates approximately 300 stores across 240 locations throughout the United Kingdom. However, its business model has undergone substantial changes in recent years, with the company no longer selling pre-owned games or offering customer reward points.
Strategic Shifts and Market Challenges
In 2023, GAME's managing director Nick Arran revealed to Gamesindustry.biz that the company was attempting to pivot toward a "general entertainment approach" encompassing gaming, toys, board games, and technology products. This strategic shift came as the retailer struggled to maintain relevance in an increasingly digital marketplace.
The challenges facing GAME are multifaceted. The rise of digital game sales has significantly reduced demand for physical game purchases, while competitor CeX has captured the pre-owned games market with approximately 390 UK stores and over 600 locations worldwide. CeX further expanded its reach last year by partnering with delivery service Just Eat.
Previous Store Closures and Current Outlook
Frasers Group had already announced plans in 2020 to close 40 GAME stores across the UK, including locations in Mansfield, Leicester, and Glasgow Fort. These closures were part of a broader strategy to consolidate the retailer's physical presence.
As GAME faces this latest administration threat, questions remain about what purpose the retailer serves in the current retail landscape of 2026. With digital distribution dominating game sales and established competitors controlling key market segments, the future appears increasingly uncertain for what was once Britain's premier video game retailer.
The coming days will be crucial as the company's management and administrators determine whether GAME can be rescued once more or if this represents the final chapter for the iconic high street brand.
