The British high street video game retailer Game has entered administration, owing £16 million. A new report from KR8 Advisory, authored by administrators James Saunders and Lauren Wentworth, attributes the company's downfall to a confluence of factors including evolving consumer behavior, intense market competition, and the economic "uncertainty associated with Brexit."
Game, which once boasted 300 stores and two e-commerce websites, began experiencing significant financial difficulties in 2016. That year, the company reported a 71 percent drop in profit compared to the previous year, with a further loss of £7.1 million the following year. The report notes that market conditions remained challenging in subsequent years, exacerbated by the ongoing shift from physical game sales to digital downloads.
By 2019, losses had deepened, leading to a shareholder agreement where Frasers Group acquired the company's intellectual property. Despite this intervention, Game's financial struggles persisted, culminating in a difficult business period in 2025. The administrators cited the lack of major console releases since 2020 and global chip shortages causing further delays as critical issues. Manufacturers have pointed to these shortages as a reason for delayed product launches.
The report also touches on future market trends that would likely have continued to challenge Game's business model. The anticipated absence of physical discs for major releases, such as Grand Theft Auto 6, and Sony's plans to cease disc production by 2028, further reduce the need for physical retail locations. Additionally, the report questions the viability of future console releases, like a potential PlayStation 6 or Xbox Helix, given component shortages and rising prices that could impact consumer affordability and purchasing volume.
The report's mention of Brexit highlights the broader economic impact of the UK's departure from the European Union, suggesting a reduction in national GDP and a subsequent effect on consumer spending power. Ultimately, the detailed account presented by KR8 Advisory paints a picture of a company unable to adapt to a rapidly changing retail landscape, leading to its administration.