Game in Financial Crisis?
It's been a helter skelter week so far in the gaming industry, with THQ losing 170 staff members, but the financial difficulties are also being faced by retailer giant Game. There have been various rumours circulating that Game would be unable to stock new titles, beginning this week, as they had lost credit insurance with various agencies. Without this insurance the games publishers would be taking a financial risk when supplying to game, it was also rumoured that this would affect their ability to supply the new Playstation portable the Vita.
What has emerged is that there will be new titles out this week. A Game representative told Eurogamer earlier today that, "The games coming out this weekend, Final Fantasy, SoulCalibur 5 and Metal Gear Solid, are moving through our system as we speak." They have also dispelled the rumours that they will have difficulties with the Vita release and that staff wages have not been paid. It's clear however that Game is in some degree of difficulty at the moment and there are to be potentially more difficult times ahead, the struggle to meet EBITDA requirements and subsequently losing finance credit leaves the potential for publishers choosing not to supply.
Interesting times ahead...