UK video game retailer GAME owed nearly £16 million when it entered administration for the second time in February 2026, leading to the closure of its remaining standalone stores. The business now operates only online and through concessions in Sports Direct and House Of Fraser.
Massive debt revealed
A new report from administrators KR8 Advisory reveals that GAME had debts of £15.8 million at the time of administration. This includes £3.5 million owed to a secured creditor and £12 million to unsecured creditors.
Joint administrators James Saunders and Lauren Wentworth detailed how the decline began in July 2016, when GAME reported a 71% drop in profit (£6.8 million) compared to the previous year. By the following year, the business was operating at a loss before tax of £7.1 million.
Digital shift and Brexit blamed
According to the administrators, market conditions remained difficult due to changes in consumer behaviour, including the shift from physical games to digital downloads, uncertainty associated with Brexit, and increased competition. The loss grew to £43 million by 2019. Despite a takeover by Frasers Group that same year, the financial position worsened.
The administrators added: 'Despite these efforts, the company's financial position continued to deteriorate during the final quarter of 2025, which historically had been one of the busiest trading months for the business. There have been no major console releases since 2020, and large manufacturers have cited global chip shortages as a reason for further delays.'
Industry challenges
The report notes that the lack of new console hardware hurt sales, though it overlooks the 2025 launch of the Nintendo Switch 2. Even a new console release might not have saved GAME, as the retailer rarely offered competitive pricing.
The £15.8 million debt sealed GAME's fate, but broader industry trends also threaten other game retailers. With Grand Theft Auto VI reportedly not including a physical disc and Sony planning to abandon physical games altogether from 2028, the outlook for brick-and-mortar game stores is bleak, except for independent specialist shops.
Data from economists at the Bank of England suggests that Brexit has negatively impacted the UK economy by 6%, which administrators cited as a contributing factor to GAME's struggles.
