UK video game retailer GAME entered administration in February 2026, owing around £16 million in debt. A new report from KR8 Advisory, written by James Saunders and Lauren Wentworth, details the reasons behind the collapse, listing Brexit as a main contributor.
Peak and decline
At its peak, GAME operated over 300 retail stores across the UK. The company was profitable in 2015, but profits dropped 71% in 2016. By 2017, GAME was operating at a loss of £7.1 million before tax.
The report states: "Market conditions remained difficult in the subsequent years driven by changes in consumer behaviour, including the transaction from physical games to digital downloads, uncertainty associated with Brexit, and increased competition within the sector."
Brexit and economic factors
Saunders and Wentworth do not specify how Brexit affected GAME, but economists estimate the UK economy has shrunk by 6% since leaving the European Union. The cost of living crisis, also impacted by Brexit, likely reduced consumer spending on games, especially at brick-and-mortar retailers.
In 2019, Fraser Group acquired GAME, but profitability failed to improve. By 2025, the situation remained bleak.
Lack of new consoles
The report explains: "There have been no major console releases since 2020, and large manufacturers have cited global chip shortages as a reason for further delays." A new console launch might have helped GAME survive, but the PS6 and Xbox's Project Helix are not expected until at least the end of 2027.
Additionally, Grand Theft Auto 6 is set to be a digital-only release, with physical copies containing a download code. Sony is discontinuing physical discs altogether from 2028.
Conclusion
The administration advisors concluded: "Having reviewed the company's financial and operational position, it was concluded that the business was no longer viable." Few physical game retailers remain on the UK high street, with Argos, Smyths, and supermarkets as the last resorts. With Sony's move to digital and Xbox likely to follow, the future for physical game retailers looks uncertain.
