Major UK high street retailer GAME is poised to appoint administrators, marking a significant blow to the physical gaming retail sector. The company, which specialises in video games, consoles, accessories, and gaming merchandise, has filed a notice of intention to appoint administrators, initiating a 10-day protection period from creditor action while options are evaluated.
Final Standalone Stores to Shutter
According to reports, GAME's final three standalone stores are expected to close in April 2026. This move follows a steady reduction in the retailer's high street presence over recent years, compounded by financial struggles despite previous rescue efforts.
A History of Financial Turmoil
This is not the first time GAME has faced administration. The business previously entered administration in 2012 before being rescued several years later, allowing trading to continue under new ownership. In 2019, it was acquired in a £52 million deal by Sports Direct, which later rebranded as Frasers Group. The takeover was intended to create stability, but financial pressures persisted.
Staffing cuts have been severe, with the majority of head office staff laid off in August 2024. The company has also scaled back operations, withdrawing from the pre-owned market in early 2024—a sector that had long contributed revenue through trade-ins and second-hand sales. Later that year, it discontinued its Xbox All Access offering and phased out its customer rewards programme.
Concession Model to Continue
Despite the closure of standalone stores, GAME will maintain a physical presence through concession outlets inside other Frasers Group businesses. Approximately 200 locations currently trade within Sports Direct and House of Fraser stores, ensuring some continuity in retail operations.
Leadership Changes Amid Insolvency
Alongside the insolvency process, leadership changes are underway. Managing director Nick Arran is stepping down after nine years in the role. Arran, who has extensive experience in physical media retail from previous roles at HMV, Blockbuster, and ShopTo, remains committed to the physical gaming market.
In a statement to GamesIndustry.biz, Arran said, "Gaming is our core business and we will be last man standing selling physical video games. We see our place in the market as proving that there is a place for physical, whether that be the collector's editions, which we see as the vinyl of video games, or the gifter who doesn't want to wrap up a download code for Christmas. But we need to be realistic. We have a business to run and the expectation is this will decline. So we need to fill that gap."
He added, "Expect more locations from us. We are constantly in talks with Frasers Group about where we could open up more concessions."
Broader Sector Challenges
The wider gaming retail sector faces mounting challenges as consumers increasingly shift online. Digital downloads and subscription services are replacing physical copies, leading to dwindling physical sales. This trend has pressured traditional retailers like GAME to adapt or face closure.
The appointment of administrators and store closures highlight the ongoing struggles in the high street retail environment, particularly for businesses reliant on physical media sales. As GAME navigates this second administration, its future will depend on leveraging its concession model and adapting to evolving consumer preferences.
