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GAME buys out GameStation in UK

Written By MistaRob 228 days ago
News Category: Industry News
Relevant Consoles: : Franchises
While the gaming industry is still recovering from the top news of Activision and Blizzard merging in one of the biggest industry mergers, another smaller merger was taking place across the pond in the UK.

GAME, the largest videogame retailers in the region has recently gotten the approval to buy out their main rival in the area, Gamestation and have purchased the majority of Gamestation over 200 stores.

While this may mean nothing more than a sign change and employees with different shirts on, there was some cause for alarm from the Competition Commission, which acts as the UK's antitrust regulation in the matters of the buyout as a loss in competition could mean that GAME would be the main mainstream vendor in the region and could be considered a monopoly.

With a gaming monopoly, the company could set the prices for its games higher than others and its returns lower yet its high selection means that other companies with lower prices wouldn't be able to adequately compete.

However further reviewed showed that the growth in the online sector of gaming retailers that there would still be adequate competition for the street vendors.



Tags : buyout : game : gamestation : merger : uk



Comments

By: Evren

Video Game Chat Member Avatar

On: 08:46 Dec 6th, 2007
Offline
Yeah, they did that a while ago, but were under review for creating a monopoly.

I think it's wrong that GAME was allowed to do this, because there will be a monopoly, because being honest, How many little independant game shops have you seen?

By: boa

On: 10:02 Dec 6th, 2007
Offline
Not as bad as it could of been, but it's still not good...


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