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Game versus EA – Fight!

Game versus EA – Fight!

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It seems there is some trouble brewing between Electronic Arts and gaming retail giant Game today. In a full text memo obtained by staff over at IGN from European Managing Director Tom Devine, it is revealed that after the release of SSX by the EA, the company will no longer stock/sell titles released by the developer/publisher.

With GameStop only announcing the closure of stores in Northern Ireland recently, we are all well aware that the gaming retail industry has been affected by the recession and now it seems that even Game can’t escape unscathed. This decision whatever spin that can placed around it won’t really help either company and we’re left asking ourselves here at the Arcade, who will be the winner?

Here is what the note states:

“Dear all,

Last week we held an event for our partners in the industry and explained the challenges we are facing in the short term – and we asked for their support.

We asked them to trade with us using manageable credit terms, and for them to continue to do that whilst we work through the strategic review and refinancing of our business.

We gave the industry commitments – we committed to integrity and openness in our dealings, and working with everyone equally.

We committed to only stocking products on which we could get the right credit terms, regardless of the title or the supplier. We will not stock products if the terms are not right for our business – we will not sacrifice long-term credit requirements for short-term sales opportunities.

As a result of us taking this position – a position that we believe is critical to our long-term health as a business – we have taken the very difficult decision to not stock EA’s March releases, includingMass Effect 3.

As a specialist retailer dedicated to games and gaming, it is never easy to make a decision not to stock a title, particularly one with such a strong fanbase. But it is imperative that we treat every supplier evenly, that we stick to our commitments, and that we don’t sign up to payment terms that will hamper us further in the future.

It is even more critical that we manage this appropriately with our loyal customers. We know they will be disappointed regarding Mass Effect in particular and in recognition of this, we will be contacting our Mass Effect pre-order customers and as a gesture of goodwill we will be offering them £5 of reward card / elite points.

I know that many of you will have to manage customer and supplier feedback directly, and I would like to thank you in advance for your support and am happy to answer any questions you have directly – just grab me as I walk around.”

 

 

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