Yesterday, rumors popped up that Game Group, a major UK retailer behind both GAME and Gamestation outlets, was having trouble securing stock from publishers after a loss of credit insurance. We didn’t report it because the company itself was quick to shoot the rumor down.
But it looks like we may have believed them a little too quickly, as a recent EA investors call suggests.
During the meeting CEO John Riccitiello confirmed issues with a major European retailer, which could indeed be Game Group, Eurogamer suggests.
“We are concerned with the financial condition of one of our major European retail partners, which could lead to both increased bad debt and lost sales,” Riccitiello said.
Chief financial officer Eric Brown later added: “We are focused on some isolated European retailer issues that have recently been announced. A negative outcome could adversely affect our Q4 results.”
Again, they might not be talking about Game Group but given numerous reports of recent financial woes it would seem that way. All we do know is that a retailer this big having these sorts of problems is not good. At all.