Game group in crisis as supplier pulls plug

GAME GROUP plunged into crisis today as one of the biggest video game makers in the world stopped supplying the high street chain.

A memo revealed Game and Electronic Arts had fallen out over "credit terms".

It means Game will no longer receive Mass Effect 3, the largest game of the year so far, or other March releases.

The row means Game may also miss out on Mario Party 9, and FIFA 13.

Game earlier this month struck a deal with banks to avoid breaching the terms of its loans.

But today's blow will send thousands of customers into the open arms of rivals such as Amazon and the supermarkets.

Shares crashed 12 per cent to just 5p.

The memo, written by Tom Devine, group channel director, shows EA refused to amend its credit terms to give Game a big enough profits margin.

It says: "Last week we held an industry 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 re-financing 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 their 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 not to stock EA's March releases."

Game insisted it was confident the dispute would be "short-term".

In an official statement, Game said those who had paid a deposit for Mass Effect would get a refund — as well as £5-worth of reward points.

Article: http://www.thesun.co.uk/sol/homepage/news/money/4162568/Game-group-in-crisis-as-supplier-pulls-plug.html

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