updated 09:05 pm EDT, Mon May 14, 2012
Funds used no longer available, not refundable to consumers
[Update: Blizzard is allowing the customers who paid money to GAME to apply it to a digital copy of Diablo III] On the eve of the highly-anticipated action role-playing game Diablo III's release, Australian retailer GAME has gone bankrupt, and an administrator has been named. Some customers that reserved the title through the chain will not only be denied the title, but any funds that have been applied to a preorder have been lost and will not be returned according to the company.
Early this morning, GAME sent the following text message: "Due to the appointment of an administrator to our business this morning, it is with regret that I inform you all that our stores will not be receiving any stock of Diablo 3. Because of this, we regrettably will be unable to fulfill any pre-orders. Also, we will be unable to refund any deposits paid towards a pre-order of diablo 3. If you need any more info, please email email@example.com."
Affected customers are not able to reallocate the funds towards other games, and can been added to an unsecured creditor's list for the purposes of the firm's administration. The Australian Corporations Act determines the order that creditors are paid in the event of a bankruptcy, and unsecured creditors are amongst the last to be paid. The administration process began in March. GAME may owe as much as $158 million to banks and suppliers. [via Kotaku]
Update: Users affected by the GAME shutdown can purchase the digitally distributed version of Diablo III and be reimbursed for the amount of their preorder. The purchase instrument used for the transaction will be reimbursed following receipt submission to Blizzard. Diablo III must be purchased by May 21, and the receipt must be submitted before June 30. The details are posted in the Blizzard customer support forums.