Game’s shares dropped after it announced a profit warning due to a shortage of Nintendo consoles.
Today Game said Ashley has swooped on the stock, adding the stake to his interests in Debenhams and French Connection.
In a statement this morning Game added it was "pleased" the strategic value of the group had been realised.
"The group looks forward to working collaboratively with Sports Direct to explore the clear opportunities that a constructive partnership and collaboration can deliver for all stakeholders in the gaming, live events and rapidly growing esports markets in which it operates," it added.
It is thought that Ashley, the billionaire owner of sportswear chain Sports Direct, is interested in Game’s potential in the e-sports market.