DISTRIBUTION SPECIAL Boxing ring
As boxed distribution continues to evolve, firms are introducing innovative new products and services to survive the difficult economic climate. Dom Sacco offers an overview of the market
DESPITE the current market slump and the rise of digital downloads, distribution remains the lifeblood of the games industry.
Without suppliers, the route from product manufacturer to retail is blocked, and High Street stores are still vital to the video game consumer. But with VAT now at 20 per cent and retail space limited, the need for distributors to go the extra mile is greater than ever. Fortunately, many are already embracing new ideas and avenues that live up to our industry’s strong creative nature.
DELIVERING SUCCESS Koch is one such company. It entered the film distribution market last year to expand its reach, as well as continuing to offer its game sales, marketing and logistics services. It also has its own game publishing arm – Deep Silver – and accessories brand Blue Ocean. “The market now requires so much more than physical pick, pack and ship,” says Koch Media’s MD Craig McNicol.
28 March 4th 2011
“We have waved goodbye to the endless flow of cheap casual product, and have instead had to consider how retail can interface with digital so all parties maximise.” But Koch isn’t the only distributor that also publishes games and dabbles with DVDs – Creative Distribution embraced the publishing market last year with debut release Real Heroes Firefighteron Wii. It also aims to expand its DVD and Blu-ray range this year. “By dipping our toes into the publishing world it gives us a much greater insight into what we could expect moving on,” Creative’s commercial director Craig Lewis tells MCV.
One distributor – Bright Red Entertainment – has picked up several big retail deals this year after trialling game display units in non-traditional outlets such as petrol stations, and garden centres. The focus on specialist areas is increasing, too. Realtime Distribution is seeing a big demand for its high- end console accessories such as the Razer Xbox 360 controllers, while
“
The market now requires so much more than physical pick, pack and ship. We have to consider how retail can
interface with digital.
Craig McNicol, Koch Media
distributors like AntiGrav, Meroncourt and Impact Global Solutions continue to offer core peripherals and licensed products. But perhaps the biggest news to hit the distribution sector this year is the fact that Sony DADC has introduced a primary distribution service, providing publishers and developers with an all-in-one offering; It’s already well-known for disc replication.
The firm is billing itself as a rival to triple-A game distributors such as Centresoft, Koch Gem and Advantage. It is discussing direct- to-consumer deliveries on behalf of stores who run low on stock. “We’re the only service company which offers both in-house media replication and physical distribution based in the UK,” says Sony DADC’s general manager Darren Houghton. The firm even has plans to distribute games digitally.
DIGITAL DANGER?
That online game download market shows no signs of slowing down, with services such as Steam,
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