Media Partner
The Market For Computer & Video Games
EVERY BUYER l EVERY BRANCH l EVERY WEEK Issue 653 Friday September 2nd 2011 £3.25 ‘Stop the price war’
UK games market is suffering as rival European nations prove more profitable, says Konami l Silly season begins with £20.97 Deus Ex: Human Revolution promotion l Industry leaders disagree over struggling British market
“ by Christopher Dring
THE UK games market must stop slashing prices, or its worth will be eclipsed by other European territories, Konami has warned. The publisher’s Euro chief
Kunio Neo told MCVthat the UK market is suffering, while other territories like Germany are thriving. His words come as a fresh price war erupted around Square Enix’s Deus Ex, console versions of which went on sale for £21 last week as
GameStop.co.uk moved to secure market share. Tesco followed suit with a £30 offer on the game. “UK games pricing is very
poor,” said Neo. “Retailers are always reducing prices and the profits for publishers are getting smaller. The UK is really suffering.”
IN THIS ISSUE
04 XBOX LIVE AT RETAIL Microsoft explains why the High Street is Xbox Live’s biggest ally
08 £3M FOR RESISTANCE Sony reveals the huge marketing plans for its upcoming FPS sequel
18 SONY’S JIM RYAN MCVconducts the first interview with SCEE’s new president, Jim Ryan
26 IGN’S VISION Media mogul Roy Bahat discusses IGN’sability to grow the games media market
31 RECOMMENDED Previews of FIFA 12, Dark Souls, Supremacy MMA, Harvest Moonand more
UK pricing is really poor and the profits for publishers are getting smaller.
Kunio Neo, Konami And he said that Konami is
far fromthe worst-off publisher in this situation. “We’re based in Germany and despite the economic conditions in many other countries, Germany is doing alright. So we’re not as affected as a US publisher that has a UK office. They’re suffering because they focus their sales on the UK.” Konami’s European GM of sales, marketing and products, Martin Schneider, simply added: “Tell the UK shops to stop the price war.” But the UK boss for a global publisher said the price war has its benefits. “I am envious of my opposite numbers in France and Germany – they never have to have the conversations I have. I get many calls giving me grief when our games are discounted, but there’s
“
Publishers talk about devaluing the market, but I bet they don’t mind when they sell extra units.
UK Publisher Boss “
nothing I can do. Legally I can’t make them put prices up. “While it can be frustrating, the result is that we do sell more boxes. Other firms talk about devaluing themarket, but I bet they don’t mind when they see how many
extra units they’ve shifted.” The sheer number of UK games retailers means shops are having to be more aggressive with prices.
Bee.com’s Gian Luzio said: “It’s extremely competitive. Whereas other countries
With over 10 major UK games retailers, stores must fight to win customers.
Gian Luzio,
Bee.com
Pricing in the UK is ‘really poor’ says Konami as a fresh price war erupts over Deus Ex: Human Revolution
have one or two major players we have at least ten with five per cent plus market share. This means the customer has more choice and the retailer must fight to win that customer by offering a balance of price and service.”
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