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‘We will fill the gap,’ pledge rivals as GAME nears the brink
But competitors fearful for long-term future of UK games retail ShopTo generates £2m in Mass Effect 3 week by Christopher Dring
RIVAL retailers say they are ready to step up as the crisis engulfing GAME Group deepens.
But these competitors are not celebrating, with leading outlets fearful of what the loss of their ‘gold- standard market leader’ will mean for the future of UK games retail. Retailers such as ShopTo,
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HMV, Asda and Blockbuster have ramped up their PR and marketing efforts to win
We are extremely concerned about the effects the GAME situation will have in the long term for the
games industry. Igor Cipolletta, ShopTo
customers during a situation that has seen big games – such as Mass Effect 3and Street Fighter X Tekken– not appear on GAME shelves. “We’ve seen a dramatic increase in our market share in the past week and started an extensive TV and Underground marketing campaign around titles unavailable from GAME stores,” said ShopTo chief Igor Cipolletta. “Although we are extremely pleased about the jump in market share, and the ability to dispatch over £2m worth of games last week, we are extremely
March 16th 2012
Retailers are cautious about the state of the market following GAME’s problems. From left to right: Blockbuster’s Gerry Butler, Asda’s Andrew Thompson, HMV’s Gennaro Castaldo, John Lewis’ Robert Hennessy and ShopTo’s Igor Cipolletta
concerned about the effects the GAME situation will have in the long term for the games industry.” John Lewis’ games buyer
Robert Hennessy added: “With the shift to online of both physical product and download, and the price-led competition in the sector, it’s no surprise profitability is becoming an issue, and that retailers are struggling to pay the bills. “Long term the format holders and software producers need to find ways of driving value back into the category, to protect its long term viability, if they want to retain retail support. “The John Lewis business model has good High street stores allied with a strong online business, and could help fill any potential gap in the market as long as the commercials work.” EA CEO John Riccitiello said last week that GAME’s rivals “will absorb that
business”. And that has certainly appeared to be the case, with Mass Effect 3 beating the previous two titles in the series last week, despite not being stocked by GAME Group. “We launched Mass Effect 3at a competitive price at midnight before the majority of retailers, and we have seen great sales as a result,” said Asda’s head of games Andrew Thompson.
ANALYSTS expect GameStop to swoop for some of GAME Group. But GameStop has refused to comment on the situation. The firm could wait until GAME enters administration and then pick up the parts of the business it wants. GameStop has been
downsizing its store portfolio in recent years – even closing its UK and Northern Ireland outlets. But the firm may see getting a strong foothold in the UK market as
an opportunity too good to miss.
GAME’s Spain stores are
also likely to attract the company. GameStop already has stores in Spain and
“We will continue to make sure Asda is the top destination for enthusiasts for future releases.” HMV communications head Gennaro Castaldo added: “We are working hard on our own advertising, PR and promotional activities, including specially-built product zones on
hmv.com, to send a positive message out to consumers so they know we
GAMESTOP SILENT ON BUYOUT RUMOURS
Portugal, but it is GAME that is the market-leader in these territories. GameStop isn’t immune to the troubles affecting the global retail games sector. However, the firm is in a strong position with zero debt, money in the bank and it has already invested heavily in digital businesses – namely flash game portal Kongregate, digital download service Impulse and streaming specialist Spawn Labs.
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have these titles in stock, and to highlight special deals we may be offering.” Gerry Butler, Blockbuster’s
Europe SVP and commercial director for UK, said: “The challenges that the video games market faces are a reminder to us all we have to keep working with publisher partners to deliver content in the way gamers want, at a price they’re prepared to pay.”
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