SEVEN WAYS TO CARRY OUT SUCCESSFUL BUSINESS IN RUSSIA
by Chris Stanton-Jones
1. Invest time and resources. Third-party publishers should consider putting staff on the ground as a first step towards a local office. Those that have done so, like EA, Sony, Disney and Microsoft, are all performing well thanks to their ability to work closely with local retail. 2. Encourage business expansion geographically. The [more rural] regions are where much of the growth is coming from. 3. Initiate local replication for PS3 and Xbox 360 titles. 4. Localise. All PC titles need to be localised and suitable titles on PS3 and Xbox 360 are now increasingly viable. 5. Participate in Igromir. This November consumer/trade games show usually attracts over 50,000 visitors and is the biggest event in the Russian games calendar. 6. Ensure release dates are in sync with Europe and pricing is sensitive to the grey market threat. 7. Maximise the online medium for advertising and PR. Above-the-line marketing costs are very expensive in Russia.
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which can be around a third cheaper than local goods. “The grey market is a major issue and is thought to represent anything between five to 30 per cent of the software market value,” he explains. “There is a less-organised and fragmented retail structure in Russia, with a large independent and wholesaler sector who are more prone to shopping abroad.” However, Sony’s PS3 is bucking the trend by combating piracy more effectively. This has led to sales surges of certain titles, with twice or three times as many copies sold compared to the average game. Big hits last year included Mortal Kombat, Battlefield 3and Modern Warfare 3, with Uncharted 3 Russia’s top-selling title of 2011. That’s not to take anything away from Xbox 360. Kinect titles are doing well and the sales ceiling for an Xbox 360 title is now 25,000 to 30,000 units. In fact, both HD consoles are neck-and-neck in terms of monthly sales. Both platform
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holders opened sites for local replication late last year, too, cutting down on expensive transport costs. Stanton-Jones says this healthy competition is having “a positive effect on the market”. PlayStation Vita has also had a good start. Russia is currently the
We have seen a huge growth of illegal importing from 10 per cent to 50 per cent. Boris Romanov, Gametec
No.1 territory in Europe for sales of the PSP, so you can expect PlayStation Vita to perform well in the long-term.
It may have its difficulties, but the Russian games market is back. If it can sort out its illegal import market, the future will look even brighter than it already is.