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South Africa
MCV looks at the games market in South Africa and how back- catalogue products continue to outperform new releases
INTERNATIONAL FACTFILE
THE FACTS Population: 52,981,991 Currency: Rand GDP (Per Capita): $7,257 Capital City: Pretoria (executive), Bloemontein (judicial), Cape Town (legislative) Language: Afrikaans, English, Ndebele, Northern Sotho, Sotho, Tswana, Tsonga, Venda, Xhosa, Zulu
KEY RETAILERS
BT Games, Musica, C.N.A., Takealot, Kalahari
MAIN DISTRIBUTORS Core Gaming Systems, Nu Metro Interactive, Sterkenikor
ABOUT THE MARKET
SOUTH Africa has a games market that, despite its growth in recent years, still shows signs of struggle. The retail and distribution landscape in the country remains healthy and the number of local retail stores remains on the rise. But the country’s games market remains in a fairly weak position as prices of games products continue to rise as a result of the weak Rand. This mixed with consumer anticipation for the Xbox One and PlayStation 4 means consumers aren’t buying new products.. A report by market analyst GfK found games sales in the country had declined throughout the first half of 2013. Overall sales in the market were down by between two and five per cent, whilst revenue was found to have increased by just one to two per cent.
South Africa remains absent from the Xbox One’s list of launch territories and a date for its release
www.mcvuk.com
Just 2,000 Wii U consoles were sold between 2012 and 2013, while the original Wii had over ten times this figure.
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The absence of Microsoft and Sony’s next-gen consoles means demand for current-gen machines has increased, as well as boosting the second-hand games market. GfK reports that over 50,000 Xbox 360 units had been sold during November 2012 to April 2013 whilst the PlayStation 3
in the country seems way off. Pricing for the console is another unknown for the region’s consumers but it is expected to greatly exceed the R4,000 (£253) mark.
generated similar figures across the same period.
This demand for current and back catalogue products isn’t unknown in South Africa, as Sony’s PS2 and PSP consoles maintained a third of all software sales in South Africa as recently as 2011.
This demand has also seen Nintendo’s Wii console thrive – it continues to outperform its next- gen successor, the Wii U. GfK reports just 2,000 Wii U consoles were sold in South Africa between 2012 and 2013. In comparison, the original Wii was found to have over ten times this figure. However, these figures were boosted by the introduction of the budget-priced Wii Mini within the country.
Similarly, Wii U titles have struggled too. A number of the country’s retailers suggest that the ratio of Wii U games to consoles in South Africa stands at just 2:1.
Around the World 51
TOP DEVELOPERS I-Imagine Interactive, Luma Arcade
PUBLISHERS WITH A LOCAL OFFICE
Airgames, Electronic Arts, Microsoft, Sony
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