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THE MARKET FOR COMPUTER AND VIDEO GAMES
Issue 517 Friday December 12 2008 £3.25
04 Atari on the up The resurgent publisher tells MCV all about its rescue plan for the UK
07 Sega talks 2009 The publisher’s bosses look ahead to releasing a bundle of new IP next year
24 The state of PlayStation Sony European chief David Reeves discusses the firm’s console business
WITH THIS
ISSUE We take a special look at Nintendo’s literature-based title – 100 Classic Book Collection
EVERY BUYER EVERY BRANCH EVERY INDIE EVERY WEEK
INCORPORATING
£139,000,000 It’s the figure that says everything about the rude health of video games. As other industries struggle to battle the credit crunch, the UK trade’s total Q4 marketing spend has jumped into the stratosphere… by Tim Ingham UK VIDEO games companies have thrown cash in the face of the economic slowdown – spending an incredible £139 million on Q4 marketing as other trades tighten their belts. The huge figure has funded a deluge of above-the-line advertising in the past three months, dominating newspapers and TV ad breaks in the lead up to Christmas. The massive investment has also fuelled giant nationwide retail promotions – including a spate of mall tours. MCV understands that biggest contributors to the mammoth spend are platform holders, with two companies each spending in excess of £20 million since October. The highlights from both firms include gargantuan TV campaigns and massive first
and third party support in the mainstream consumer press. Deputy editor of Marketing magazine Richard Abbot said: “Despite all the talk of marketing budgets being slashed, we have seen massive campaigns not just for the consoles themselves but for games including Banjo-Kazooie and World at War. “Some of these campaigns have the production feel and media spend you would normally associate with a movie release.” And it’s not just core industry businesses that have spent big; retailers have got in on the act, too. The ‘price wars’ that have seen titles such as Call Of Duty: World At War, Fable II and Pro Evolution Soccer slashed have stimulated more games advertising from the likes of Asda, GAME and Tesco than ever before.
METHOD MEN To reach the £139 million figure, MCV collated information direct from publishers and retailers, as well as marketing data experts Nielsen Media Research. We also used figures from media ratecards, advertising agencies and trade insiders. Nielsen’s own research put Nintendo’s spend at over £4 million for November alone. MCV heard whispers that Microsoft had even matched certain publishers’ ad spends for individual products – but the company would not comment when questioned.
SCREEN TO BE BELIEVED: EA’s four-minute FIFA 09 ad was an example of the industry’s incredible marketing spend this Q4
Duncan Willett, trading manager on The Sun added: “We’re posting record weekly display advertising revenues at the moment and the reason for that is simple: The supermarket
value war. Obviously a large part of that is games. Our entertainment revenues are up 19 per cent year-on-year – and gaming has played an integral role in that rise.”
Trouvain heads home with head held high by Stuart Dinsey ACTIVISION BLIZZARD will lose its European boss in the spring, after two years of impressive turnaround. Joerg Trouvain is returning home at the end of March to be closer to his family, switching to a CEO role at German online travel company HolidayCheck. After a role as boss of EA Germany, Trouvain moved over to become president of
European publishing at Activision in April 2007. He took over with the publisher in dire need of revitalisation – from sales to trade relationships and even team spirit. Whilst clearly bolstered by an improved product portfolio, he has meticulously built up local teams, scoring particular success in the UK. With the help of general manager Andrew Brown and an aggressive sales and marketing strategy, Activision capped its
TROUVAIN: Activision Europe boss is leaving in the spring
progress by becoming number one UK publisher last month, with a market share of 18.3 per cent by value. “We have changed the perception of Activision and I must thank my wonderful team for all their hard work,” Trouvain told MCV. “I am now going home to my family, but I am sure that Activision can grow still further in the UK and Europe.” Activision has already begun the search for a successor.
The list of companies considered in our research included: Microsoft, Nintendo, Sony, Activision, Ubisoft, EA, Sega, THQ, Eidos, Konami, Bethesda, Disney, Warner Bros, D3P, Rockstar, Midway, Asda, Tesco, Sainsbury’s, Morrisons, WH Smith, GAME, Gamestation, CHIPS, Play.com, Amazon, HMV, PC World, Zavvi, Woolworths, Carphone Warehouse and more.
Retail keen on 2009 UK GAMES retail will overcome economic pressure and enjoy another profitable 12 months in 2009, according to this year’s MCV Retail Survey. 86 per cent of store managers insisted they were confident about their business in 2009, with only four per cent admitting to being concerned over the future. To read the MCV Retail Survey 2008 in full, please turn to page 14
PERSONNEL 34 RETAIL BIZ 35 NEW RELEASES 40 HIGH STREET 42 CHARTS 44