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THE MARKET FOR COMPUTER AND VIDEO GAMES
Issue 521 Friday January 23 2009 £3.25 10 2008 CHARTS: FULL ANALYSIS
02 The Q1 onslaught Retail braces itself for a swathe of new releases in February and March
The full year listings go under the MCV microscope
04 HMV’s ‘best ever’ trading
14 Championship Manager
Entertainment retailer’s CEO toasts success of Christmas games push
We speak to UKeSA head Ray Mia about the rise of competitive gaming
05 Awards momentum builds
16 Northern Lights
Lobbying opens, sponsors signed and host named for April’s MCV Awards
Our monthly territory report covers the Benelux and Nordic regions
EVERY BUYER EVERY BRANCH EVERY INDIE EVERY WEEK
INCORPORATING
Give us some credit! Publishers’ nerves on edge as credit insurers drastically reduce cover against Blockbuster, DSGi and more by Tim Ingham THE UK High Street is battling to prevent a nationwide games stock shortage – as credit insurers cut cover against the industry’s biggest retailers. MCV understands that credit insurers including Atradius, Coface and Euler Hermes have slashed cover on stock sold in to some retailers – including Toys R Us, Blockbuster, Comet and outlets owned by DSGi, such as PC World, Dixons and Currys – following a New Year review. That leaves publishers and platform holders – still reeling from credit insurance being swept away from Woolworths and EUK last year – in the
tricky position of dealing with hugely reduced credit limits or on cash terms with the chains. At least two publishers have reduced or cut off stock supply
“
these retailers all have an offering you can’t get elsewhere on the High Street. But the bolts have tightened on the credit limit we give them.”
Alarm bells are starting to ring. After Zavvi, EUK and Woolies, it’s getting ridiculous. Publisher sales boss
from some of the troubled retailers, MCV understands – with others warning of “alarm bells” for their sales teams. The UK boss of one top ten publisher told us: “After the Christmas boom, everybody worries. We’re not planning at the minute for a disaster –
”
The sales chief of another publisher added: “It’s getting ridiculous – who’s left to sell to if you can’t get credit on this lot? GAME and the supermarkets. Alarm bells are starting to ring. It couldn’t come at a worse
time after Woolworths, EUK and Zavvi’s collapse.” However, the founder of a key trade business called for calm when contacted by MCV. He said: “The Woolworths situation has given publishers the jitters. But this doesn’t necessarily mean others are about to go pop. It’s blatant that the credit insurance guys want to get out of our industry and focus on
dog food and shoes. Go back to Christmas 2007: no-one was giving HMV insurance and everyone was nervous. But they’ve turned the corner and are posting best-ever results.” Comet and DSGi both told MCV that the reduction in credit insurance hadn’t affected trading with suppliers. Toys R Us and Blockbuster could not comment when contacted.
DSGI’S TROUBLES In November, Currys and PC World owner DSGi announced that it had been hit with a £29.8 million pre-tax loss for the first six months of the year. Earlier this month, it announced that like-for-like sales for the two weeks ending January 10th had fallen by ten per cent. However, the firm did add that the performance of its new look stores “exceeded expectations”. It remains committed to making £95m worth of savings in 2009.
Key releases like Killzone 2 will boost retail – but some retailers are struggling with credit limits
Best Buy picks dream team City’s Campbell coup by Christopher Dring THE PLANNED UK invasion by Best Buy continues this week, as the firm finalises its games team. Former GAME exec Marc Spence has joined the US electronics retailer as head of domain for entertainment, where he will cover all games systems and console software. Spence joins from Home Retail Group, where he was head of strategic development. Previously, he held the role of GAME Group MD for
Continental Europe for four years, and before that was group buying director for games at DSG International. Best Buy Europe has also recruited René Wright as head of domain for IT products.
Wright signs up from DSGi, where she was employed as head of trading for entertainment. She was also a member of MCV’s Retail Advisory Board. In her new role, Wright will take control of IT hardware, peripherals, PC games and non-games software. Finally, former DSGi trading manager Tom Guy has been snapped up as group head of product and category development. All three new recruits joined Best Buy Europe this month.
by James Batchelor AMBITIOUS DS AND PC publisher City Interactive has its sights set on expansion, after hiring former THQ UK MD Roy Campbell as global sales and marketing VP. Campbell brings more than two decades of experience from the likes of THQ, Rage, Virgin and Infogrames UK to the Polish firm, where he will be developing sales and marketing strategies and activities around the world.
“It’s an exciting time for me to join City Interactive as they enter a new phase publishing in the console market,” said Campbell (pictured). “The time is right to exploit the huge increase in installed bases with quality products at the correct price.”
PERSONNEL 20 RETAIL BIZ 21 NEW RELEASES 28 HIGH STREET 30 CHARTS 32