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WWW.MCVUK.COM
NEWS
[LEADER] BEST FOOT FORWARD Best Buy’s arrival in the UK comes at an ideal moment. The UK’s market value is in the gutter (see right) – albeit temporarily – driven down by a mix of a weak release schedule, postrecession caution, a lack of new hardware and the distraction of an election. Games’ heartland UK retailer GAME has seen some massive upheaval following a decline in profits (more on that on page 14). And some argue (see page 19) that we’re losing players to other digital pursuits. This is not a massive ‘Best Buy is here to save us’ proclamation, but it proves that retail must innovate and evolve to stay relevant. After our trip to its inaugural store this week, it’s clear this is not some grubby retail park outlet as, let’s be honest, the likes of the struggling PC World and Currys sometimes feel like inside. No, Best Buy’s stores promise to be impressive and of high-quality – the American outlet concept made
“Best Buy proves retail must innovate and evolve to stay relevant. Are you listening GAME, HMV and the rest?” real on British soil. And these UK versions even feature concepts and areas not present in their US counterparts. Indeed, the firm has been taking its expansion into non-US territories very seriously. They tell us that for months the exec games team has been slowly building, and instructing its growing team of in-store staff to pore through MCV to learn all they can about the market. It’s no leap to assume they have been closely watching their rivals, both those in out-of-town stores and on the High Street. The head office team are an experienced bunch themselves; entertainment boss Marc Spence boasts a retail background from GAME, DSGi and Home Retail Group, while their head of games James Cooke spent years working for EUK, WHSmith, Virgin, HMV and so on. Pre-owned, plenty of range, own-brand peripherals, and even ‘experiential’ elements - it’s all there. Opening big areas in store for consumers to actually play games is a key move. Hardcore happy Gamerbase it may not be, but it does encourage players to get hands on with things retail otherwise takes for granted, like the Balance Board or instruments. Even the PSP gets a proper showcase at the store we saw. Are you listening, GAME, HMV, and the rest? But even at a basic level, the sheer size of these stores, and the amount of space dedicated to games, is impressive in themselves – and are probably a sign of what’s to come in terms of how Best Buy grows its market share. Michael.French@intentmedia.co.uk
UK games market value Retail sales plummet to lowest level in four years Lack of new by Christopher Dring THE UK GAMES market’s weekly value has fallen to its lowest point in years, according to GfK Chart-Track. Last week the games market was worth £13.5 million, a 24 per cent drop compared to the week before. Unit sales also fell heavily, down 21 per cent to 650,382 games sold. Industry experts have been quick to cite multiple reasons for the fall. Chart-Track point out that it’s been a far quieter Easter in terms of new releases
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“Essentially it comes down to what is being released,” said Chart-Track senior account manager Chris Poole. “Easter was relatively quiet really, and many people will be holding back for the big titles to come. I also imagine it is a combination of things, such as the weather. “We’re also coming down from the big highs of Modern Warfare 2 and the like, it is understandable the market would hit an eventual low. “But aside from that, there are no big indicators for the
One impact on market value this year has been the paucity of new peripheralbased music games. Nick Parker, Parker Consulting
than previous years, while analyst Nick Parker suggests consumers are trending towards free-to-play social and casual games (see page 19). Meanwhile, CHIPS joint MD Don McCabe believes the General Election could be affecting consumer confidence, while the warm weather could also be having an impact by keeping buyers outdoors.
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reason behind the fall. Week 16 last year was a lot higher, and there were no major releases that week either.” Analyst Nick Parker added: “The market for boxed games software has been in decline for fifteen months now in Europe so we have to examine the whole market trend. “The bottom line is that more and more tweens and
teenagers are on MSN and Facebook playing social games, than they are playing core traditional games. “Another impact on market value this year has been the paucity of peripheral-based music games, which declined steeply from 2008. Finally, the recession has not helped.” A lack of new console hardware has also been blamed.
Gamesfives back for World Cup THE HUGELY popular Xbox 360 Gamesfives tournament will take place on Wednesday, June 23rd at the Barnet Powerleague. Teams representing all sectors of the industry will compete for the coveted trophy (won by D3P last year) in the morning. They’ll then set their differences aside for an afternoon of beers, hog roast and, hopefully, a big screen England victory against Slovenia in their last group game (kick off, 15:00). There will also be a Virtual World Cup competition on EA Sports’
football title FIFA World Cup 2010 South Africa. Demand for team places is high, so if you want to be considered for inclusion please
register as soon as possible at www.gamesfives360.co.uk. Xbox UK’s 3PP marketing manager Andy Irving said: “With the World Cup rolling around again this year, football will be at the top of most people’s agenda this summer – and we’re thrilled to bring back the MCV & Xbox 360 Gamesfives Tournament to celebrate this fact. “The event will be a tighter and more hotly contested affair than previous years. “We look forward to seeing you on the pitch and for a few – hopefully – celebratory drinks.”