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MCV INTERVIEW SIMON FOX, HMV, GROUP CEO AND UK AND IRELAND MD However, bit-by-bit, games are moving out of the bedroom and into the living room – which represents an opportunity for us given the reach that we have. Fortunately we’ve been able to grow our games proposition without undermining the integrity of our core music and DVD offers. Games sales are set to pull away from those of music, but it will take quite a while longer for the same to be true for DVD. Following your recent acquisition of Gamerbase and the move into preowned, are you now ready to compete with the likes of GAME? The short answer is yes, though we still have a little way to go to match them on share and market penetration. We’ve actually thought of ourselves as being a games specialists for a while now, but given our recent move into pre-owned
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store operation and IT just right so that Re/Play fits in smoothly into our wider product offer – especially in the run-up to Christmas, when there are so many people coming into our stores. We’ve also needed to bring our partners along on this journey, and to support the offer with a compelling marketing communication to make it stand out in the marketplace. Have you encountered much opposition with Re/Play? Not as much as some reports suggest. Of course, it was met with a bit of a mixed response in some quarters, but we made a point of keeping our key partners up to speed and involved. I’d say they’ve been broadly supportive, as they understand it was something we had to do – especially as our key rivals already have a pre-owned offer.
A pre-owned range is something we had to do – especially as our key competitiors already have a similar offer.
and the Gamerbase acquisition, I hope this will be seen as the ‘last piece of the jigsaw’ of a comprehensive and compelling games offer. It’s particularly important that publishers and distributors see us as a specialist, as I want them to appreciate the potential that HMV can offer them in expanding the market. Consumers no longer buy CDs, DVDs and games in isolation – the chances are that the same customers will want access to all three. We’re in a unique position to open up the games market to the millions of customers of all backgrounds. However, while our offer has a universal dimension to it, it’s implemented in a specialist way. What has been the biggest challenge in your Re/Play range? I’m proud of how we have developed and implemented our pre-owned offer. All parts of the business have contributed in some way. It’s been a great company effort, especially at a time when there is so much else going on. Obviously, there have been many things we’ve had to think about, but the key challenge has been to get the in
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I’d say to any doubters that I firmly believe Re/Play will help open the market to the wider customer-base that comes into our stores, and that we all stand to benefit in the long-term. The recent price cutting has been quite severe. What are your thoughts on this situation? I’d caution everyone against the vicious price deflation that we have seen in other entertainment sectors. Once you start on a downward spiral it’s hard to stop it, particularly as it feeds consumer expectations who just keep wanting premium products for less. You just end up devaluing it in the eyes of consumers and undermining the aspiration that rightly exists around purchasing it. Finally, how do you visualise the future of the gaming industry? We have an optimistic view of the gaming industry and its future prospects. We feel the market can continue to grow as it increasingly connects to a wider, more mainstream audience, especially as publishers have shown they are capable of delivering even more amazing product and content.
INSPIRATIONAL MARKETING HMV’s growing commitment to games has seen it spend an increasing amount of time and money on unique marketing incentives, including its huge Re/Play push, the ‘My Inspirations’ marketing campaign and specific game launches. “Games are already benefiting from significantly increased marketing investment – they’re now integrated as a key part of our customer engagement and advertising,” says HMV Group CEO and UK and Ireland MD Simon Fox.
“We’re keen to connect with gamers on a more emotional level, with ‘My Inspirations’ ads with Hideo Kojima and Will Wright.” “I know we’re especially keen to connect with gamers on a more emotional level, as we have done with music and DVD, and we’ve already run quite a few cool ads to this end, including ‘My Inspirations’ with Hideo Kojima and Will Wright. We’ve also started running brand ads for games, such as the one we ran after the launch of Metal Gear Solid 4 at our Oxford Circus flagship store. In that we featured fans who attended the Metal Gear Solid event in Metro and Games TM.” “Of course, our stores are really well suited for staging official games launches and events that can generate extensive publicity for the Industry. Aside from our Metal Gear Solid event, I’m sure few people will have missed the recent World of Warcraft midnight launch in Oxford Street.”