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Submitted by Crazyreyn 627d ago | news

Michael Pachter: "The UK games retail market is a joke"

The UK games market is a "joke", according to analyst Michael Pachter.

The Wedbush Securities managing director of equity research said that retailers' failure to make money on games has contributed to high street bankruptcies.

"The UK games retail market is a joke, with retailers pricing below cost to drive traffic," he told Digital Spy.

"That's great for consumers, but retailers can't make any money on games, hence the bankruptcies of GAME, HMV and Blockbuster, and the refusal of GameStop to expand into the market."

Pachter believes that US games retailer GameStop halted an expansion into the UK primarily because "games retail in the UK doesn't make money".

"If all retailers go broke, or if games are dominated by mass merchants like Dixons, gamers are ultimately going to get fewer selections," he said.

"The absence of GameStop and the demise of GAME limits the ability of consumers to trade in used games, depriving many of credits that can be used to purchase new... (Blockbuster, HMV, Industry, Michael Pachter)

miyamoto  +   627d ago
even in Canada HMV stores are closing left n right
Root  +   627d ago
""That's great for consumers, but retailers can't make any money on games, hence the bankruptcies of GAME, HMV and Blockbuster, and the refusal of GameStop to expand into the market."

One thing you need to realise though...Blockbuster and HMV were not Game stores....yes they sold games but there main focus was films (DVDs, Blu Ray, Steelbooks). HMV used to be a record store when it first started and Blockbuster was a film rental place

Game however was always a game store
#2 (Edited 627d ago ) | Agree(0) | Disagree(0) | Report | Reply
Mathew9R   627d ago | Spam
Dark_Overlord  +   627d ago
How can GAME not make any money from game sales? They charge the RRP and as such are the most expensive for games on the high street.

The problem GAME had/have is that I can go online and save £20 as long as I'm willing to wait for it to be delivered. That's what was killing them, lack of sales, and not that they weren't making any money per game.

The only joke I can see is you Pachter
#4 (Edited 627d ago ) | Agree(0) | Disagree(0) | Report | Reply

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