News
HMV: 'We're replacing CDs with games'
Ben Parfitt & Tim Ingham Dec 10 2007, 5:59pm
Comments (14)
Chief executive Simon Fox wants retailer to be a ‘real magnet’ for gamers
Having earlier today confirmed the opening of its first LAN gaming centre at its flagship Trocadero store in London, the chief executive of HMV Simon Fox has said that gaming is set to replace the likes of music as his chain looks to future growth.
Speaking to The Daily Telegraph, Fox stated: "Big picture, if you look over the next three years, what we have said is that the CD market will decline by ten per cent per annum, so we need to replace that with higher-growth categories: games, technologies, band merchandise.
We need to respond.
"For HMV we are already a natural destination for music and film, we want to become an equal destination for games, and this is about making our stores a real magnet for gamers to come and play and buy.”












Comments
“COOL”
Posted: Dec 10, 6:15pm
go for it. some competition for ****py GAME.
“Re: COOL”
Posted by: scottmpamp - Dec 10, 6:36pm
mmmmm.....is this the right strategy long term...what about digital downloads becoming more prevalent in the future ?:
“HMV is a dying breed.”
Posted by: Zed Zee - Dec 10, 10:09pm
What HMV mean is that they're now getting desperate, because music sales are slowing down. Not because people are not buying CDs but because they're pirating them off torrent sites and other P2P technologies.
So, they're turning to games and getting cosier with gamers, but unfortunately, that also is a changing market, with the likes of EA, Sony and Microsoft just itching to have a working (by that I mean secure) digital download process as they can reduce their marketing/packaging costs by a truck load and make more profit.
When this happens, it will leave the likes of HMV simply selling t-shirts of Master Chief and Solid Snake!
“Re: HMV is a dying breed.”
Posted by: Onehunglow - Dec 11, 9:55am
I can't remember the last time I spent so much money with HMV. Its my first choice for PC games. Their stores have the best range than ANY GAME store out there.
Thumbs up!!!
“Re: HMV is a dying breed.”
Posted by: Nipper - Dec 11, 10:01am
HMV are the market leaders in Music, Games and DVD's. Virgin have now changed their name to Zavvi.....what's that all about and what a **** name.....go for it HMV
“Re: HMV is a dying breed.”
Posted by: Wozza - Dec 11, 11:00am
People still like to have a box and disk, the same as CD's so I I think HMV are here to stay for a long longtime.
“Re: HMV is a dying breed.”
Posted by: Zed Zee - Dec 11, 1:19pm
@ jigglybean: I really can't see them putting up pods of PCs in their Trocadero store. Besides, the best/widest range of games is always found on the Web, not in stores. Surely everyone realises that by now?
@ Nipper: "Market leaders" in a dying segment. It's obvious where the likes of Sony and Microsoft are heading and that will leave HMV out in the proverbial cold. I agree that, if indeed that's what Virgin have done, it is a stupid move, but isn't that because it's changed hands?
@ Wozza: Given a choice, people would accept/download a pirate copy o***ame, it's manual and the cover, if it's all available on a torrent site! That's a fact that MCV should not be skirting around and should tell it as it is. I would personally love if vinyl made a return to its glory days...but hey, even I know that's not possible anymore, so let's stop pretending that 640MB/4.7GB is enough anymore!
HMV are moving to promoting games more because they're finding that CD/DVDsales are declining in their traditional formats, so what can they do to combat this?
Oh, I know, let's try to copy an established reseller like GAME, who's too busy buying out GameStation as we speak to porbably notice, until it's perhaps too late.
Who knows how it will go with all this jostling for new positions. I don't care who's who and how you get games in the future, there might be a market for both kinds (package and download). I just don't like all this 'keep it in the closet' attitude towards what's REALLY going on.
“Re: HMV is a dying breed.”
Posted by: Onehunglow - Dec 11, 4:03pm
I suggest you look in their stores. They have 300% more space for PC titles than any GAME store I have seen in London. I'm not a console gamer, so to me, this is important and because they support the PC format in this way, means I spend my ££ with them on or offline.
“Re: HMV is a dying breed.”
Posted by: Richard Branson - Dec 11, 4:14pm
Zavvi bought Virgin Megastores. Branson got out and took a few million with him... wise move...
“Re: HMV is a dying breed.”
Posted by: Nipper - Dec 11, 5:22pm
HMV is the and always will be the best entertainment retailer on the high st - Zavvi (naff name!) is **** and Game are hopeless - HMV has the best range of all music dvd and games retailers and will not I'm sure get rid of cd to make way for games
“Re: HMV is a dying breed.”
Posted by: scottmpamp - Dec 11, 8:38pm
People will certainly take to the download of video games once it becomes a fully viable source. Saying that people will continue to "prefer to buy games for their packaging like they do CD's" is in complete contradiction to why HMV are having to change their sales strategy in the first place - it is because people are no longer buying CD's for their cases from high street retailers that they are having to refocus, so saying this does not make any sense.
The poor thing about this strategy is that it is reactive to the industry and does not seem to show any long term focus. HMV appear to be caught up in the current "video games boom" where it is now seen to be much more mainstream than in years gone by, and are hence jumping to some extent on the bandwagon. However, they fail to consider the video game industry at large.
I personally don't know what the key source of video games will be in the next few years, whether it be high street retailer or online marketplace downloads - the problem is I dont think HMV do either and such a strategy is a short term reactive strategy that fails to show a solid level of insight into what is a dynamic changing industry.
“Re: HMV is a dying breed.”
Posted by: Zed Zee - Dec 11, 11:10pm
@ jigglybean: I cannot believe one can have so much blind loyalty, when the whole point is to shop around and get the cheapest price for what you're looking for, surely?!
Found any PC pods in HMV lately then? Doubt it and don't hold your breath either.
I don't get it. You're happy to pay more because you can SEE the PC games package in HMV, whereas you won't buy it on-line cheaper!
At least GAME have game enthusiasts and gamers working for them. They can tell you al labout a game, point parents to decent, safe games for their children and get all excited when you even mention anything remotely near "I think the PS3 will win" or "Nintendo s-u-c-k"! They love talking about console wars and games and stuff like that.
When was the last time you had a vibrant conversation with a hung-over, rocker/punk/indie bloke working at HMV?! What good is the "floor space" if all they do is cram the same game on shelf after shelf - what good is it to merely SEE and FEEL the empty box o***ame?!
Perhaps you have shares in HMV...
@ scottmpamp: I completely agree with you...HMV are running scared and this is a very late and pathetic knee-jerk reaction to a rapidly changing market that's heading fast towards digital downloading.
“Typo!”
Posted by: Zed Zee - Dec 11, 11:14pm
That last line should read: "what good is it to merely SEE and FEEL the empty/secured box of a PC game?!"
“How Stupid”
Posted by: Don - Dec 13, 12:15pm
How stupid can this man be
Telling his largest compeditor on the uk high st that he intends to take market share from them next year
Not a good idea!!! for the long term future of HMV
Game have already said that gp will be down by the end of the year
And 1 good reason would be that they intend to take this guy down a peg or 2