News
GAME explains self-publishing strategy
Stuart Dinsey Jul 3 2008, 11:48am
Comments (4)
Leading retailer says it will continue to explore own brand opportunities, but infrequently and only with niche titles
GAME told MCV this week that it reserves the right to challenge retail and publishing boundaries with ‘own brand’ initiatives – but has promised there is no pipeline of products on the way for Christmas.
A level of hysteria has been growing amongst publishers with rumours that GAME had already lined up a number of titles to follow recent test titles on PC and Nintendo DS.
But the chain has moved to calm any unrest by being candid about its on-going strategy.
“If an opportunity arises and we think it could be a good proposition for both us and the consumer, then we will explore it. But it is not as if there are many products planned,” GAME’s UK and Ireland managing director Tricia Brennan told MCV.
“This isn’t about us doing something that threatens publishers. It is about listening to developers who may come to us with titles that may not otherwise be able to get to market.
“If it works commercially for GAME and helps a smaller publisher get off the ground by GAME sharing some of the risk, then we would look at it – we have a distribution channel and we can offer a service.
“As a specialist, we need differentiation on the High Street. Exclusives are a real positive for us. We have already published driving test and anti-virus titles as own-brand, plus Vegas Casino on DS.”
Exclusives have been used by retailers in the games market for the past 20 years, but publishers are keeping a close eye on direct deals with developers.
“They have to be very careful. Us publishers already feel aggrieved by the fact that we lose out on the huge revenues created by trade-in sales,” said one boss. “If any retailer were really to go for it with own brand games, it would be an act of war.”
Whilst major publishers will less threatened by retailers picking up niche titles and bringing them to market, smaller outfits are less assured.
“What GAME or Tesco are doing is effectively what we do – bring titles to market, get them localised, and through format holder approval. But it’s hard for us to compete if a powerful chain can offer better terms and guaranteed retail distribution,” said one small Nintendo licensee.
Comments
“time to hit back”
Posted by: Onehunglow - Jul 3, 1:08pm
I think its about time more gaming was moved to digital distrubition. Its going that way slowly. Finally the music industry caved in and we need the same thing to happen it.
If PC software download sales (which aren't counted but according to earlier news yielded $7 billion alone last year) bricks and motar stores could become as rare as a post office!
“Re: time to hit back”
Posted by: ka0znrky - Jul 3, 1:20pm
@Onehunglow: Digital distribution is far off, they can't regulate it properly atm. The music industry caved in because they were losing money to piracy, they are only moving in that direction to try and keep up but they are not actively trying to create a digital distribution model.
For PC games however things are much better, especially with systems like Steam. But I think we'll be waiting a while for it to happen with current gen machines as never mind regulatory problems, there just isn't enough space.
GAME are taking the next logical step by cutting out the publishers (well not just yet but thats where its going) so that they can compete competitively with stores like play.com and amazon.
“Woah!!”
Posted by: MyshopinYork - Jul 3, 2:37pm
Read between the lines here - game is going to self-publish DS software?! Ha! I wonder what Nintendo/Ubi/EA REALLY think about this...
“Re: Woah!!”
Posted by: Scouser - Jul 3, 3:43pm
What diffrence does it make to Nintendo/Ubi/EA if Game publisher there own games just another competetor.
The thing for me is that Game have weight behind them when it come to returns and write downs. They will be masters of their own destiny plenty of margin no returns shops filled with crap £19.99 titles that will end up in 2nd hand bins. What will Nintendo/Ubi/EA think nothing as they hold the best licences and best developers. A bit like Tesco's no frills. This is a massive willy waving exersice.