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Pinnacle falls into administration

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Pinnacle falls into administration

UK games distributor is latest victim of economic slowdown

Video games distributor Pinnacle Software and parent Pinnacle Entertainment have today lapsed into administration, MCV has learnt.

The company’s bosses were told the news this morning, and are currently in emergency meetings.

After being set up by MD Peter Sleeman back in 1992, Pinnacle Software went on to create the concept of ‘exclusive distribution’ – which soon became an industry standard.

Over the last 16 years, the firm has partnered with the biggest companies in games – and become one of the best-known names amongst the trade.

However, in recent years the Sidcup, Kent-based business has lost key distribution accounts, including EA to Centresoft and Ubisoft to Trilogy.

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This year, the company trialled a co-publishing model with developers – which saw it box, market and distribute products for studios. These included the first football management game on DS, Football Director.

Pinnacle Entertainment – which services the DVD and music industries – is also thought to be in administration.

:(

posted by Zildjian Dec 03, 2008 at 12:36 pm
1

That's really bad news.

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whos next ??

posted by henry ford Dec 03, 2008 at 12:56 pm
2
henry ford

ive already heard a few rumours of another games dist, but i wont comment on rumours, not looking good when you can buy cheaper from the high street, crunch time

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Pinnacle administration

posted by Phil Da Greek Dec 03, 2008 at 1:07 pm
3
Phil Da Greek

So now Pinnacle bites the dust... Following the loss of EUK, THE and that one in Watford whose name escapes me, there's only Centresoft and Gem (and I suppose Music Box - if you're cheap as chips) left. Bring back Leisuresoft and it could be 1993 all over again!

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Not good

posted by chris07 Dec 03, 2008 at 1:45 pm
4

Sad really and I have sympathy for the staff so close to Christmas. I have always maintained that the exclusive distribution model never served the Indies well and obscured who was really the customer of the distributor - the indie or the publisher.

Do I think things will change? No. The exclusive distribution model will bumble its way for another couple of years until the last surviving indies are buying exclusively from the high street.

There are better ways of doing this, but who is listening?

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Re: Not good

posted by bobo Dec 03, 2008 at 3:49 pm
5
bobo

I mean Pinnacle Entertainment are in administration.

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Re: Re: Not good

posted by PJ Dec 03, 2008 at 4:54 pm
6
PJ

End of the day, Pinnacle was one of the main dists when it had the Gauntlet sister company. They had Ubi, EA, THQ, VU Games, Midway and many more publishers on board. But slowly companies moved away from fulfilment distribution and sold stock to companies like Advantage and Centresoft instead. Leaving Pinnacle with no decent console publishers and stuck with poor PC publishers, which we can say is the main downfall.

Independent distys will be ok when times get tough, and so will indie disties like myself. We work close with customers and suppliers and can keep an eye on our business needs.

As for indies going to shops, only a few things are worth going to the nationals to buy. You will always get cheaper items from independent distribution. This week, we have been selling Motorstorm at £18, Farcry @ £25, End War at £20 and many more deals. A lot of indies out there stay official, and that is their biggest down fall.

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Pre-owned

posted by S Dec 03, 2008 at 5:29 pm
7
S

Sad news indeed...
... but with retail continuing to push the recycling of pre-owned games instead of sharing the money with the developers, publishers and *distributors* who give them a reason to exist in the first place, we should all expect to see plenty more stories like this over the coming years.
How can anyone survive with retail stealing all their profits?

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Re: Pinnacle

posted by games direct uk Dec 03, 2008 at 5:56 pm
8
games direct uk

its a shame to hear pinnacle are going but , as with all these big companys selling to indies if they can get their pricing right we look else where to buy stock at the right price, making £3.00 on a £40 game is just not enough. maybe the likes of trilogy ( ubisoft ) should take note now before its to late, farcry 2 was a silly price unless you took big numbers and lets face it who would want 20 units of endgame, for it to be stuck on the shelf. we need better margains on stock, and as for not being able to sell preowned games in the future, how would any indie stay in business for long with out preowned stock

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Re: Re: Pinnacle

posted by theone Dec 03, 2008 at 6:18 pm
9
theone

Well we would all like to make more money on the games but you just have to accept it isn't going to happen. Lower indie prices=nationals asking for lower prices so it would make no difference...the only loser would be the publisher...

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Re: Re: Pinnacle

posted by Bob Dec 03, 2008 at 8:39 pm
10
Bob

@ S
You are joking right?!
If you really think Pinnacle are struggling due to retailers selling used games I am really sorry for you.
The real reason why they are struggling is due to the loss of their exclusive accounts. If you don't have a product to sell, how can you sell one?
Distributors generally will find market conditions tough, the supermarkets are being given such a advantage by publishers over traditional game retailers that their remaining customers often find product cheaper at a supermarket than at a distributor. A sad and farcial situation.
@PJ
You've got some interesting prices, what company are you from?

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Re: Re: Pinnacle

posted by stuart Dec 04, 2008 at 12:06 am
11

PJ what is the name of your company prices sound good

john

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Re: Re: Pinnacle

posted by Northern monkey Dec 04, 2008 at 12:08 am
12
Northern monkey

This is sad news, I nearly ended up working for Peter when he set Pinnicle up all those years ago after just missing out on an Accounts Manager's job at Gem, really sound bloke. Guess it happens to everyone eventually, only the luckiest survive (or those with the biggest pockets anyway) I'm glad I'm out of it all now, £3 on a game, I used to think 25% margin was a bit tight!

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Re: Re: Pinnacle

posted by AINE READ Dec 04, 2008 at 9:03 am
13
AINE READ

OH IT IS SUCH A SHAME. THE STAFF HAVE ALWAYS BEEN HELPFUL AND WE WILL ALL MISS ALAN JONES,,,,,

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Re: Re: Re: Pinnacle

posted by tristan marsh Dec 04, 2008 at 11:44 am
14
tristan marsh

very very sad, have 3 or 4 mates that worked for the company. used to be an indie in a small town and made alot of friends through pinnacle. i only hope that this, along with THE and others, doesnt start a spiral up the industry ladder!

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Re: Re: Re: Re: Pinnacle

posted by Mary Tyrell Dec 09, 2008 at 11:19 pm
15
Mary Tyrell

Arvato that's who's next, Poor reputation and struggling for insurance. Just a matter of time

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Re: Re: Re: Re: Re: Pinnacle

posted by PJ Dec 15, 2008 at 1:29 pm
16
PJ

Sorry this is late - an indie just let me know that some of you were asking. Name is Keyne Distribution - 08701216051

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MCV is the leading trade news and community site for all professionals working within the UK and international video games market. It reaches everyone from store manager to CEO, covering the entire industry. MCV is published by Intent Media, which specialises in entertainment, leisure and technology markets

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