Distributor Funtastic has backed out of the Australian games market.
The supplier will now focus on toys and DVD.
The decision follows tough economic conditions in the territory, and the firm doesn’t expect things to improve moving forward.
“The decision to exit games was made based on sustainability and profitability for the future,” said business manager Gavin Wulfsohn.
“2009 was tough and 2010 doesn’t look much different. Retailers are still justifiably being cautious.
“I believe the days of a software-only distributor in this territory have passed – the margins are too small.”
Funtastic distributed its last game – Alice in Wonderland – in March.