Are video games the next for merged Dixons and Carphone Warehouse?

Electronic giant Dixons hopes to become a major player in smartphones via a proposed merger with Carphone Warehouse.

The firm is already a major player in other electrical goods and one insider told MCV that should the deal go through, Dixons would consider turning its guns on gaming.

Dixons is No.1 in TVs, PCs and white goods. After mobile, the only place left is gaming,” he said. The UK games market is worth around 3bn – it’s a huge opportunity.”

Retail analyst Nick Bubb says the merger makes sense for Dixons, but is not sure for Carphone Warehouse.

In a world of connected devices, Dixons is under-exposed to the key area of smartphone retailing and it is known that they were looking at getting more involved in the area,” he said.

Carphone remains a customer-led service business, which is what the new Dixons is trying to be. A deal with Carphone would undoubtedly boost Dixons’ service credentials, both in the UK and Scandinavia.

It is slightly harder at this stage to see what’s in it for Carphone. But Charles Dunstone is extremely shrewd, so Dixons will need their best negotiating team around the table.”