Supermarkets now the cheapest place to buy games; Average game price climbs

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The average selling price of video games last year was 26.45, a rise of 3.2 per cent year-on-year.

Chart-Track data published by ERA shows another year of game price rises. Supermarkets are now the cheapest games retailer, with an average selling price of 25.50, an increase of two pence over 2011.

They have overtaken online retailers, who have seen their prices rise by almost 2 from 23.56 to 25.52. This is driven by the closure of the Channel Island Tax loophole in April last year. The loophole had allowed etailers to avoid VAT on games under 15.

Specialist and independent outlets remain the most expensive for video game software, with an average selling price of 27.82. That is an 81 pence increase over 2011's number of 27.01.

Supermarkets and online retailers make slight gains in 2012

The market share between UK games retailers only changed slightly last year, despite the loss of major specialist stores.

According to Chart-Track figures published by ERA, the over-the-counter market – which includes all High Street retailers from Argos to GAME – took a 42.5 per cent market share of software revenue last year. That's a drop of around 4.5 per cent year-on-year. It follows the loss of a number of specialist stores, including 277 GAME outlets.

Supermarkets and online retailers both increased their market by just over 2.5 per cent as a result.

Supermarkets is the second largest sector with 29.5 per cent of the market, while online retailers hold a 28 per cent share of the sector.