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Retail

Xbox: The ability to sell our console is critical

Xbox: The ability to sell our console is critical

Mon 25 Mar 2013 9:29am GMT / 5:29am EDT / 2:29am PDT
RetailHardware

Games on Demand manager explains release lags, highlights retailer importance

Xbox Games on Demand senior business manager Erik Yeager has talked about the delay between a game's release and its appearance as a digital product on Xbox Live, suggesting that relationships with retailers and the importance of consoles are a factor.

"We really strongly believe it's important to have these retail partnerships and the ability to sell our console is the most critical thing for us. If you don't sell the console, you can't sell anything else," he told MIT Business in Games conference, as reported by Joystiq.

"We have a lot of strong partnerships with retailers, we really need them to do a lot for us"

"We have a lot of strong partnerships with retailers. We really need them to do a lot for us. They're the ones out there selling the consoles, selling the peripherals and, in this time, we're trying to figure out how to fit that in to the whole digital landscape shift. We're just taking a bit of a measured pace with it."

Of course the real interest is now firmly focused on the future of the Xbox brand, with the announcement of the much discussed next-gen Microsoft console expected in the next few months.

5 Comments

Dave Herod Senior Programmer, Codemasters

528 788 1.5
"We have a lot of strong partnerships with retailers."

Sounds more like being held to ransom to me.

Posted:A year ago

#1

Nicholas Pantazis Senior Editor, VGChartz Ltd

1,021 1,470 1.4
Popular Comment
Translated to "retailers push our system more than our competitors because we prioritize business relationships over consumers."

Posted:A year ago

#2

Christopher Bowen Editor in Chief, Gaming Bus

461 754 1.6
I read a lot of noise in this article, signifying nothing. There's no content here...

Granted, that's what Microsoft wants.

Edited 1 times. Last edit by Christopher Bowen on 25th March 2013 6:39pm

Posted:A year ago

#3

Paul Jace Merchandiser

955 1,449 1.5
It's not only the fact that the digital version hits XBL much lately than when the retail version hits stores. It's also the fact that the digital version in some cases is released a full year after the retail version and will be listed for full MSRP. I don't even pay $60 for retail games on release(I shop for deals) so why would I pay $60 for a downloadable version(minus case, disc and manual) a full year later? Microsoft needs to seriously address these issues before launching the Next Box.

Edited 1 times. Last edit by Paul Jace on 25th March 2013 9:38pm

Posted:A year ago

#4

Blair Hewitt owner/operator, Game Play Canada

4 1 0.3
"strong partnerships with retailers" you mean "unbreakable deals with big box stores"

As an independent game store with no big box stores in the immediate area, I find this ridiculous. I try my hardest to get the consoles/accessories/games that customers are looking for. When I contact big companies I always get told to use distributors. Problem here is that the distributors are taking such a large cut that it is not feasible to carry most products.
Here's an example - consoles my price $1 under retail cost through distribution channels, new games are priced anywhere from $48-55. I cant afford to stock your consoles for a <1% profit. How are we to compete with big box stores or even have a sale? When a game takes a national price drop, we take a loss, so we are very selective on how many copies of a title we bring in. We try to use pre-orders as a scaling tool, but again these "strong partnerships" screw us again with big box exclusives.
As an independent store owner I do my best to provide a service to my constantly growing customer base, But more often than not its the companies that we try to support that make it such a challenge.

Posted:A year ago

#5

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