Mark Androvich
08:00 (BST)
27/02/2008
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UK retailers: 2007 was fantastic
Disagreement over need for price cuts
UK retailers overwhelmingly agree that last year was a banner year for the videogames industry.
Speaking to GamesIndustry.biz, a number of different retailers noted last year's strong software lineup but disagreed over the need for price cuts.
"The range and innovation now available in the market is phenomenal, and customers are delighted by the choices now available to them," said GAME commercial director Tricia Brennan.
"The whole industry from developers, to publishers to retail did a fantastic job in growing the market, but the industry cannot get complacent and must continue to innovate and capture consumers imagination - as there are more options for consumers to spend their entertainment pounds than ever before," noted Patrick Kelly, Zavvi's head of games.
The Wii and DS were successful despite supply issues, whereas the PS3 had ample hardware available from day one according to retailers.
With regard to software, there was a wide range of titles available in 2007 to cater to every audience. Retailers also noted that the publishers staggered their release schedule more than they have done in the past, making Q4 less congested.
When asked whether or not they felt that retail price points should be dropped, there was no uniformity of opinion.
Kelly felt that there was an opportunity to prolong the life of the PS2 with pricing changes, whereas HMV's head of games Tim Ellis thought that certain formats don't need price drops as the supply continues to lag behind demand.
"Dropping price points may sell more units but if there isn't any revenue to put back into creating products then innovation will eventually be stifled," said Play.com head games buyer Gian Luzio.
"It's all about perceived value and above all a great customer service," added tgrav.com's Matt Holland.
Part one of our discussion with UK retailers can be read here.
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