Koch: There's "too much" DS product out there
Klemens Kundratitz outlines his concerns over prices being forced down
Koch Media CEO, Dr Klemens Kundratitz, has told GamesIndustry.biz that he believes there are too many casual and DS titles in the market between now and Christmas, and that he is concerned that pricing will fall for DS titles as a result of other companies over committing.
"We're all faced with too much casual and DS product between now and Christmas, so we're also the victim of that," he said in an interview at Game Connection in Lyon. "But I think that in spite of the economic worries we as an industry can be quite confident that we're not affected in too abrupt a way.
"However, I have my worries about the street pricing of Nintendo DS products for next year, and I hope that we aren't seeing companies that have overcommitted on this platform, and are slashing prices - thereby making the business model unattractive for everybody."
Kundratitz admitted that the 'gold rush' on the DS platform was somewhat inevitable, and that he was glad that Koch Media would be able to leverage its distribution connections to ensure good retail placements for its own products.
"It's a free economy, everybody makes their own assumptions, and if a platform is so enormously successful, everybody wants to have a piece of the action," he said. "In hindsight you're always wiser, but it's not something that anybody could have foreseen.
"I think I would be in a much more nervous state right now if I had to rely on third party partners to put my products on the shelves. It's always been my viewpoint that you need to have the channels open in the key markets, and once we have those channels open - and that's now including Spain since the summer, and now also in the US - you can then invest in long term projects and strong products.
"In times where shelf space comes at a premium it's always those companies with the better retail contacts which will benefit. That will also be part of the consolidation, that people without that strength and reputation of being a reliable partner for retail will have it more difficult."
The full interview with Dr Klemens Kundratitz is available now.