New genres prompt GameStop to rethink in-store sales

The rise in popularity of new genres of gaming has forced US retailer GameStop to seriously rethink its strategy of selling games in-store.

Casual gaming, licensed children's titles and the growing popularity of music games such as Guitar Hero have prompted the retailer to open up its bricks and mortar stores to a more varied and educated consumer.

"Honestly, we are having to retool the way we think of things in our stores in terms of merchandising, layout and also customer service because it is no longer only the hardcore gamer walking in who knows exactly what he wants," said Daniel A. DeMatteo, COO of GameStop, in an interview with the NY Times.

This holiday season, GameStop is establishing two new sections in its stores. The first is a dedicated area for music games, to showcase the likes of Guitar Hero, Rock Band and SingStar. Music titles may be generating extra revenue via downloadable content, but they are also more lucrative as they sell at higher RRPs that regular videogames.

The other area is a family friendly section to help push licensed content aimed at the younger player and parents looking for gifts.

The retailer has also said that of all the home consoles on the market, only Sony's ageing PlayStation 2 is the one geared to consumers on a smaller budget.

"There's only one real value videogame machine out there now and it's the PS2, especially since Microsoft gave up on the original Xbox and Nintendo gave up on the GameCube," said DeMatteo.

"And if and when Sony lowers the price to USD 99, I expect we will still be selling PlayStation 2's in 2010," he added.