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Pachter: "UK games retail market is a joke"

"Retailers pricing below cost to drive traffic," says analyst

Wedbush Securities analyst Michael Pachter has called the UK games retail market "a joke," with prices pushed so low that the market has become unsustainable - forcing companies like HMV, Blockbuster and Game into administration.

Speaking to Digital Spy, Pachter poured scorn on the pricing policies of the country's highstreet chains, also claiming that the problem has been exacerbated by a dearth of opportunities for customers to sell on second hand games, limiting their funds to spend on new games.

As well as blaming these policies for the decline of existing shops, Pachter believes that it's this situation which has prevented the arrival of overseas chains on Britain's streets.

"Retail needs to make money to exist, and games retail in the UK doesn't make money."

Michael Pachter, Wedbush Securities.

"The UK games retail market is a joke, with retailers pricing below cost to drive traffic," he said in the comment to Digital Spy. "That's great for consumers, but retailers can't make any money on games, hence the bankruptcies of Game, HMV and Blockbuster, and the refusal of GameStop to expand into the market.

"If all retailers go broke, or if games are dominated by mass merchants like Dixons, gamers are ultimately going to get fewer selections. The absence of GameStop and the demise of GAME limits the ability of consumers to trade in used games, depriving many of credits that can be used to purchase new games. Retail needs to make money to exist, and games retail in the UK doesn't make money."

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Dan Pearson

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