Are Retailers Actually Screwed?

There’s an interesting article on Greg Costikyan’s blog comparing the business model of game retailers to retailers in other fields and the consequences on the industry. From the article:

“In book publishing, say, a small publisher like Four Walls Eight Windows might well be able to persuade the buyer from Barnes & Noble that a new book they’re publishing is a potential best-seller, and get them to give it a little promotional push–B&N will benefit if it does indeed sell, because they make money by selling books, not by selling shelf space.

In game publishing, by contrast, the retail buyers have no incentive to make similar decisions; since their product is shelf space, the main thing they care about is selling that, and EA has bigger pockets than, say, Strategy First. Might a new game from Strategy First be a potential best-seller? It might–but unless they can scrounge up enough money to pay substantial [product placement], it’s pretty likely to get lost in the store.”

3 Responses

  1. Charles E Hardwidge Says:

    I’ve been thinking, for years, that game retailers have no reason to exist and that proper competition doesn’t exist. Walking through my local game stores, they just look like concrete boxes full of stuff. Their merchandising is poor on its own terms, customer relations is a little take it or leave it, and their overall value seems overblown.

    Like game design and marketing, retail seems stuck in its own world. It’s this way because it’s always been this way, and staff, developers, and customers are too conditioned to step back and challenge how things are. If you challenge this you end up generating lots of hand waving. Of course you do - people don’t like change.

    I’ve always thought that bookshops would be better places to sell games and videos. DVD cases, shelves, and the whole backend system is compatible. In fact, I’d be happier selling my current project in a bookshop than going anywhere near a game shop. Indeed, selling children’s games in toy shops seems more appropriate.

    Game retailers – who needs them?

  2. Pierre-Alexandre Garneau Says:

    Well, a lot of people still buy their games exclusively in brick and mortar shops. How do you propose retails shops should be improved?

  3. Charles E Hardwidge Says:

    Many of the key points are shared between developers and retailers. Level design and floor design, game characters and shop assistants, and the overall value or satisfaction, of games and shops are generic factors. I think, paying attention and being less prone to blindly following fashion can be helpful. Ultimately, it’s a judgement call.

    Getting more specific, most game retailers spaces are too box like, giving the impression of a concrete tunnel. Games presentation is a bit blank or obscure, with walls of manic colour or difficult to read edges. Staff presentation and people skills are variable to showstopper, due to poor training and development.

    If I were to propose an alternative model, I would look at intermingling games with other media, which breaks the flow and allows different flavours to blend, and look at adding private and social space, such as seating or a café. This is a more organic and longer-term approach that requires both thinking and feeling.

    Games retail, like development, has to find its own voice.

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