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The UK video games market is a “joke” Wedbush Securities analyst Michael Pachter has claimed, blaming software price cuts for the bankruptcies of numerous high street retailers.
“The UK games retail market is a joke, with retailers pricing below cost to drive traffic,” Pachter told 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.”
According to trade magazine MCV, the UK games market fell by 17.4 per cent to £1.598bn in 2012, falling faster than both the music and video entertainment sectors combined.
And the decline in games retail appears to be making a notable dent on new releases.
Earlier today, it was revealed that Dead Space 3 sold 26.6 per cent fewer copies during its launch weekend than its 2011 predecessor.
“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,” continued Pachter.
“Retail needs to make money to exist, and games retail in the UK doesn’t make money.”
Source: Digital Spy
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