Luckily it is only Gamestop so far, but still.................
GameStop shifts merchandizing focus to mainstream consumers
By Frank Caron | Published: January 23, 2008 - 10:15AM CT
The shift towards the casual market was felt in significant ways throughout 2007, leading to record growth. Following this trend, word has slipped that major game retailer GameStop is looking to refine its focus, targeting the mainstream consumer.
Directly relating the newfound focus of GameStop to the demand for Nintendo platforms, Lazard Capital Markets analyst Colin Sebastian noted that Gamestop's "...management indicated that the company is making progress in broadening its consumer base as video games move into the mainstream, and there is broad consumer demand for Nintendo platforms (Wii and DS)." As a result, the company will make "merchandising to a broader consumer... a strategic priority for GameStop into 2008."
For GameStop, the casual market likely appears to be an untapped source of revenue free from the jaded gamer who may be unwilling to trade in software or fall for the "gameplay guarantee" and other various shenanigans the company uses to generate its profits. Alas, with a greater focus on the mainstream market, preordering those rare titles may have just gotten all the more important if there's going to be less room on the shelves for software that won't sell in the millions.
In an effort to maximize sales, GameStop will cater to the growing casual market at the expense of (some) traditional games.
"Management indicated that the company is making progress in broadening its consumer base as video games move into the mainstream, and there is broad consumer demand for Nintendo platforms (Wii and DS)," said analyst Colin Sebastian in a note to investors, following a recent meeting with GameStop executives who were presumably wearing stuffy suits.
"We note that merchandising to a broader consumer audience will remain a strategic priority for GameStop into 2008," said Sebastian, adding that the game retailer will devote exclusive sections for more accessible games.
Without saying it, the new focus will come at the expense of fewer hardcore games. Due to the limited shelf space of brick and motor stores, poor-selling genres (or at least ones with fewer prospects) will likely be on the chopping block.
Gaming retail giant GameStop has indicated it will shift its marketing efforts to more casual gamers in 2008, as the industry sees mainstream acceptance continue to grow.
A Next-Gen report quotes Lazard Capital Markets analyst Colin Sebastian as saying that while GameStop currently focuses on the more hardcore gaming market, which tends to buy products at higher prices than casual gamers, the company intends to broaden its efforts to reach a more mainstream audience in the coming year. Executives with the company have already said that casual and family games would receive special sections within their stores.
"Management indicated that the company is making progress in broadening its consumer base as videogames move into the mainstream, and there is broad consumer demand for Nintendo platforms (Wii and DS)," Sebastian said. "We note that merchandising to a broader consumer audience will remain a strategic priority for GameStop into 2008."
He also added that despite the economic slowdown in the U.S., management feels the company is in "good shape," and that a focus on pre-owned games will appeal to "budget-minded" consumers as the demand for software takes precedence over next-generation hardware purchases.
Gamestop will have quite a bit of trouble focusing on Nintendo's consoles because Nintendo makes so freakin few of them! For the last 12 months we've been getting an average of 6 Wii's every two weeks, which sell out within hours of arriving. Since Christmas, Nintendo seems content to let us run with absolutely zero Nintendo DS's in stock.
We already have a "family game" section. It's a ratty little section next to the PSP section that no customer ever approaches.
Dr. KillGood wrote:I have come to the conclusion that the Wii console is a myth, as I have yet to see more then 1.
I see a Wii every day. And last weeked I saw four Different Wii's over the span of 2 days(Not including mine). And played 3 of them, the one I did not play. It's controller was dead. So to me, The Wii is not a myth
Who knows if the Namco Portable will ever become a reality?
Dr. KillGood wrote:I have come to the conclusion that the Wii console is a myth, as I have yet to see more then 1.
I see a Wii every day. And last weeked I saw four Different Wii's over the span of 2 days(Not including mine). And played 3 of them, the one I did not play. It's controller was dead. So to me, The Wii is not a myth
Must... Resist... Gay... Joke...
Anyway, I don't think anything's really gonna change. Those stores are way too small anyway. Although one of them did have Viewtiful Joe for 5 bucks...
I don't want to make an "I'm leaving" thread, but I've sort of lost interest in this board. So if you notice that I'm gone, that's why.
I hate to say it, but I wish I'd never purchased my Wii. The new Zelda was fun, but I can't play any of the other games for more than a few minutes. The motion sensing aspect of Zelda was well implemented, but in other games it just gets old really quick. If it wasn't for the virtual console stuff, I'd have gotten rid of it already.
myersn024 wrote:I hate to say it, but I wish I'd never purchased my Wii. The new Zelda was fun, but I can't play any of the other games for more than a few minutes. The motion sensing aspect of Zelda was well implemented, but in other games it just gets old really quick. If it wasn't for the virtual console stuff, I'd have gotten rid of it already.
Go and rent/buy Mario Galaxy, most preferably buy it, it doesnt force uneccesary motion controls, and is as if not more fun than any Mario game.
and Metroid Prime 3.
I just have a feeling you have played all the wrong games. (besides Zelda)
Kyo wrote:well nightwheel was just asking for it, though. I don't know, but they aren't that rare in germany... I think
I was just saying in a fun, joking way. In that if the Wii is "myth" then how come do I own one. And I see other Wii's too sometimes.
But yea the Wii doesn't have many "Hard Hitting" games yet. Just give it a little more time. Some amazing game (other than Brawl) will come out of the woodwork and blow us all away. Leaving us asking for more. Just like Halo did on the XBOX.
Speaking of Gamestop though, The ones I went to last weekend had NO retro games other than a few GB and GBC games. I thought I heard some of you say guys you can get some retro games for Gamestop?
Who knows if the Namco Portable will ever become a reality?
nightwheel wrote:Speaking of Gamestop though, The ones I went to last weekend had NO retro games other than a few GB and GBC games. I thought I heard some of you say guys you can get some retro games for Gamestop?
All three near me have tons of GB and GBC games with the GBA games in the glass case at the counter.
One of the three carried and recently just phased out N64 and SNES games a while ago. It's up to the individual franchises to decide carry them or not, not a corporate decision I think.
Eh I hate how normal good games are now "hardcore" and stupid BS ones are "casual".
I think better terminology would be "real games" and "pieces of crap".
I am telling you all, this is a slippery slope. Look at Ford. Built everything around making SUV's. Market for that died, they're screwed. Once the casual gaming fad passes, everything built around it will fall.
But Gamestop and their chip smashers suck anyway, so who cares?
By the way, I found a 65nm Xbox, will be opening that baby up this weekend. It has a simple aluminum heatsink for the CPU, must be a major heat reduction from the new chip.
