Speaking out about the recent downfalls of major retailers in the UK, the outspoken videogames’ analyst Michael Pachter has called the UK games retail market “a joke.”
Speaking to Digital Spy [via GIBiz] he explained that the prices are pushed so low that it results in the market becoming unsustainable and forcing companies like HMV, Blockbuster and Game into administration.
Pachter says the pricing problem has been further exacerbated by a shortage of opportunities for customers to sell on second hand games, which in turns limits their funds to spend on new games.
“Retail needs to make money to exist, and games retail in the UK doesn’t make money,” claimed Pachter.
“The UK games retail market is a joke, with retailers pricing below cost to drive traffic.
“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.”