Michael Pachter has placed the UK games retail sector as ‘a joke’, in relation to companies pricing games lower than the competition in bid to claim the high street.
Speaking with Digital Spy, the Wedbush Morgan analyst said, “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.”
Pachter’s comments come in the wake of HMV’s full list of UK stores facing the chop, which will put almost 1,000 employees out of work in coming months.
What do you think of Pachter’s comments? Has the war for lower pricing resulted in a savage marketplace where only the fittest survive? Let us know below.