Video Game Retail Hit Hard in 2012 - Digital Up, Up, Up Though
Digital sales top £1 Billion for the first time
The Entertainment Retailers Association (ERA) has produced a report relating to what, from any perspective, was a rough year if you're trying to sell CDs, DVDs, Blu-rays or video games to the public on the High Street. It's a bad report if you don't have a good online strategy.
The ERA report will come as little surprise to companies such as the GAME Group having to reinvent itself via the death of GameStation, and HMV 'facing material uncertainties' in 2012.
In terms of the figures well, the BBC states that, "Sales of CDs, DVDs, Blu-ray and video games fell by 17.6% in 2011 although they still make up most of the market." Ouch.
However, the less painful side, however is that, "More than £1bn was spent on downloaded films, music and games in 2012, the highest annual total."
The digital figures break down as follows according to the ERA:
Music £383m (up 15.1% on 2011)
Films/video £98m (20.3%)
Video games £552m (7.7%)
Total: £1,033m (11.4%)
And yes, that means that more than half of the digital sales went on video games, which grew 8% to £552m. Kim Bayley director general of ERA sums this up, stating that, "Downloads offer convenience and portability, but people still seem to value the quality and tangibility of a physical product.
"And while consumers are now paying for downloads, that's not making up for the rapid fall in high street sales."
He also mentioned that, "Sales of video games in shops were particularly badly hit, with retailers blaming a lack of compelling new titles..." ORLY?
The ERA report will come as little surprise to companies such as the GAME Group having to reinvent itself via the death of GameStation, and HMV 'facing material uncertainties' in 2012.
In terms of the figures well, the BBC states that, "Sales of CDs, DVDs, Blu-ray and video games fell by 17.6% in 2011 although they still make up most of the market." Ouch.
However, the less painful side, however is that, "More than £1bn was spent on downloaded films, music and games in 2012, the highest annual total."
The digital figures break down as follows according to the ERA:
Music £383m (up 15.1% on 2011)
Films/video £98m (20.3%)
Video games £552m (7.7%)
Total: £1,033m (11.4%)
And yes, that means that more than half of the digital sales went on video games, which grew 8% to £552m. Kim Bayley director general of ERA sums this up, stating that, "Downloads offer convenience and portability, but people still seem to value the quality and tangibility of a physical product.
"And while consumers are now paying for downloads, that's not making up for the rapid fall in high street sales."
He also mentioned that, "Sales of video games in shops were particularly badly hit, with retailers blaming a lack of compelling new titles..." ORLY?