Konami to UK Retailers: Stop the Price War

September 1, 2011 -

Konami Europe's top executive says that publishers are taking a shellacking from retailers in the United Kingdom because of their competitive pricing and constant sales battles and he's had enough. Speaking to MCV, the publisher’s European chief Kunio Neo said that the UK market is suffering, while other territories such as Germany are thriving. He blames the constant sales battles among retailers in the UK and he has a message for them: Stop the price wars.

“UK games pricing is very poor,” said Neo. “Retailers are always reducing prices and the profits for publishers are getting smaller. The UK is really suffering. And he said that Konami is far from the worst-off publisher in this situation.

“We’re based in Germany and despite the economic conditions in many other countries, Germany is doing alright. So we’re not as affected as a US publisher that has a UK office. They’re suffering because they focus their sales on the UK.”

Konami’s European GM of sales, marketing and products, Martin Schneider offered a more succinct message:

"Tell the UK shops to stop the price war."

We wonder if they are actually listening, and we have a pretty good idea of what consumers in the UK think about all the sales..

Source: Konami


Comments

Re: Konami to UK Retailers: Stop the Price War

Hmm, lets investigate a few games that pop up on web pages of the console section of the leading UK high street games retailer... in fact, the ONLY major high street retailer specialising in video games as far as I'm aware.

 

GAME - FIFA12 or MW3, £45.  Dead Island or BF3, £40.

RRP - FIFA12 or MW3, £55.  Dead Island or BF3, £50.

US prices - $59.99, equivalent to £36.99 at current exchange rates.

Maybe the UK retailers are undercutting recommended retail prices, but we're still getting gouged in comparison, so what I'm thinking is, "you dont know what the hell you're drooling about, Konami, you insane morons."

Re: Konami to UK Retailers: Stop the Price War

So he wants to UK to stop selling games at cheaper prices. I take it that he believes that £55 for COD is acceptable then?

Games at £30 are still too expensive, and considering that the UK has to pay more for hardware and software, well he just needs to take a long hard look at those comments.

Re: Konami to UK Retailers: Stop the Price War

£30 can be a substantial amount of money compared to ones budget but £30 for a product that, in some cases, gives you hundreds of hours of entertainment is practically a steal.

Re: Konami to UK Retailers: Stop the Price War

Lol. You know you are full of yourself when you make this statement publicly.

On the other hand, UK, could you teach other countries how to be more competitive?

Re: Konami to UK Retailers: Stop the Price War

Would Mr. Neo prefer price fixing, instead?

Re: Konami to UK Retailers: Stop the Price War

wait a second...wouldn't retail sales come out of the store's cut of the sale? unless Konami's lowering what they sell it to the stores for, how could that have an effect on them?

Re: Konami to UK Retailers: Stop the Price War

So Konami is basically saying "Screw the free market! Sell stuff at the price we want them sold for, not what their market says they should be sold for."

Re: Konami to UK Retailers: Stop the Price War

I wouldn't go that far, but if something doesn't happen soon, there won't be much of a market left.  If something's not profitable, there's no investment. What most people fail to realize is that games are not a labor of love. It's a business. If there's no money to be made, investors take their money elsewhere. If there's no investment, there's no product.

It's the same thing with reserving games at Gamestop or Target. If there's no pre-orders, that tells the publishers there's no interest, so they cut their losses and move on to the next project. One of the big reasons that games are canceled is lack of consumer interest.

Re: Konami to UK Retailers: Stop the Price War

The question is what exactly is supposed to "happen soon"?

Now we don't know what kind of supplier contracts are in place here, but Konami should theoretically be able to refuse to sell their product to retailers below a certain point, setting a price floor for any retailers that want to carry the merchandise and be able to sell it at a profit. However, the effectiveness of that depends on how much the retailers value Konami products versus how much they value the increased business from all of their sales. If the Konami products aren't "must have" big sellers, then they may have their answer why they're having a hard time holding a higher price point.

My question is, where is the problem here that is inhibiting normal correction if prices are truly too low from a market standpoint, rather than just "too low" from what the publishers would like? If the UK market really is doing so bad, the retailers ultimately are going to hit the bottom on slashing prices and still being able to sustain themselves, and the weaker competitors are going to start dropping. One would assume the reduced competition at that point would see prices start to rise again.

It is entirely possible I'm missing something, but I'm not sure where any of this is deviating from normal market dynamics to the point that the whole UK games market could implode.

 
Forgot your password?
Username :
Password :

Poll

Which video game platform are you most thankful for?:

Shout box

You're not permitted to post shouts.
MaskedPixelantehttps://hmv.ca/en/Search/Details?sku=763440 Real life Metroidvania.11/28/2014 - 8:33pm
Matthew Wilsonhttp://www.theguardian.com/uk-news/2014/nov/25/lee-rigby-report-internet-firms-safe-haven-terrorists-pm wow... come on uk really?11/28/2014 - 2:39pm
MaskedPixelantehttp://www.nintendolife.com/news/2014/11/two_tetris_downloads_to_be_removed_from_the_3ds_eshop_in_europe Tetris to be removed from the 3DS VC at the end of the year in Europe. Other regions unknown, but will probably all happen too.11/28/2014 - 9:16am
Andrew EisenThe story you just linked to? The story you asked if anyone had seen? Yes, THAT obnoxiousness. I've heard it parroted for nearly two years now.11/27/2014 - 7:57pm
ZippyDSMleeAndrew Eisen: That shes an ex con man?11/27/2014 - 7:54pm
Andrew EisenI've heard the same obnoxious horse poo for years. It's nothing new.11/27/2014 - 7:45pm
ZippyDSMleeAlso anyone see this? http://guardianlv.com/2014/11/anita-sarkeesian-unmasked-feminist-icon-or-con-artist/11/27/2014 - 7:28pm
ZippyDSMleeEvil within is a badly designed game.11/27/2014 - 7:28pm
Andrew EisenSure but you said "widens," hence my confusion. Looking into it, yep, there's a tweak to completely re-frame the image, adding more info at the top and bottom. You apparently need a fairly beefy rig to keep it running smooth when you do that though.11/27/2014 - 6:48pm
Matthew Wilsonthere is vertical fov, not just horizontal fov11/27/2014 - 6:38pm
Andrew EisenWell, you can widen it to 3:1 or even 10:1 but I don't know why you'd want to. From what I understand it's the missing visual info at the top and bottom that some object to, not that there isn't enough on either side.11/27/2014 - 6:36pm
Matthew WilsonI think it widenss the fov, so you get to see more.11/27/2014 - 6:31pm
Andrew EisenI don't see how as doing so would not add any visual information to the top or bottom of the screen.11/27/2014 - 6:04pm
Matthew Wilsonfrom what I read, getting rid of the black bars and stretching it out made for a better play experience.11/27/2014 - 5:59pm
Andrew EisenFrom what I hear, there's a ton of "look up and shoot at the guys above you" stuff in the game that the wider frame doesn't accommodate such actions well.11/27/2014 - 5:55pm
Andrew EisenHaving a game run in scope is not necessarily a bad thing but like any aspect ratio, you have to compose your shots correctly.11/27/2014 - 5:55pm
Neo_DrKefkaThe Evil Within was pretty bad and to make it worse the way the screen size made it hard for you to see even on a big screen it really hurt the game. Being Artistic is great but when you focus on art rather than what sells you run the risk of that happen11/27/2014 - 5:33pm
Matthew WilsonI kinda hope this is not true. http://www.nintendolife.com/news/2014/11/nintendo_might_not_be_making_more_gamecube_controller_adapters_at_the_moment11/27/2014 - 1:34pm
Matthew WilsonI saw that. I wish people would stop preording, but sadly that will never happen.11/27/2014 - 1:26pm
Papa MidnightUbisoft has cancelled the Season Pass for Assassin's Creed: Unity (http://www.reddit.com/r/pcmasterrace/comments/2ni2ac/ubisoft_cancel_season_pass_for_ac_unity/)11/27/2014 - 1:08pm
 

Be Heard - Contact Your Politician