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.

 
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Mattsworknamefor gamers to hold the media sites they had issues with accountable? If we look at those questions, I think we find the answer to the first one07/28/2015 - 8:20pm
MattsworknameEZK: I can't answer that, Im split on it cause I feel both are wrong ,but at the same time, I don't know if theres other ways to go about those seperate con.cerns. Was there a better way for feminists to make there point about GTA? was there a better way07/28/2015 - 8:20pm
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MechaTama31On a slightly different topic, in about a month my fiance will be a Mrs., but I'll still be a Mr., as I've always been. Hardly seems fair. I want a nifty new title!07/28/2015 - 8:13pm
E. Zachary KnightMatt, So, what is it? Is petitioning Intel to pull ads from Gamasutra "bullying and threatening" or is it justified? You can't have it both ways, especially if petition Target is "bullying and threatening".07/28/2015 - 8:10pm
Andrew EisenWhat this comes across as is "we need to find a way to silence anyone who says something we don't like."07/28/2015 - 8:08pm
Andrew EisenAnd how was Gamasutra not accountable for the opinion piece it published and refused to pull or edit even after advertising had been pulled?07/28/2015 - 8:08pm
Andrew EisenThere are tons of options when it comes to an opinion piece you don't agree with. Stating otherwise is dishonest or shows an extraordinary lack of imagination.07/28/2015 - 8:07pm
Mattsworknamethem acounatble. We just didn't have many opttions at the time07/28/2015 - 8:05pm
MattsworknameEZK:I never said it was justified, I just said that some people felt they didn't have any other means to hold them accountable. Weather it's justifited or not is somethign to debate, but I was never a big fan of it cause I wanted some other way to hold07/28/2015 - 8:04pm
Mattsworknameprice07/28/2015 - 8:03pm
MattsworknameAndrew: Your not wrong andrew, but gamasutra , and others like it , were called to task by the audiance that felt they had turned there backs on them. True or not, in media, you have to know how to reach an audiance, and chosing not to, well, you pay a07/28/2015 - 8:03pm
Andrew EisenAt the end of the day, even when Intel pulled its advertising (albeit, temporarily), Gamasutra showed its journalistic integrity by not removing or editing the opinion piece.07/28/2015 - 8:00pm
Andrew EisenNot liking Gamasutra is fine. The audience is primarily industry folk and it's not a game-focused site so it's probably not targeting you anyway.07/28/2015 - 7:57pm
E. Zachary KnightMAtt, So, an online petition asking Target to stop selling GTAV is "bullying and threatening" but a petition and boycott of Intel to force them to stop advertising on Gamasutra is justified?07/28/2015 - 7:56pm
Andrew EisenTrue or not, what it came across as a bunch of people lashing out at a publication over an opinion piece.07/28/2015 - 7:56pm
MattsworknameTo be honest, I've never liked them, but mostly cause rather then being a game focused site, they felt to political for my taste07/28/2015 - 7:56pm
Andrew EisenAnd in the case of Gamasutra?07/28/2015 - 7:54pm
Mattsworknameour concerns about them were well founded.07/28/2015 - 7:50pm
MattsworknameDepends on who you ask, accountable fto it's audiance, accountablie for lies and half truths, accountible for disengenous statements, everyone had there own reasons for going after them. Although in the case of gawker, recent events seem to indicate that07/28/2015 - 7:50pm
 

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