Discounting hits Aussie retailers

It is regarded by many as a phenomenon unique to the UK video games market, but savage price wars are now spreading further afield.

The majority of video games sales in both Australia and New Zealand are through specialist retailers, including EB Games, and JB HiFi, but a price war has sparked competition.

The recent downturn has led to extreme discounting by these major players, which further weakens the second tier clients,” says distributor All Interactive’s Robert Kingston.

Sony’s Michael Ephraim believe he has the answer: Some retailers do well when we work together to build consumer value with special bundled offers or unique limited editions, which show that consumers want more than just a sharp price.”

The leading retailers have also started to expand their online offerings, with EB Games, JB HiFi and GAME all putting more energy into their websites.

Another growth area in retail is game-related cards, such as the Microsoft Points or PSN top-up cards.

App developer Halfbrick’s Duncan Curtis adds: A push towards iOS games means many retailers are now selling iTunes credit.”

To read MCV’s full Australia and New Zealand territory report, click here.