Opinion: HMV couldn't outthink supermarkets or embrace digit

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The inevitability of HMV's demise makes it no less disastrous. One often marvels at the pace of change in the games industry, but not so when it comes to the sudden advances in the extinction of high street games retail.... read more

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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby cult » 15 Jan 2013, 13:58

Bambis Dad wrote:First they came for the Independents,
and I didn't speak out because I wasn't a Independent.

Then they came for the High Street Shops,
and I didn't speak out because I wasn't a High Street Shop.

Then they came for the trade Online Retailers,
and I didn't speak out because I wasn't a Online Retailer.

Then they came for me,
and it was okay as I'd been made redundant in the second stanza and could afford their prices for other goods and lived happily everafter on state benefits and doritoes and mountain dew..


Put that to music and you could be the fifth Rutle.
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Megatrons_Fury » 15 Jan 2013, 14:02

Games ever since the rise of consoles and the end of the tape/floppy disc have been 30-40 price bracket, master system games were 29.99 (19.99 for the 7 credit card shaped ones) nes games were 29.99-39.99 so where you get 20 quid for ps1 games from is bizarre unless you came to the party very late when all releases were the platinum price etc.

Anybody remember getting the ps1 day 1 to find out the memory card for it was 29.99.....My bum still feels that pain!!!

Snes games were sometimes even higher, not just import ones and ps1 games when first released were 34.99-39.99, gamecube prices were also the average.

Considering inflation rises over nearly 3 decades if games from the mid 80's era started out at 29.99 they should be over 60 quid already and not the 39.99 most shops sell them for. Look at the percentage rises of say a pack of cigs from that period to what they cost now.

Online sites have only ever competed due to lower overheads from not needing a national chain of stores, thousands of staff to man them and also the online sites for years have nicely abused a tax loophole or in the case of Amazon etc just simply dont pay tax.

Hmv's biggest mistakes were that they didnt invest in the right places over the years they held market dominance, they also didnt embrace digital expansion quickly enough, didnt cost cut when the credit crunch hit and everytime one of their competitors fell they didnt do enough to convince those customers to shop with them instead. Add to that the simple fact that gamers as a whole turned their back on established chains in order to save a fiver and get it a day early meant it was always going to be hard. Supermarkets absolutley harmed the high street retailers, my hatred of them selling anything they can get their hands on leading to less consumer choice down the road knows no bounds.

The worst thing is that ever since i've been on this site the underlying current has been one of people wanting shops to remain and in general hating digital distribution yet buying the majority of their games from places who are absolutely harming the long term health of traditional boxed retail. Classic pot and kettle situation.

Its absolutely a shame that this once great company has gone, so many job losses because of such bad management from people who for some insane reason will most probably walk back into another 50,000-75,000k job once they have finished. Corporate managers are like football managers....The same old ones just moving from place to place.

Good luck to any of the 4,000 staff who now have their futures in the hands of more strangers.

Surely with not one real high street competitor left GAME can't muck this up now right????
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby rhyfel » 15 Jan 2013, 14:08

before you know it we will be paying more for our online purchased games than what they where in retail form, because there wont be a high street left, iv got a feeling that online purchasing is going to bite us on the arse.
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Bambis Dad » 15 Jan 2013, 14:11

rhyfel wrote: iv got a feeling that online purchasing is going to bite us on the arse.

You'll have to send me a link, I have to do all the hard work myself.
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby KK-Headcharge78 » 15 Jan 2013, 14:15

Outsmart a supermarket?, thats crazy talk. HMV has just over 200 stores, Tesco alone has 3000- buying power? do the maths. The thing that has always struck me about HMV is they have been slow to react to the market, miles behind the digital music boom for a start. Bit of a jack of all trades master of none which is really sad for their staff.
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby beemoh » 15 Jan 2013, 14:15

beastie wrote:There will soon just be coffee shops, pound shops, little express supermarkets and banks left in the city centre.


And then they'll open smaller local distribution centres for their stock. Then, they'll offer collection, so you don't have to wait for the post. Then some bright spark will come up with the idea of letting people just saunter in and buy something rather than going through the process of ordering online. And so the cycle begins anew!

Assuming we're not downloading everything by then.
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Madjeski » 15 Jan 2013, 14:17

fonjackerjon wrote:Ok, Can you tell me how the hell HMV are supposed to embrace digital downloads? sell poxy itunes vouchers do not count!
HMV were warned on countless occasions regarding diversifying their business model to include digital distribution via there website along with optical media in store as the analysts they paid to research the industry came to the conclusion around 15 years ago (before iTunes) that a large portion or music would be purchased online. However the board of directors kept choosing to ignore their analysts and public trend and continued to have only a high street presence.
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby superfruit » 15 Jan 2013, 15:24

This has nothing to do with 'out-thinking' supermarkets. They command a vastly superior share of people's weekly spend and can use loss-leading tactics whenever it suits them.

David vs. Goliath and Goliath wins.

As for digital product, it's like 'the nothing' in Neverending Story. Everything will fall to it. Wait for Waterstones and WH Smith to go next.
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby funkyjack » 15 Jan 2013, 15:48

Sounds like Moore has a plan to adapt the business if it can get the support needed...

http://www.mcvuk.com//news/read/moore-w ... es/0109319
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Megatrons_Fury » 15 Jan 2013, 16:11

superfruit wrote:This has nothing to do with 'out-thinking' supermarkets. They command a vastly superior share of people's weekly spend and can use loss-leading tactics whenever it suits them.

David vs. Goliath and Goliath wins.

As for digital product, it's like 'the nothing' in Neverending Story. Everything will fall to it. Wait for Waterstones and WH Smith to go next.


Yeah Waterstones is definately going to go within the next few years as books are another thing you can get vastly cheaper online plus of course they are easily bought in digital form as well.

Wh Smiths if you ask me should be fine, as long as traditional post is needed they will always have a steady walk in trade from people using the post office services they built into their stores a couple of years back plus the high street will always need some form of newsagent even if its just for simple things like a choc bar, a newspaper, a magazine or to do the lottery, the bosses of Wh Smith who decided to partner with royal mail pulled off a master stroke of diversification there.

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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Chris_Shanahan87 » 15 Jan 2013, 16:55

I always buy from shops when I can to try to avoid things like this happening, but when your shop has ridiculously inflated prices it's hard to justify not buying online.

This was inevitable with the way in which they operated
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Farmboy74 » 15 Jan 2013, 17:47

If Game can't now turn things round with HMV going into administration they never will!!. Here's a thought if bricks and mortar retailers keep going to the wall like their doing at the moment, that leaves us with the Supermarkets and Online stores (with game prices going up) will this mean we all end downloading software from PSN/Xbox Live / Nintendo Network in the future for full retail releases?
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Megatrons_Fury » 15 Jan 2013, 18:49

Farmboy74 wrote:If Game can't now turn things round with HMV going into administration they never will!!. Here's a thought if bricks and mortar retailers keep going to the wall like their doing at the moment, that leaves us with the Supermarkets and Online stores (with game prices going up) will this mean we all end downloading software from PSN/Xbox Live / Nintendo Network in the future for full retail releases?


Yep your bang on right good sir, thats exactly what will happen, larger companies killed off the smaller ones then they got screwed by online sites and once they cant compete due to loopholes closing all thats left will be supermarkets, they will do what they always do which is to monopolise the market and then charge what they want meaning consumers as is always the case will mostly take the cheap option and download instead, the past 3 years or so has clearly shown people shop as a whole by price above all else and find absolutely any reason to justify it when the harmful effects of that mindset hit home.

I hate change, im old, and honestly even though I also hate kids i would at least like them to have the same experiences of boxed product from stores with damn manuals then on the way home get a magazine and read about other cool stuff on the horizon.

Grrrrrr modern times........ Grrrrrrr
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Mat Ombler » 15 Jan 2013, 19:01

illage2 wrote:I think it's simply due to online retailers like Amazon that have caused the retail outlets to decline. I feel sorry for all the staff, as they don't deserve to lose their jobs.

Next gen titles will retail for about £50 not £60.

PS1 - £20
PS2/Xbox/ Gamecube - £30
360, PS3, Wii - £40
WiiU - £50

I've noticed a £10 increase in games of the next gen.


Sorry, but where were you buying your games from? The Black Market? Do you not remember the price of N64 games?
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Re: Opinion: HMV couldn't outthink supermarkets or embrace d

Postby Mat Ombler » 15 Jan 2013, 19:06

Game will go next because of their greed. Any one who has worked there can tell you that. Trade-in incentives are terrible. Considering the second hand market is where they make most of their money, they need to rethink their strategy when they are still selling Nintendo Wii's for 60 quid.
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