NEWS - Monday, May 13, 2002


Blockbuster Widens Video Game Array

Blockbuster, the No. 1 video rental chain, will revamp more than 4,300 of its outlets in the next month to include an area dedicated to sales of video games and game equipment, the company said Monday. The move comes at a time when the retail chains that specialize in video game hardware and software have posted record revenue and impressive growth rates, building on the game industry’s sales of more than $9 billion last year. Dallas-based Blockbuster, which is controlled by media giant Viacom, is betting that it can take a bigger share of that booming market by allowing consumers a chance to buy game consoles and rent or buy the games they play, all in a single location. "We have excellent market share in games rental, (and) it becomes fairly apparent that this is a big growth opportunity for Blockbuster," said Nick Shepherd, Blockbuster’s executive vice president for merchandising. Shepherd said the new video game ministores will be in 90 percent of the more than 4,300 stores by Memorial Day, with the rest in place by mid-June. Each of the four major game platforms--Microsoft’s Xbox, Sony’s PlayStation 2, and Nintendo’s GameCube and Game Boy Advance--will get its own dedicated section of shelving. Each of those sections, in turn, will offer games for rent, new and used games for sale, accessories, publications, and a few units of the consoles themselves. Blockbuster expects to offer, at an average store, 400 to 600 total rental titles and 150 to 200 retail titles, both new and used. To support the initiative, Blockbuster will launch a program called "Rent It! Like It! Buy It!"--giving gamers a $5 discount on a game if they first rent it at the regular price. The chain will also start a "Games Freedom Pass," allowing customers to rent an unlimited number of games for 30 days for $19.95, though they can have only two games out at one time. A one-month pass will also be given out for free to people who buy a console from the store. "Really, it’s a ’try before you buy’ mentality," Shepherd said. The video game industry is in the first full year of what analysts have said will be a multiyear cycle of unprecedented growth, driven by sales of the new consoles and next-generation software. In the most-recently completed quarter, the top three publicly traded video game publishers reported sales of $714.3 million, up 45 percent from a year earlier. The video game industry is also increasingly being recognized as an island of double-digit growth and strong investment opportunity at a time when technology and media stocks are largely being battered by weak ad sales and a tough economy. Observers have also remarked that as the industry matures it is coming to look more like Hollywood, with new game production financing models that look much like independent studio deals. Shepherd said the reason Blockbuster is willing to go head-to-head with established competition in the games retail business is that it can offer rentals. Some 70 percent of renters due so as a prelude to buying, he said. The top two specialized retail game outlets--GameStop and Electronics Boutique--have seen strong sales numbers since late last year, when the Xbox and GameCube were launched. GameStop reported a 35 percent increase in comparable-store sales for 2001, while Electronics Boutique reported a 47 percent jump in revenue for its last fiscal year ended in February.
Source: http://www.xboxaddict.com/

Site Statistics

Registered Members: 52,369
Forum Posts: 725,928
Xbox One Titles: 3,637
Xbox 360 Titles: 1,086
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 586
Original Xbox Titles: 987
Staff Reviews: 2,174
Member Reviews: 10,339
News Articles: 16,080
Screenshots: 35,297
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

2021: XBA is still here
Post by shrew king
2 Replies, 14396 Views

Watch Dogs: Legion
Post by Nato King
0 Replies, 31747 Views

Xbox Series X or S
Post by Nato King
5 Replies, 42308 Views

Spellbreak Grand Magus Pack (3) and Starter Pack (7) Giveaway!
Post by Variation-XBA
0 Replies, 34708 Views

I pay $ 1000! I search the Element 54 Canadian launch Team signaturen Faceplate
Post by Smill
0 Replies, 34965 Views

Xbox one no signal
Post by debrartin
0 Replies, 54651 Views

do you remember?
Post by SnoochyBoochy
3 Replies, 57052 Views

i haz xbox
Post by SnoochyBoochy
0 Replies, 49654 Views

Claiming the first thread of 2020
Post by Kraft
7 Replies, 80605 Views

Important! I pay $ 1000! I search the Sweden launch and the Element 54 Faceplate
Post by Smill
3 Replies, 39698 Views

Squad Up
Post by samslophead
0 Replies, 87554 Views

TERA Skinned Xbox One X Giveaway!
Post by Variation-XBA
0 Replies, 65413 Views

Starfield Release expectations?
Post by DJ tx
4 Replies, 124517 Views

Issue with Xbox live on Xbox home
Post by rcmpayne
0 Replies, 86069 Views

Happy Birthday, Me.
Post by SnoochyBoochy
4 Replies, 106225 Views

© 2000-2021 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics