Dixons plans attack on computer game market
Monday 18 May 1998
Dixons proposes to more than double the space allocated to computer games in each of its 340 outlets. The number of Sony Playstation games will be increased from 60-160 in all its stores over the the summer.
The aggressive move by Britain's largest electrical retailer will be a blow to the specialist games groups like Electronics Boutiques and Game, which have been growing quickly on the back of a booming market and the success of games like Tomb Raider.
The timing of Dixons' attack could affect the placing of Game's pounds 140m flotation, which is due to be announced in two weeks time. Game had hoped to float at a significant premium to the market helped by the surging share price of Electronics Boutique, whose shares have trebled since last summer.
Dixons has sold pounds 100m of computer game hardware and software this year and claims to have a growing share of the UK entertainment market. It has been pleased with the performance of its new "mega" store format at Cribbs Causeway in Bristol, which opened two months ago and devotes substantial space to computer and video games. The store also has other features such as a photo-processing centre, which may be added to more stores.
Jonathan Hart, Dixons' managing director said: "We see games as a large and growing market. That's why we're responding to our customers' demands for the best range and choice Dixons can offer."
The company will create the space for more games in its branches by mounting televisions on walls. It reckons wall-mounted TV displays will help demonstrate the qualities of digital TV sets as they come on stream later this year.
The UK entertainment software market was worth pounds 624m last year and is growing fast. Dixons says 19 per cent of UK households own a PC and that consumers buy six to eight games a year on average.
The market is at present dominated by specialists like Game and Electronic Boutiques. Other strong players in the market include music megastores like Virgin and HMV.
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
- 3 Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
- 4 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
- 5 Google search history can now be downloaded in its entirety, mass embarrassment expected
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£12000 - £15000 per annum: Recruitment Genius: An expanding Insurance Brokerag...
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...