They want publishers to lower trade prices though to help out, saying it’s ”pointless” to stock new games otherwise. One publisher feels it’s just deserts.
”I am concerned about the effect it will have in the short term,” said Barkman Computers’ Nick Elliot. ”There have been some Christmas titles that we are being extra careful on our stocking. The margins we operate on are minuscule.”
Retailers want help from suppliers to keep the average game price below the £40 barrier. ”The issue is with new games – if publishers don’t adjust cost prices it’s pointless to stock them,” added Game On managing director Matthew Brady.
”Customers already think that the RRP is £39.99 and some are calling for it to be dropped further. We would be looking for some form of price movement from publishers.”
One publisher is unimpressed by this retailer hypocrisy. ”Stores were more than happy to not change prices when VAT was cut – they surely understand this situation works both ways?” they said. Independent retailers will feel the biggest pinch.
The rise in VAT will reduce competition in the videogames retail sector if a lot of small time shops are forced to abandon them, leaving only specialist outlets.
