TIGA Comments on Decline in Retail Sales of Video Games

By August 6, 2012 Press Releases

TIGA,the trade association representing the UK games industry, says the low retail
sales of games is an indication of the falling desirability of box copies of
games and the shift away from publishers.

TIGA commented that more needs to be done to educate consumers about the large
number of games currently being sold direct to gamers by developers.

Games retailers in the UK generated £8.4m from software sales last week which, according
to trade publication MCV, was the lowest since records began. The magazine said
this was due to economic woes, the end of the console cycle and the rise of
digital and downloadable content although it also said major events such as the
Olympics could also be blamed.

TIGA believes that digital sales are having a major impact on physical sales
and that developers can benefit hugely from the direct route to market. But it
warns that a report in July by the NPD Group showed rising digital revenue was
not growing fast enough to make up for the steep declines in sales of packaged
media.

TIGA has a Self-Publishing Group chaired by Patrick O'Luanaigh, CEO of nDreams.
It is working to enable developers to become self-publishers and shares best
practice information and advice. TIGA has also published a Guide to
Self-Publishing which has been made available to all members for free, offering
guidance on self-publishing issues.

In recent years, there has been a massive explosion in the number of
self-publishing developers  with smartphone and social media gaming
proving especially popular. Apple's App Store surpassed the 25 billion download
mark and games regularly take up 70 per cent of the top 10.   The three major consoles – the PlayStation 3, Xbox 360 and Nintendo Wii – also
have digital distribution platforms and, when PC and Mac gaming are included,
it is clear there is a great opportunity for developers to be creative and
maximise their revenue.

Dr Richard Wilson, TIGA CEO, said:  

“Consumers
are familiar with downloading games. particularly on tablets and mobile phones,
and we have seen real growth in this direction. With more developers deciding
to sell their games direct through digital distribution channels, there is a
real opportunity for both creativity and revenue. The figures show a real need
by developers to understand the importance of distribution, marketing and
publicity to ensure they maximise their sales.” 

Patrick
O'Luanaigh, TIGA BOARD member and CEO of nDreams, said:  

“Surely
it is now time for retail publishers with their huge marketing experience to
find a new way of working with independent studios with
strong digital talent. The old model where publishers owned all the IP and
offered ‘net of everything’ royalties can’t work anymore. Lots of UK studios
are now self-publishing, but many talented teams still need either financial
assistance or marketing expertise to bring a successful game to market. I
applaud initiatives like the new Activision Mobile publishing label and hope
that more publishers go down this kind of route.”    

Notes to editors:About TIGA: 

TIGA is the trade association representing the UK’s
games industry. The majority of our members are either independent games
developers or in-house publisher owned developers. We also have games
publishers, outsourcing companies, technology businesses and universities
amongst our membership. Since 2010, TIGA
has won 12 business awards and has been nominated a finalist for 9 other
awards.  In 2010 TIGA won two business awards including
‘Trade Association of the Year’ from the Trade Association Forum. 

In 2011, TIGA
won eight business awards including ‘Trade Association of the Year’ from the
Trade Association Forum, ‘Outstanding Organisation’ from the Chartered
Management Institute and two Global Business Excellence Awards, including
‘Outstanding Marketing Campaign’. 
Richard Wilson won the ‘Leadership Award’ from the Trade Association
Forum and the ‘Outstanding Leader’ award from the Chartered Management
Institute. In 2012, Richard Wilson won
the IoD’s East of England Director of the Year Award. TIGA is an Investors in People organisation. Also in 2012,
TIGA won a Global Business Excellence Award for its ‘Outstanding Public
Relations Campaign’ for Games Tax Relief.  

TIGA's
vision is to make the UK the best place in the world to do games
business.  We focus on three sets of activities: political representation,
generating media coverage and developing services that enhance the
competitiveness of our members.  This means that TIGA members are
effectively represented in the corridors of power, their voice is heard in the
media and they receive benefits that make a material difference to their
businesses, including a reduction in costs and improved commercial
opportunities.

For
further information, please contact Dr Richard Wilson, TIGA CEO on: 07875 939
643, or email: richard.wilson@tiga.org

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