The Video Game industry, once the bane and
envy of the toy industry, continues a free-fall that is looking less cyclical
and more like a permanent downturn (- 20% in August). How does a video game retailer make up those lost dollars; it turns to toys?
That at least according to a very interesting
article by Toy News entitled, “Video Game Indies Turn to Toys.” It appears that, in the UK from which Toy
News originates, independent video game retailers have turned to traditional
toys as a means of supplementing revenue and profits.
Here is how author Dominic Sacco puts it, “In
the search for higher margins, several respected names in the worlds of both
High Street and online games retail have begun stocking toys and gadgets over
the past 12 months.” (By the way, High
Street is the UK’s name for America’s Main Street).
I respect Toy Book for looking into this
phenomenon but was not able to find corroboration that this is happening in the
US. If you sell to or knowledgeable
about the video game retail industry, please let us know your thoughts.