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Old February 2nd, 2007, 08:51 AM
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Default Re: DVD Empire Getting Out Of The Game Selling Busines

What this says is true, to a point. The Walmarts and chain resellers control the market. He is blaming the manufacturers, but unfortunately it is the chains that control the price point. If you are a manufacturer and ship 5,000 units to EB and they don't fly off the shelf (two weeks is all they get to prove themselves), then EB says "take them back or reduce the price so we can move them." The manufacturers can't afford to pay to have them shipped back, inventoried, repackage and reship and make money. So the price is dropped to the big guys. Now the small shops are left holding product they paid for at full price and now have to sell at half that.

It is why we as a niche publisher don't do traditional retail. Niche games will never prove themselves in two weeks at retail. And we have proven that products have long shelf lifes if they are marketed and given the chance.
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