Delivery

All competitors distribute through the same distributors.  None have flagship stores, nor do they supply directly on the internet for fear of generating a backlash from their existing distributors.  However, some sales on the internet do exist through third party distributors some of whom who may well have a shopping mall or high street presence as well.

Manufacturers play an active role in developing the training material for distributors so that those distributors can train their people to correctly represent the features of the manufacturers’ products.  The quality of training material can vary from manufacturer to manufacturer and from year to year.  Not every distributor does a good job of educating salespeople:  industry margins are slim, staff turnover is high and thus there is often little time and focus on training the salespersons other than in basic customer courtesy, shelf stacking and how to use the till.

The main approach to move product are special deals and promotions – effectively price discounting.  In most cases the distributors get agreement from the manufacturers to contribute to the advertising which accompanies a special deal.  In addition to these price discounting deals and promotions, manufacturers provide ‘bundles’ – a combination of game console, controllers, one or two games and perhaps an accessory or two.  Manufacturers produce many different bundle configurations with small price differences between them.  This is intended to create as much choice as possible and to serve the exact needs of the many different sub-segments manufacturers perceive within the video game playing market.

Most large stores have demonstration consoles from some manufacturers which customers and potential customers can use.  However, they are so seldom used and so poorly maintained (cleaned and repaired), that manufacturers are becoming reluctant to provide demonstration models of their latest consoles.