This week has seen the news that sales of games have overtaken those of films- which themselves have overtaken those of music in the UK- yet the largest games retailer Games Group has gone into administration.
According to the The Entertainment Retailers Association (ERA) UK sales of games in 2011 were £1.93 billion- which made the gaming industry the country’s biggest entertainment sector.
By contrast, sales of DVDs and other video formats totalled £1.80 billion, while music sales came only third with only £1.07 billion in UK sales.
In total sales in 2011 for games, video and music fell year-on-year by 3.3% to £4.80 billion.
“This is a dramatic time for the entertainment market,” said Kim Bayley, director general of the ERA.
“The UK is the most competitive retail games market in Europe – as such I don’t believe gaps in the market will be left unplugged for any length of time.”
However it not all profits for gaming companies. The Game Group has today gone into administration.
The business has been hit by competition from online only retailers.
Game Group employed 385 staff at its headquarters in Basingstoke in Hampshire, and about 5,100 in its stores in the UK and Ireland.
There are two morals to these stories- if you are not yet trying to sell your products or services online- your competitors certainly are, and the old certainties of life are changing.
The question for you is- are you up to date with all of the changes in the world? If not please click here for some free help.