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Best Buy CEO: 'Consumers Are Out Spending Again'
by Leigh Alexander [PC, Console/PC]
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October 1, 2009
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After long summer months of NPD declines, the video game industry is looking to the holiday season for a return to growth, and a shot at coming out ahead for 2009. Hardware price cuts are in place and most publishers have saved their highest-profile titles for the period -- but will the consumers come?
CEO Brian Dunn of retailer Best Buy believes so. "Consumers are back out spending again," he told outlets like MarketWatch at a media conference in New York.
Last season, and throughout the challenging economic period, cautious retailers placed lower-than-usual orders for initial inventory of many titles, preferring to monitor consumer behavior around individual games before placing reorders. Many publishers, like Electronic Arts and Take-Two, cited this pattern of enhanced retail risk-aversion as a drag on their year-end sales results.
Dunn says that Best Buy, at least, is set to loosen its belt a bit this season, however. "We are hiring more people for seasonal business," he said. "You are going to see us go deeper on inventory bets. I'm more optimistic today than I was in June."
Analysts agree that most retailers who sell game software will have to implement aggressive price promotions to help drive foot traffic, creating a careful balancing act between stores and software publishers on building revenue while drawing shoppers in.
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