By Duran Rivera |
Best Buy is on the precipice of throwing a new
video game magazine into the ring of an already cluttered industry. The name
“@Gamer” was announced several weeks ago and will be an ambitious venture to
snatch up some of the crumbs from other retailers like GameStop. Best Buy is
launching the new magazine with the goal of building a new culture and
reputation around the brand, by reaching out to the market that they see as
their most profitable age bracket – 20-38-year-old males.
The magazine will be published by Future Plus
Group and is expected to release at the end of June. This is Best Buy’s second attempt to jump into the Game Magazine
Market. The first time was a magazine called Gamestar (the title alone must have killed it) and was
published by IDG, the same folks who also published Gamepro (sense a pattern?).
Ex-IGN Editor in Chief Andy Eddy will be heading up this publication.
This news reminds of an article I read a while
ago about companies expanding into new markets. It was more of a “how to” regarding what works and what a prospective
company should have before they venture into new waters.
Now let us see if these points refer to Best
Buy’s new venture:
- Measure the strength of your existing shop.
- Determine if your business can be replicated.
- Be crystal clear on what your objective is for
expanding into a new market.
- Perform market research on any proposed new location or
medium.
- Be certain you have enough funding.
- Consider all alternative growth alternatives before deciding to expand into a new
market.
- Be prepared and understand that your resources will be pulled from your existing efforts and
how this will affect your current business.
- Establish a timeline
to achieve an acceptable level of revenue in the new market.
- Have a game plan ready if your expansion costs more and
takes longer.
- Understand how your expansion will impact your existing
clients.
The only thing I could see Best Buy having in
the bag is number 5; They have the financial
muscle and name recognition. The long-term
strength of Best Buy regarding their video game publication business is not convincing. They are
replicating something that’s been done over
and over again. In the madness of such a competitive industry, this magazine
could easily flop.
They’re trying to grab whatever they can from
other retailers regarding market share
but will this magazine, and the entrance
into a dying market accomplish that? I’m not confident it will.
We still don’t have details on pricing or what
exactly the magazine will offer, other than it being the official Best Buy
gaming magazine so we’ll keep an eye out and let you know when we do.
What do you guys think? Do you think Best Buy
is making a good move in throwing their hat in the Game Publications Industry? Do they see the big picture, or are they just
getting swept up in the quick profit fix?
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