From the humble beginnings, EB Games is now the computer games market leader. However, it is now facing new competition from giants like Harvey Norman.
According to figures by GfK that the game industry’s revenues grew by 44 percent to $1.3 billion – more than the revenues of DVD and the box office combined. But EB Games’ growth was below the rapid growth from last year, dispite opening 60 new stores, taking its total to 250.
It sales, ending on January 31 2006, it sales grew from $274 million to $309 million, according to statements filed with ASIC.
But now, it faces stiff competition with JB Hi-Fi also looking into trading in games and selling pre-owned games; even though it has been with EB since the beginning.
As well, Harvey Norman is set to take a chunk out of its market share and with both stores having large floor space, it can stock more games.
As well, discount stores like Kmart and Big W are cutting prices on games to sell more.
However, EB’s retail manager Shane Stockwell is confident that it will retain its no.1 tag and also welcomes the increased competiton.
“We do what we do, day in day out. It’s all we do. We don’t spend time looking at what our competitors may or may not do, or how many stores they may or may not open,” he told Australian IT.
“We can’t open 60 stores by appealing to gamers. Perhaps that’s more indicative of the growth and consumer we appeal to.”