The Video Game industry, once the bane and
envy of the toy industry, continues a free-fall that is looking less cyclical
and more like a permanent downturn (- 20% in August). How does a video game retailer make up those lost dollars; it turns to toys?
That at least according to a very interesting article by Toy News entitled, “Video Game Indies Turn to Toys.” It appears that, in the UK from which Toy News originates, independent video game retailers have turned to traditional toys as a means of supplementing revenue and profits.
Here is how author Dominic Sacco puts it, “In the search for higher margins, several respected names in the worlds of both High Street and online games retail have begun stocking toys and gadgets over the past 12 months.” (By the way, High Street is the UK’s name for America’s Main Street).
I respect Toy Book for looking into this phenomenon but was not able to find corroboration that this is happening in the US. If you sell to or knowledgeable about the video game retail industry, please let us know your thoughts.