Analyst Michael Pachter says that the United Kingdom retail games market is a joke because companies are more interested in getting traffic than in making a clear profit from their sales.
The Wedsbush Morgan employee states, “retailers can’t make any money on games, hence the bankruptcies of GAME, HMV and Blockbuster, and the refusal of GameStop to expand into the market. If all retailers go broke, or if games are dominated by mass merchants like Dixons, gamers are ultimately going to get fewer selections.”
The fact that GameStop does not operate in the United Kingdom also means that there are limited opportunities to create a standard used-game market, which is essential in order to give players more money via trades to fund future purchases.
HMV has recently declared bankruptcy and other stores are also reporting financial difficulties.