HMV Target Gamers
HMV have responded to predictions that the CD market set to decline by 10% per annum by embracing the gaming market. With consumers increasingly downloading films and music CDs and DVDs have experienced a price deflation. HMV had made strides to improve the sales of DVD box-sets as these were perceived by the consumer to have a greater added value. However sales of these have slumped and prices have been slashed accordingly. A DVD box-set of the complete works of Hitchcock cost £90 last year but is now leaving the shelves for £25. The chief executive of HMV Simon Fox stated, "People are getting more for less".

As a traditional retailer of tangible items HMV has also been under pressure from supermarkets and internet retailers who have been slicing into the HMV customer base. Interim financial reports for the six months before October reveal a pre-tax loss of £29m for the company. This is not particularly surprising as the company makes the majority of its money over the Christmas season. Nevertheless they plan to increase their profitability all year round with the introduction of Gamerbase which will be a 21st century social club that will enable gamers to sample games before they buy.

Deep in the bowels of the London, Trocadero centre, Picadilly HMV have developed a paradise for computer game enthusiasts. Gamerbase, with over 70 computers with plasma screens, has been opened as a new marketing technique designed to encourage gamers to purchase games from HMV. The new entertainment venue for gamers costs £3-£4 per hour but HMV bosses hope that it will lead to sales of games in the adjoining store. HMV hope gamers will be enthralled by the enormous range of games they can sample in Gamerbase and then purchase them accordingly. It is a fascinating new marketing ploy.