Best Buy is on the precipice of throwing a new video game magazine into the ring of an already cluttered industry. The name [email protected] 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 sometime at the end of June. This is the second attempt by Best Buy to jump into the Game Magazine Market. The first time was a magazine called Gamestar (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” in terms of 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 prior to 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 time line 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 financial muscle and name recognition. I’m not sold on the long-term strength of Best Buy and regarding the video game publication business, they are replicating something that has been “replicated” 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 in terms of 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? Are they seeing the big picture, or are they just getting swept up in the quick profit fix?
Source: The Game Beat