Magazine article Marketing

Nintendo Sega Submit to MMC

Magazine article Marketing

Nintendo Sega Submit to MMC

Article excerpt

Video game giants Sega and Nintendo are expected to slash prices by up to 20% after the Monopolies and Mergers Commission this week found them guilty of excessive pricing and acting against the public interest.

The MMC's report could scarcely come at a worse time for the industry. Console games went out of fashion in 1994 and toys were the UK's worst performing sector in Marketing/Nielsen's Biggest Brands survey with a 12% drop in sales (see page 21).

The report comes in the wake of a series of complaints from parents to the Office of Fair Trading. Top-selling games retail for between [pounds]40 and [pounds]60 in Britain. They cost between [pounds]7 and [pounds]40 less in the US.

The MMC found that Sega, which markets Sonic the Hedgehog, and Nintendo, which sells Super Mario and Street Fighter II, were "conducting their affairs so as to prevent, restrict or distort competition".

Corporate affairs minister Jonathan Evans has warned that the companies - which dominate the [pounds]550m UK video games market - could face Government price controls if they fail to act on the report. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.