We've reported on Move as an important factor in growing the accessory sector at retail, but with hardware and software figures falling year-on-year why is the success of plastic add-ons so important?
Accessories Make Money
For retailers, accessories are key: profits made from add-ons far outweighs the margin on a new game or piece of hardware, hence why sales assistants are so keen to sell you a new controller or headset. Profit margins on accessories can rival those on the sale of pre-owned games, but crucially the manufacturers see a slice of that profit, keeping everyone happy.
The revenue generated from accessory sales across North America in October was $142m, whereas hardware sales generated $280m. This is a tiny gap considering the price difference between consoles and accessories, indicating that customers are willing to spend money on game-enhancing accessories to extend the lifespan of their consoles rather than pick up a brand new machine.
Whilst hardware and software revenues are falling, increasing accessory sales allows retailers to make up the shortfall, using this extra income to purchase new games from publishers and distributors to keep the retail chain alive. Buying accessories helps put new games on the shelves, as strange as that seems.
Accessories Validate Retail
With the move towards digital distribution, retailers will welcome any addition that gives them an advantage over download-only platforms, and as we all know from bitter experience you can't download an accessory.
That's one of the reasons many retailers have thrown their support behind PlayStation Move – the physical, tactile nature of the controller lends itself perfectly to the retail environment. It gives customers a reason to spend in store, with sizeable returns for the retailer on each purchase. Everybody wins.
Growth is Good
Hardware figures are down significantly year-on-year, software sales – with a few exceptions – are moving the same way. Since the launch of PlayStation Move, the accessory sector has shown two consecutive months of growth, and that looks set to continue for the near future at least. Anything that helps to arrest the recent descent of gaming spend should be welcomed, even if it's not as exciting as a blockbuster game or new console.
"Speciality Controllers" like Move look to be part of the way forward for this generation, bringing millions of dollars into gaming retail and supplementing Sony's income suffering from the decreased sales of hardware. When it comes to accessories, retailers and manufacturers love them – and we should too.
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