Blockbuster buys Gamestation
UK’s number two games retailer adds to Blockbuster’s home entertainment strength
October 15 2002
Blockbuster has bought the 64-store Gamestation business.
The acquisition of the UK’s second biggest electronic games retailer for an undisclosed sum strengthens Blockbuster’s position in the lucrative games market.
Sales of console and PC games are outperforming DVD and video sales. The growth of DVD sales is also changing the home entertainment market, which has been moving away from the traditional video rental model.
Blockbuster already sells and rents console and computer games in its 700 UK stores.
Chris Wyatt, president of Blockbuster International, said: “Gamestation complements our rental and retail businesses, adding a new dimension to our existing consumer proposition. We believe this acquisition provides Blockbuster with a growth concept that will be additive to earnings, strengthening our overall position in the growing games market, and allow us to leverage our learnings about the game trading business model in our markets around the world.”
Gamestation, founded in York in 1993, sells new and second hand games, and has developed a key strength by growing the market for games trading, allowing customers to play a wider range of games. Used games can be traded for store credit or cash.
Co-founder and managing director Steve Hall will remain with the business. He said: “In less than 10 years, Gamestation has evolved to become a leader in the console and computer games industry. This acquisition by Blockbuster provides Gamestation with a very exciting opportunity because we will now be able to expand our well known brand more widely throughout the UK.”
Blockbuster, owned by media giant Viacom, has more than 8,000 stores worldwide.
