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RadioShack Adds Games to Shelves

| 20 Sep 2007 14:20
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Retailer RadioShack initiates a program to sell games for the holiday season to boost profits.

Rumors have been circulating since Friday that electronics retailer RadioShack would begin stocking videogames across its 6,000 locations. A report titled "GameShack?" by Credit Suisse analyst Gary Balter first hinted that the chain might be adding game software to its stores. Joystiq confirmed the rumors with an unnamed manager who stated that games will be on sale on September 24, the day prior to Halo 3's release. "Every major launch title for the holiday season," a number expected to be fourteen titles, will be offered alongside Xbox 360, Wii and Playstation 2 hardware in 2,500 stores.

Short-term, the addition of game software and hardware could compliment RadioShack's high-margin accessory business. However, the additional sales created by the program aren't expected to solve longterm problems underlying the company. Analyst Bill Sims explained in a research note, "Our channel checks confirm market speculation earlier today that RadioShack plans to sell video game software in their stores in time for the holidays. We don't believe the addition of video games is a thesis changer, and reflects, in our view, RadioShack's ongoing struggles to maintain the relevancy of their concept."

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