Blockbuster is Playing Games

Blockbuster Inc. (Dallas) has announced that it will be increasing its video games offerings and the floor space devoted to the merchandising of these games.

By Memorial Day, the video-rental giant said it will reconfigure the games sections of 4300 company-owned stores, taking out old wooden shelves and installing metal shelves that hold more merchandise.

The dedicated floor space for games will be expanded in many store locations and each game platform — including GameCube, PlayStation 2, Xbox and GameBoy Advanced — will have its own section, complete with rental, retail, previously played product and a selection of accessories and publications. The company's officials declined to say how much they will spend on store renovations and additional inventory.

“Blockbuster's goal is to become the leading one-stop location for gamers who want to buy or rent their games,” said Nick Shepherd, the retailer's executive vp and chief concept officer. “We have a brand that is already highly associated with games, the marketing ability, a large network of stores and an extensive database of millions of active gamers.”

Last month, chairman and ceo John Antioco told analysts Blockbuster wants to become the top destination for DVDs and games, but he acknowledged that many movie-renting regulars don't think about renting games at the stores. “We think we can fix that,” he said.

With new console systems from Sony Corp., Nintendo Co. and Microsoft Corp., U.S. sales of video games rose 10 percent last year to $4.6 billion. While many small neighborhood shops sell games, the trade is dominated by large chains such as Wal-Mart, Toys R Us, Best Buy and Target, and such specialty retailers as GameStop and Electronics Boutique. Video games currently account for about 12 percent of Blockbuster's revenues.

The Blockbuster announcement comes a week before the Electronic Entertainment Expo (E3) in Los Angeles, the interactive gaming industry trade show that traditionally kicks off retailers'busiest six months.