Gamestation warns retail market is "exceptionally crowded"

High Street specialist Gamestation has warned that the games market is becoming so crowded that any retail outlet considering using games to reach a wider audience is a serious competitor.

"It's exceptionally crowded," said Martyn Gibbs, managing director of Gamestation. "As the market grows it will continue to dissipate, it will continue to add more entrants. Some will be in it for a quick win, and some are more interested in strategic building as part of their business plan."

From independents to supermarkets, online stores to discount chains – all are competition for the traditional videogames seller. According to Gibbs, the bricks and mortar market is thinning out as new entrants usually considered 'non-traditional' stock games to bump up footfall in their stores.

"The list really is endless and we expect it to grow. The point is, I'm not sure there is anything you can class as non-traditional for more than a moment. We don't sit on our laurels and think we're fighting against this segment and that segment. We really do need to think of everyone who could be involved in games and how that fits in with ourselves."

"The channels that do decline will fight back. We're seeing that at the moment with company's using games as a growth in their market, a growth in their consumer base and understanding how important that is to their customers."

"Using the phrase 'non-traditional' almost makes you think you've got time. You haven't," warned Gibbs.

Gibbs was talking at Games 3.0, taking place in central London today as part of the London Games Festival.