Musica losing money on gaming: report

[DieGrootHammer]

DGH, the problem is bigger than just their gaming section, they are struggling in all areas and eventually will go out of business. I don't think that any brick-and-mortar business can survive against the likes online retailers. Look and Listen has the same problem and if you look carefully L&L have significantly reduced their number of stores.

Piracy (yes) and the overhead structure of shop rental and sales staff salaries etc, to name but a few, just make it to hard to compete. BTGames gas expanded significantly over the last few years, but I am also skeptical as to how long they can continue without closing sone stores in the long run.

I agree with that. The traditional business model for selling music and movies is also going to die eventually unless they start changing their business model drastically.

Nobody wants to buy a CD for R150 if you're only interested in listening to a single song. With an alternative like iTunes, where we've not only got a bigger variety of music to shop from, but where we're also able to buy individual tracks from the comfort of our own home, who still wants to go buy a CD at Musica? Much the same can be said for movies.

The best part is that as internet continues to develop in SA, the need for physical retailers of digital media is simply going to keep shrinking.

Guys, I agree with your comments. You both make valid point. Point that I also reiterate a few pages ago. The traditional shop in the mall has indeed a bleak future, what with online platforms becoming so much more competitive in pricing, range, convenience and not to mention safety.

But we are not there yet, and it's not like these stores are going to close their doors tomorrow and stop trading. The fact of the matter is still that both internet penetration and online shopping is still in it's infancy in South Africa. The trend and smart money will most certainly go to online platforms as the way of the future, but traditional businesses still must come up with some way of attracting potential client.

Yes, a day will come when all media will be online based, and will probably be streamed or saved in cloud storage, but until that day comes, traditional businesses like Musica and L&L must wake up and smell the roses; if they do not do something more innovative to pull clients, they inevitable downfall will come sooner rather than later.

Musica for me is just continuing along the same path, with no regard for any happenings of the trade. I still think they can be relevant in this day and age, but they will have to severely change their strategy and focus if they are to remain afloat.

[MissileToe]

Musica used to be good for buying games years ago. I found some old gems there at fair prices. They really need to update their website though. Last time I checked they were advertising games at sale prices from some time ago.