Gamexpress Growths in the Video Game Market Place
MEXICO CITY, March 1, 2011 /PRNewswire/ -- For almost a quarter century, Gamexpress (GX) has been Latin America's foremost video game distributor. GX has thrived by driving video game sales in their core market, Mexico. GX possesses an understanding of the largely untapped Mexican territories, which holds tremendous growth opportunities for video game publishers.
"Mexican territories are an untapped market for publishers. Currently, our market estimates reveal that video games sales reach an estimated 40 percent of the total population. At Gamexpress, we believe that reaching at least 60 percent of the video game Mexican market is more than possible in the immediate future. Some of our partners who have been the first to invest in this market have enjoyed strong financial results and have built lasting brand awareness within the Latin marketplace," said Abraham Bautista, Chairman of the GX Board.
Some of Gamexpress' key partners, such as Take-Two Interactive, Konami Digital Entertainment and Ubisoft, have displayed values such as foresight, flexibility and market adaptation, and have achieved tremendous growth levels of more than 100% in 2010 vs. 2009, YOY using the GX revenue stream.
"2010 was a great year for Gamexpress. We enjoyed a smooth and highly successful year under the guidance of recently appointed CEO Veronica Ostos along with her team. Our partners agree that our distribution channel provides them with easy access and cost effective solutions to reach this ever-growing market," said Bautista.
GX believes that by combining core company values of honoring commitments with a fine-tuned commercial strategy with more inclination towards restocks, and overall great work and enthusiasm, they achieved a 7% YOY Gamexpress Revenue increase and a Q4 CY (Holiday) YOY Revenue increase of 25% with an internal estimated market share of 75% of 3rd party software sales in Mexico.
In addition to distribution, GX recently engaged in a successful 3PL-like business distribution model with the leading installed-base 1st party companies, attaining an impressive three-digit growth in Gamexpress served outlets.
2010 also marked GX's foray into publishing. Slang, the publishing division of Gamexpress, launched Lucha Libre AAA Heroes del Ring, their first PlayStation 3 and Xbox 360 title. The game was the first-ever culturally relevant title delivered to the Hispanic community. Lucha Libre AAA Heroes del Ring garnered a distribution deal with Konami reaching over 12 countries including the US & Canada. During the holiday season in Mexico, Lucha Libre AAA Heroes del Ring made it to the TOP 5 sales chart in 3rd Party titles for those platforms while it earned mixed results in other countries.
Slang invested in an extraordinary marketing campaign, including their first venture into E3 as an exhibitor, making a notorious and relevant splash with the launch, and building a strong relationship with Televisa for Hispanic targeted video game development.
Overall, Gamexpress' 2011 vision is to fulfill all business opportunities that remain out there. GX's key objectives include growing its distribution to a full market spectrum outreach and catering budget priced titles to all of customers, sustaining a strong commitment to exploring 3PL-like business model where need be and expanding distribution to other territories in the region. GX estimates a 25% projected growth in revenues for 2011.
Slang's goals for 2011 include publishing an additional six to 10 console video game SKUs, based on highly relevant Mexican IP's such as "El Chavo del 8", building relationships with independent development studios to publish high quality games for US and LATAM, reinforcing their mission of connecting with the Hispanic market, and securing strategic alliances with European and Asian publishers and studios in order to introduce their content into LATAM.
Gamexpress is committed to the progress of the local industry, and through Slang will continue to support new development studios in Mexico, reaching out to mobile and Facebook/social network platforms as well.
About Grupo Televisa:
Grupo Televisa, S.A.B., is the largest media company in the Spanish-speaking world based on its market capitalization and a major participant in the international entertainment business. It has interests in television production and broadcasting, production of pay-television networks, international distribution of television programming, direct-to-home satellite services, cable television and telecommunication services, magazine publishing and distribution, radio production and broadcasting, professional sports and live entertainment, feature-film production and distribution, the operation of a horizontal internet portal, and gaming. Grupo Televisa also owns an unconsolidated equity stake in La Sexta, a free-to-air television venture in Spain.
SOURCE Gamexpress
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