Videogame Imports PART 3 - The Ugly

Welcome to our third and final instalment to the import feature, where we now conclude by discussing some of the more distasteful macro issues regarding importing. The issues discussed here will represent the ultimate reasons why importing exists, and the eventual consequences to us the consumer, and while it's not guaranteed to bring tear to the eye, it will probably make you feel a little bitter about our beloved games industry.

1. Resistance from Manufacturers
Hardware manufacturers such as Nintendo and Sega first developed and applied territorial lockout on a mass scale for their Super Famicom and Megadrive platforms to segregate the U.S, Japanese, and European markets. The resulting effect was that games became incompatible between these regions, acting as a catalyst to the growing import market. As the games industry grew, it became inevitable that manufacturers would develop some sort of mechanism whereby they could control these various markets to reduce the threat of counterfeiting, misallocation of revenue, and to protect intellectual property rights. Territorial lockout seemed to be the best option for achieving this objective.

While gamers who have only recently been introduced to the games industry would probably have no idea that various versions of games are incompatible (despite being made by the same manufacturer), core gamers have always shown discontent with this form market discrimination. Essentially, gamers don't need to know that various software and hardware would be incompatible as any loyal and rule abiding consumer would happily buy their games from their local Electronics Boutique - with no complaints whatsoever, end of story. However, as we all know, it's much more complex than this.

Today, territorial lockout is as evident and yet invisible in the market as ever before, and there's no sign of it disappearing, while seemingly content gamers playing on their latest Playstation 2 are being segregated by the industry without knowing anything at all about it.

2. Imports as the Enemy
Manufacturers clearly recognise the existence of the import market. In speaking to numerous retailers, certain distributors who used to be a main source of supply for imports are becoming 'deterred' by manufacturers who encourage them not to pursue these avenues. In doing so, it would be more acceptable if they offered equivalent returns for factors such as delayed releases and varying prices with at least the optimisation for the PAL standard. However, it appears that the majority of manufacturers simply choose to ignore the very reasons why importing exists, with no real understanding of what core gamers want in their product.

Despite being the most promising market amongst the big three, the industry shows comparative disfavour to the European market that's reflected in the relative lack-lustre turnout at ECTS. In addition, there are consistent complaints regarding the optimisation for PAL, and the arguably inferior artwork and packaging for products, as well as price differentials between markets [see Part 2].

3. Royalty Disputes
Perhaps one of the biggest arguments in favour of incompatibility is that it protects and appropriates the royalties that are due to the relevant entities in the industry. As the emphasis in the industry becomes increasingly placed on licensing, various companies from different markets obtain the rights to certain games. As such, a game with the same name could be developed, produced, packaged, or distributed by a completely different company compared to a foreign version. Therefore, if imports became prominent, then none of the profits generated would be attributable to the domestic market and therefore becoming a major cause for concern.

Although some importing does little to affect this, and being supported by a limited audience (namely the core gamers), it is likely that the import market will remain a lucrative and specialised side of the industry. However, if importing was to become more mainstream, it is the one avenue where we as consumers can vote with our pockets, and make the industry wake up and deliver what we are entitled to as discerning gamers.

4. Rip Offs
As discussed in Parts 1 and 2, the price of imports is a key issue. In many cases, the price is somewhat justified in the sense that retailers have to pay high prices for new products during the initial periods of high demand and limited supply. However, this does not rule out the possibility where products are charged at prices that are simply not justified in any shape or form. As illustrated by the launch of the Playstation 2, where prices in excess of £1000 circulated on the Internet, there is a serious issue here where people are simply making a mockery of the industry by taking advantage of its popularity. Somewhat synonymous with other industries such as the car industry - where exotic models can be charged at much higher prices simply because of the lack of supply, the games industry has also fallen victim of its own success.

With the release of each new platform, instances that can be described in no lesser form than 'Rip offs' are prevalent. In an industry where manufacturers constantly moan about the lack of profits, the import market does appear to take a lot of the profits that essentially don't belong to them, and further explains the reasons why manufacturers want to stamp out importing.

5. Limited Consumer Choice
On the macro level, territorial lockout means that we as consumers are limited by what is available on the market. Supposedly great games such as Dragons' Quest, Radiant Silvergun, and countless others over the years, not to mention platforms such as the PC engine and Neo Geo that never enjoyed success in Europe because they were never officially released. But it's pretty much the same story in other areas too, where they also have to bear the wait for European game releases. All in all, while the whole issue of territorial lockout does well to seemingly appropriate profits, it ultimately limits what we can experience as gamers. While the industry makes decisions in terms of deciding what we can and cannot buy through territorial lockout and official releases, importing is the only way in which we can fight back by broadening our choice of products that aren't available domestically.

Import Sources (UK):

> Advanced Console Entertainment (London) - 0207-439-1185
> Another World (Stoke on Trent) Website - 01782-279294
> Computer Exchange (Rathbone Place, London) Website - 0207-636-2666
> Goblin Games & Gadgets (Norwich) Website
> Madeira Games (Norfolk) Website - 01485 570256
> New Generation (Leeds) Website - 0113 234 0120
> Videogame Imports.com (Middlesborough) Website - 0870 443 0387

Import Sources (Worldwide):

> DVD Box Office Website
> EBWorld - Website
> NCSX - Website
> Tronix - Website
> Videogame Depot - Website

Internet Auctions:

> E-Bay UK Website
> Yahoo Website

This brings us to the end of our exclusive import feature - thank you for joining us. If you have any issues that you would like to raise, please feel free to post them in the forum. See you there!