a guide to sales - piggyback.com · 35 scorespecial: making the most of the strategy guide market...

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35 www.mcvuk.com SCORE SPECIAL: MAKING THE MOST OF THE STRATEGY GUIDE MARKET MCV 27/2/2004 HOW is the 'incremental item' important to Piggyback? Guides already offer retail obvious increased turnover when sold with a corresponding game. The profit margins on guides in the UK are higher since there is no VAT on books. Long-term we see retail’s incremental value as being an attachment of one guide to one game. Theoretically that is possible and as such that should be the ultimate common objective. We want to shift retail’s input into guide sales from "do you want the guide with your game?" to "buy the guide – you won’t be disappointed". Yet, at the same time, Piggyback doesn’t boast the breadth of titles its strategy guide peers have and doesn’t play the ‘quantity’ card – why is this? It depends on whether you look at our offering vertically or horizontally. In the 15 month period January 2003 to March 2004 we will have published guides to the The Wind Waker, SoulCalibur II, Jak II, Final Fantasy X-2 and Final Fantasy Crystal Chronicles. We are privileged to work on such premium properties. Each of these games is, in its own way, an extremely sophisticated title. We currently cannot produce more guides in any 12 month period without risking the quality of the final product. We prefer to focus on a limited number of guides and to ensure that each reflects its corresponding software title in every possible way. So, what's happening in 2004 for Piggyback? Our 2004 forecast is to sell one million guides across PAL territories and we expect to publish four new titles in that period. We will release our biggest and most comprehensive guide to date in Final Fantasy X- 2 and expect even greater projects to follow in this 12 month period. In terms of consumer marketing, we will launch a marketing campaign and we aim to increase our monthly online page impressions from the current 1.2 million to 10 million at our site, which is located at www.authorised collection.com. Final Fantasy X-2 recently saw through a successful launch – how did you tie this to the release of the guide? We are aiming to publish a book which reflects the game it represents in every way. We have also worked closely with Square Enix Europe and Electronic Arts to ensure that the positioning and marketing of the guide is harmonious with that of the game. Electronic Arts is inserting a flyer into each version of the game to advertise the guide’s availability. This enhancement works as the game sells the guide and the guide sells the game. We are now expecting an average PAL attachment rate of 55 to 60 per cent over the lifetime of the product. How will Piggyback be promoting its line-up in 2004? Our marketing starts with in- game flyers. These have evolved over the years and are now presented as an insert included in each copy of the game. We have printed close to 10 million such flyers over the past five years if you include the PAL territory Platinum sales of games for which we have published guides. We will continue to work with the specialist press across Europe. In addition, we will continue to offer our guide content to partner magazines that benefit from access to our content, research and development. This is classic book marketing, whereby newspapers republish excerpts from a new title. We have been running an 18- page, four-month campaign in the UK specialist press, which started this month. This is running in the publications OPS2M, PS Max Magazine, Cheatzone and the OPS2 Special Edition. We currently have 1.2 million – 1.3 million page impressions per month at our website. We aim to increase this tenfold this year by offering new types of content. The site runs concurrently in three languages offering visitors free sample downloads of our guides, as well as creative competitions, newsletters and dedicated language forum areas. The site gives us tangible feedback on our guides, our distribution, our readers’ tastes and consumer patterns: which magazines they read, where they buy their games, what is their game wish list for 2004 and beyond. We will enhance the structure and content of this site over the coming months. What has been the biggest selling book so far? The Final Fantasy franchise has been very successful for us because these books sell for many years. The Final Fantasy VIII book is still selling at retail. The Final Fantasy X guide will average over 50 per cent attachment in the primary PAL markets by the end of its shelf life. Other guides have had greater sales success at launch, but tend to have shorter legs over time. Examples of such performances would be Metal Gear Solid 2 and Gran Turismo 3. Do certain genres of game help sell guides better? We find that games developed in Japan have a greater need for guides than games developed elsewhere. It is maybe for this reason that our licensing partners tend to be the Japanese publishers: Square Enix Europe, Sony Computer Entertainment Europe, Nintendo of Europe, Namco Limited and Konami of Europe. The exception is Disney Interactive, but that was for Kingdom Hearts, which was, of course, developed by Squaresoft. Before we start a project, we always ask, “Does this game need a guide and if so what will the proposition be?" Sometimes we decide that a guide is not required and we do not take on the project. Are there any publishers you'd like to write for? We may add one publisher to our list of licensors this year. We would hope that each of our licensing partners is happy with the respective guides we have published and we understand the long-term value of the properties we work on. We know that we must deliver a product worthy of the game it represents, and it must be on time. Many of the titles we work on are format-defining franchises. Conversely, our partners understand that we need our five to seven months’ development time on a guide and consequently, we are not in a position to publish guides to every game that they may choose to bring to market. “Theoretically it is possible to gain an attachment rate of one guide with every copy of the game sold.” A guide to sales During quiet times when the release schedule is light, enterprising independents have to fall back on periphery items – controllers, memory cards, strategy guides and the like – to boost their retail offering. MCV spoke to Louie Beatty, managing director of publisher Piggyback which produces official tie-in publications for key software releases, to find out how this part of the market will grow… Piggyback prides itself on a select range and in-depth content. Managing director Louie Beatty believes that this area of retail is ripe for growth

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35

www.mcvuk.com SCORE SPECIAL: MAKING THE MOST OF THE STRATEGY GUIDE MARKET

MCV 27/2/2004

HOW is the 'incrementalitem' important to Piggyback?Guides already offer retailobvious increased turnoverwhen sold with a correspondinggame. The profit margins onguides in the UK are highersince there is no VAT on books.

Long-term we see retail’sincremental value as being anattachment of one guide to onegame. Theoretically that ispossible and as such that shouldbe the ultimate commonobjective. We want to shiftretail’s input into guide salesfrom "do you want the guidewith your game?" to "buy theguide – you won’t bedisappointed".

Yet, at the same time,Piggyback doesn’t boast thebreadth of titles its strategyguide peers have and doesn’tplay the ‘quantity’ card –why is this?It depends on whether you lookat our offering vertically orhorizontally. In the 15 monthperiod January 2003 to March2004 we will have publishedguides to the The Wind Waker,SoulCalibur II, Jak II, FinalFantasy X-2 and Final FantasyCrystal Chronicles. We areprivileged to work on suchpremium properties. Each ofthese games is, in its own way,an extremely sophisticated title.

We currently cannot producemore guides in any 12 monthperiod without risking thequality of the final product. Weprefer to focus on a limitednumber of guides and to ensurethat each reflects itscorresponding software title inevery possible way.

So, what's happening in2004 for Piggyback?Our 2004 forecast is to sell onemillion guides across PALterritories and we expect topublish four new titles in thatperiod. We will release ourbiggest and most comprehensiveguide to date in Final Fantasy X-2 and expect even greaterprojects to follow in this 12month period. In terms ofconsumer marketing, we willlaunch a marketing campaignand we aim to increase ourmonthly online page impressionsfrom the current 1.2 million to10 million at our site, which is

located at www.authorisedcollection.com.

Final Fantasy X-2 recentlysaw through a successfullaunch – how did you tie thisto the release of the guide? We are aiming to publish a bookwhich reflects the game itrepresents in every way. Wehave also worked closely withSquare Enix Europe andElectronic Arts to ensure thatthe positioning and marketing ofthe guide is harmonious withthat of the game. Electronic Artsis inserting a flyer into eachversion of the game to advertisethe guide’s availability.

This enhancement works asthe game sells the guide and the

guide sells the game. We arenow expecting an average PALattachment rate of 55 to 60 percent over the lifetime of theproduct.

How will Piggyback bepromoting its line-up in 2004?Our marketing starts with in-game flyers.

These have evolved over theyears and are now presented asan insert included in each copy

of the game. We have printedclose to 10 million such flyersover the past five years if youinclude the PAL territoryPlatinum sales of games forwhich we have published guides.

We will continue to workwith the specialist press acrossEurope. In addition, we willcontinue to offer our guidecontent to partner magazinesthat benefit from access to ourcontent, research anddevelopment. This is classicbook marketing, wherebynewspapers republish excerptsfrom a new title.

We have been running an 18-page, four-month campaign inthe UK specialist press, whichstarted this month.

This is running in thepublications OPS2M, PS MaxMagazine, Cheatzone and theOPS2 Special Edition.

We currently have 1.2 million– 1.3 million page impressionsper month at our website. Weaim to increase this tenfold thisyear by offering new types ofcontent. The site runsconcurrently in three languagesoffering visitors free sampledownloads of our guides, as well

as creative competitions,newsletters and dedicatedlanguage forum areas. The sitegives us tangible feedback onour guides, our distribution, ourreaders’ tastes and consumerpatterns: which magazines theyread, where they buy theirgames, what is their game wishlist for 2004 and beyond. Wewill enhance the structure andcontent of this site over thecoming months.

What has been the biggestselling book so far? The Final Fantasy franchise hasbeen very successful for usbecause these books sell formany years. The Final FantasyVIII book is still selling at retail.

The Final Fantasy X guide willaverage over 50 per centattachment in the primary PALmarkets by the end of its shelflife. Other guides have hadgreater sales success at launch,but tend to have shorter legsover time. Examples of suchperformances would be MetalGear Solid 2 and Gran Turismo 3.

Do certain genres of gamehelp sell guides better?We find that games developed inJapan have a greater need forguides than games developedelsewhere. It is maybe for thisreason that our licensingpartners tend to be the Japanese

publishers: Square Enix Europe,Sony Computer EntertainmentEurope, Nintendo of Europe,Namco Limited and Konami ofEurope. The exception is DisneyInteractive, but that was forKingdom Hearts, which was, ofcourse, developed by Squaresoft.

Before we start a project, wealways ask, “Does this gameneed a guide and if so what willthe proposition be?"

Sometimes we decide that aguide is not required and we donot take on the project.

Are there any publishersyou'd like to write for?We may add one publisher toour list of licensors this year. Wewould hope that each of ourlicensing partners is happy withthe respective guides we havepublished and we understandthe long-term value of theproperties we work on.

We know that we mustdeliver a product worthy of thegame it represents, and it mustbe on time.

Many of the titles we workon are format-definingfranchises. Conversely, ourpartners understand that weneed our five to seven months’development time on a guideand consequently, we are not ina position to publish guides toevery game that they maychoose to bring to market.

“Theoretically it is possible to gain anattachment rate of one guide with everycopy of the game sold.”

A guide to salesDuring quiet times when the release schedule is light, enterprising independents have to fall back on periphery items – controllers,memory cards, strategy guides and the like – to boost their retail offering. MCV spoke to Louie Beatty, managing director of publisherPiggyback which produces official tie-in publications for key software releases, to find out how this part of the market will grow…

Piggyback prides itself on a select range and in-depth content. Managing director Louie Beatty believes that this area of retail is ripe for growth

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