JoWooD - Now Swedish … sort of!
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June 7th, 2011, 14:19
My guess is that they only want the existing stock in PAL standard, because that's what they're selling, and the licenses because it allows them to replicate as much new stock as they can sell. The QA company reportedly earns money, so why not take it too.
That would be a low to no risk deal for Game Outlet. Due to their own sales channel the games in stock are worth more for them than for other publishers without distribution. The back catalog allows them to fill their pipeline without having to pay royalties, with the exception of the console tax. Note that the console tax has already been paid for the existing stock.
The new Austrian daughter company will only be needed if Game Outlet does significant business in DACH, for example licensing to other budget distris. Although I don't know for sure but I doubt they're a significant player in the German budget market. It is said to be the most competitive and most advanced in the world, with strong players like AK Tronic (also handles EA Classics!), Rondomedia (Ubi Exclusive, Green Pepper), etc.
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