Best Buy is hammering another nail in the coffin of CDs. The retail giant is planning on reorganize its stores before the holidays, devoting space traditionally reserved for CDs and DVDs to video games instead.
According to the Daily Finance, Best Buy is planning to use the space to emphasize what they consider higher-growth categories such as new platforms and pre-owned games. They also plan to use it to demo peripherals like the Move and the Kinect, which require more space than traditional demo stations.
“They are no doubt the best operators in the business, which is why they’re the only ones left,” Pacific Crest Securities analyst Andy Hargreaves said. “But retail itself is hard, and when your product prices are dropping, it’s even harder. Best Buy needs a new product cycle. Maybe it’s motion-based gaming, maybe it is 3D TVs or tablets, but they need a new product.”
