ConsumerIT - For Europe's High Volume PC Retailers, Distributors & Builders

When all else weakens, it seems Gaming will be the best product standing. Yes, it is a market supercharged by recent software releases that have as much impact as a new Harry POtter book on book sales. Yes, it is a market driven by passion.

But gaming also benefits from a surge in casual gamers. A recent study by Pew Internet found more thanhalf of adults in USA play video games. And 23% of those over age 65 say they play at least sometimes.

Only 3% of teens don't play any video games at all, and gender discrepancy between adult men and women players is only about 5%.More than half of American adults play video games and 1 in 5 play just about every day.

Go Pew Internet

After struggling to turn a profit for the past 7 business quarters, troubled US retailer Circuit City filed for Chapter 11 bankruptcy protection—only one week after they said they would close 155 of more than 700 stores in 55 markets by the end of the year (and firing about 17.0% of its work force in USA).
         While most think consumers have cut back, and retailers will have to rely on price, acting CEO James Marcum spoke in September of improving the "customer experience" through spruced-up stores and better signage. More than 72% of Circuit City customers also shop at Wal-Mart regularly, according to America's Research Group (compared with 55.0% who frequent Best Buy.)
         Circuit City has $3.4 billion in assets and $2.3 billion in debts (Aug. 31)--and it's getting worse.

Go How Not to Do Retail

With sales direct to consumers at only 2% of Cisco’s $40 billion business, Cisco wants to add yet another box or two to the home network. Cisco will introduce at CES a line of home entertainment products, including its own wireless digital stereo.

The appeal of the residential market is obvious. HP has updated its MediaSmart Server, a home network appliance for data distribution and backup, and something similar is may be coming from Apple.

Cisco, rich with $27 billion in cash in a recession, has no interest in selling TVs but it assumes that eventually all TVs will connect directly to home networks.

Ultimately, the company says it expects to make the most money by offering home video conferencing. For Big Business, Cisco sellsTelepresence rooms to corporations for $40,000 to $300,000 each. Cisco is on record this year saying it will bring a cheaper version to consumers in the very near future.

Go Cisco Goes Home, Your Home

Go ECI, Europe's Home Networking Market

Fry's Electronics VP Ausaf Umar Siddiqui allegedly bullied his way into $200+ million in kickbacks from vendors (who wanted space on retail shelves) as he tried to pay off his Vegas-size gambling debts.

Common in some markets, such kickbacks are relatively rare in USA and will probably earn Omar (as Mr. Siddiqui, son of a Pakistani diplomat, preferred to be called) a jail sentence for embezzlement, wire-fraud and money-laundering.

The "commissions" were so large that Lead Data International complained "due to huge prepay, our cash flow is in big trouble now..."

In another example, Fry's paid Phoebe Micro in Fremont more than $76 million from 2003 to 2008, overpaying by 31.67% ($24 million) then allegedly "kicked back" to Siddiqui.

Go The Buyer From Hell