VSDA SCORES WITH GAME CONFERENCE

DAN ALAIMO

CHICAGO -- Even with the conspicuous absence of Nintendo, the Video Software Dealers Association's first Videogame and New Technology Conference here April 10 and 11 got high marks from most retailers and exhibitors in attendance.

The conference attracted 40 exhibiting companies and about 550 people, including 450 from the ranks of retail and distribution. Key executives from Wegmans, Roundy's, Hannaford Bros. and racker Video III were among those from the supermarket trade seen at the show.

"It's great to see VSDA focus on this particular area," said Teri Severinsen, manager of video services at Roundy's, Pewaukee, Wis. Severinsen and several colleagues from Roundy's were attending the seminars and working the exhibit area.

"We want to see what is new, what is coming up and how it is going to affect us," she said.

"The show has given me a broader view of the games market and it has encouraged me to get more involved in game sell-through and accessories," said Gregg Wright, president of Video III, Orem, Utah. Video III racks the video rental departments of about 100 stores for Safeway, Lucky and Buttrey.

"But I'm kind of disappointed that Nintendo isn't here," he said. As a result of the exposure to Sega's products and program, his company is now looking to expand significantly with Sega. "That is mainly because of their desire to work with the rental market," said Wright.

Nintendo of America, Redmond, Wash., has consistently opposed the rental of its products in the past and declined to participate in the show. However, shortly after the conference, the company announced a retail rental program, signing up West Coast Entertainment, Philadelphia.

Nintendo's chairman, Howard Lincoln, will keynote the Summer Consumer Electronics Show in Chicago in June, an event that Sega has pulled out of. Sega instead will hold its own sales meeting May 22 to 28, with key retailers, in Orlando, Fla.

Nintendo still has no plans to participate in the big VSDA convention this summer in Las Vegas, said Perrin Kaplan, manager of corporate communications. "But each day is a new day," she said.

"I hope that they are at the convention this year," said VSDA's executive vice president Rick Karpel, speaking during the conference and before Nintendo's new rental program was announced. "It is more likely than ever in the past that they will be there," he said.

Sega of America, Redwood City, Calif., has committed to sponsor a dinner at the VSDA show.

At the VSDA games conference, with rival Nintendo out of the picture, Sega took full advantage of the opportunity to speak directly to video retailers. The company was a major presence, with four of its executives addressing the conference.

While sharing essential information about the games business, they also were not shy about touting Sega's products.

"It was a good presentation by the vendors," said a video buyer from a major Northeastern chain, who asked not to be identified. "But I would have liked more basic education on the games, the formats and the hardware. It strikes me as much more of a sell job than we need," the buyer said.

"But for the first time out, it is impressive. I think VSDA is moving in the right direction," the buyer said.

"I think the conference is terrific because it creates awareness for an area of the video business that needs it," said Vern Fross, senior vice president of sales and marketing at Ingram Entertainment, La Vergne, Tenn., the nation's largest video distributor. "There's a lot of business to be had in games," he said. "This is a big first step toward creating a forum that is desperately needed in our industry," said VSDA's Karpel. "We got a fairly good representation. Now that they know a little bit more about us, it is going to be fairly easy to get them here next time."

Exhibitors were pleased with the show's maiden voyage. "The show is going surprisingly well," said Joe Morici, senior vice president of sales and marketing for game developer Capcom U.S.A., Sunnyvale, Calif. "You will see more and more video retailers becoming a larger part of our business," he predicted.

The exchange of concerns and information at the conference paid immediate dividends for Morici. For example, he found out that the retailers wanted the point-of-purchase material the company had created, but which was gathering dust in the warehouse.

"We definitely will go to VSDA's July show," he said.

Bruce Reilly, director of national sales at Sunsoft Interactive Entertainment, Cypress, Calif., another games developer, wanted to talk to retailers and find out their needs and concerns. "Within the first 20 minutes of the show, I had some really good feedback that made the investment [in attending] worthwhile," he said.

Reilly said he is now interested in participating in the big VSDA convention.

"It is another step in bringing the VSDA membership more in touch with the interactive entertainment industry," said Barry Taylor, vice president of sales at Acclaim Entertainment, Oyster Bay, N.Y. The game development company wanted to create more retailer awareness of games so they could maximize their marketing opportunities.

"The reception from the attendees is great. These people are very serious about learning more about the games business," said