WAR GAMES

PAT NATSCHKE LENIUS

Is it tough enough? Is it bloody enough? Is it real enough?

These are some questions supermarket video managers will have to ask themselves in evaluating video games offered for rental in the fourth quarter.

Fighting/action/adventure video games reign as the strongest genre in the category. In the fourth quarter as game rentals escalate, particularly during school holiday periods, games like Mortal Kombat II are predicted to be surefire winners, retailers and distributors said.

Mortal Kombat II was named by five sources as the anticipated leading game title this season.

"Any game that has been in the arcade like a Street Fighter or Mortal Kombat, those are the games the kids want to play. They will rent them from us because they don't have to keep feeding quarters in the machine to play," said Jodi Tyler, video specialist at Pick 'n Save Stores, a division of Roundy's Inc., Milwaukee.

Tom Hembree, executive vice president of store operations at K-VA-T Food Stores, Grundy, Va., gave a thumbs-up to Mortal Kombat II as this year's hot fourth-quarter game because of how well the first Mortal Kombat performed.

"We see a trend toward more action and fighting games. Our customers are showing more of an interest in sporting and fighting games," Hembree said.

Rick Ang, director of video operations at Raley's Bel Air Markets division, Sacramento, Calif., pointed out that Mortal Kombat II "crosses the line of animation" and "is pretty close to a live-action" game.

"The character movement is very real," he said.

The trend seems to be toward action/adventure imagination games in which the kid can pretend he is one of the fighters and becomes part of the game, Ang said.

"Action games that are big in the arcades will be hot in the fourth quarter. The first Mortal Kombat was really big and we expect Mortal Kombat II to be a hot title," said Steve Gretzinger, video coordinator at Angeli Foods, Iron River, Mich.

Rod Murray, merchandise manager of electronics at Ingram Entertainment, La Vergne, Tenn., said it looks like Mortal Kombat II may be even bigger than the first Mortal Kombat.

Other action/adventure game titles expected to do well in the fourth quarter include Sonic & Knuckles, Donkey Kong Country and Earthworm Gym, retailers said.

"Sega's Sonic & Knuckles is expected to change the face of video games. Mega Man was hot in 8-bit and is becoming popular in Super Nintendo. We have heard a lot of good news about Earthworm Gym, a sidescrolling game like Sonic & Hedgehog. Nintendo is

expected to have a big ad campaign for Donkey Kong Country," said Ang of Bel Air.

However, Sandy French, video coordinator at Thrifty Food Stores, Burlington, Wash., said the type of game showing the most growth varies, depending on whether it is Sega or Super Nintendo.

"It seems with Sega games, the big demand is for sports. With Super Nintendo, customers are looking for fighting-type games," she said.

"Sports games are growing, but not as rapidly as they were. A year ago I would have said sports was the hottest category or showing the greatest growth. But now that is leveling off. "What is surprising is how strong fighting games have been and continue to be. We have seen four to five releases in fighting video games in the last few months. There is still a real strong desire for the fighting game. That tells us the customer base for games is still dominated by 12- to 16-year-old males," Murray of Ingram said.

While boys' action-fighting games are expected to dominate fourth-quarter rental, retailers and suppliers are mixed in their opinion on other potential niche segments, such as games for children and females.

"We do really well with children's videos for children in the 3- to 5-year-old range with Mickey Mouse and Flintstone-type games," said Tyler of Pick 'n Save.

At Bel Air in California, games for females and younger children don't seem to do well at all, Ang said.

"Interest in these games is primarily male. It seems that the little kids don't want to play the games geared to little kids. We tend to stay away from smaller children's games. We may bring in some copies, but not in the depth of other types," Ang said.

French of Thrifty said there are not enough games geared for younger children.

"This is a real problem. A lot of people come in and are real particular about what games their kids will play. I would like to see ratings on all games, especially for the grocery trade," French said.

The video supervisor for a Midwest grocery wholesaler who asked not to be named said, "We rely on our distributor to guide us in the right direction with video games. They usually recommend games that have a lot of action as opposed to golf or football or games that would appeal to females. "We are not very deeply into games for small children, but there may be growth potential there. As we move into fall and early 1995, we intend to re-examine that portion of our video and gaming business. We think there is tremendous business to be done there."

At Pick 'n Save stores, basketball video games are popular rentals. Rentals of soccer games increased as a result of publicity for the World Cup, but since then have leveled off again, Tyler said.

"We see growth in the virtual-reality type games. That trend is expected to continue in the fourth quarter," said Andy McPheeters, nonfood buyer and merchandiser at Stanley Stores, Bay City, Texas.

Gretzinger of Angeli Foods said he is getting more customer requests for role-playing games in which the child can be a character in the game.

"There are not too many role-playing video games out there, but I am sure video companies will start addressing that," he said.

The video supervisor of a small Southern chain said she sees the most growth in video games related to sports or combat games, and that will most likely continue to be the trend in the fourth quarter.

"From our experience, sports games dominate everything. Most games are geared to 14-year-old males, which is a prime time to be involved in youth sports and activities. There is a lot of interest in baseball and football," said Ang of Bel Air.

"As competition has heated up and the big companies get bigger, there are smaller third-party companies trying to find niches. For example, Hi Tech Expressions is bringing out video games for kids ages 4 to 8 such as Barbie and Sesame Street. "The young kids' market is not huge but it is a market and they are focusing on it. The same could be said for the female market. There are small third-party companies aiming at the young female, such as Toho, with Ranama 1/2 II, a fighting game with all girls, which is coming out in October," said Murray of Ingram.

"Sports has always been a big category in games. It appeals to the older person, and that expands the reach of the video game business. As sports games get bigger, appealing to a larger and older audience, that will boost game play," said Steve Apple, vice president of communications and new business development at Game Power Headquarters, Philadelphia, an affiliate of West Coast Entertainment.

"Game play is improving in general across the board. Some software publishers are targeting their games to females," Apple said.

Light-hearted adventure games such as Sonic & Knuckles are more likely to appeal to women and little girls, he said.

Most of the retailers contacted said they base their buying decisions about video games on what they observe during visits to arcades and what customers request.

"I go to the arcades and watch the kids play. I don't play the games myself, but I watch what the kids are doing and listen to what they say," said Tyler of Pick 'n Save.

Hembree of K-VA-T said his company uses Ingram's rating system to help decide on which games to carry.

"We educate ourselves by listening to our people and the Ingram people," he said.

"Usually the buying decision is based on rentability and what the kids are asking for. There is an arcade down the street that helps us keep up with what kids like. We subscribe to magazines about gaming and also sell the magazines to the kids," said Gretzinger of Angeli Foods.

Ang of Bel Air said his buying decisions are based on arcade activity, recommendations from the kids themselves and industry magazines.

The price of the video game is an issue for some retailers.

"I don't want to pay $199 for a game," said Tyler of Pick 'n Save. "As long as it stays around the $50 mark, I don't worry. When it gets to $60 or $65, I start to step back and ask if it is worth it."

"Because of the increased competition between Sega and Nintendo to rule the holiday sales, consumers will be bombarded with millions of dollars worth of television advertising," said Apple of Game Power Headquarters. "We expect there to be greater awareness about video games this year than any other year."

Play Action in the 4th Quarter

The market appears to be demanding more fight, action and realism in video games. Also, licensed characters can enhance a game's appeal. But sports, virtual-reality and role-playing games, although not selling as fast as fight and action games, are broadening the video games market by appealing to different age groups. Here is a list of some of the games to watch for this holiday season, according to Steve Apple, vice president of communications and new business development at Game Power Headquarters, Philadelphia.

TITLE GENRE FORMAT DATE

John Madden '95 Sports Sega & Nintendo 4th Qtr

NHL '95 Sports Sega 4th Qtr

NFL '95 Sports Sega 4th Qtr

Donkey Kong Country Adventure Super Nintendo 11/21

Jurassic Park Rampage Adventure Sega Oct.

Stellar Assault Fighting/Adven. Sega 32X 4th Qtr

Star Wars Arcade Fighting/Adven. Sega 23X 4th Qtr

Motocross Racing Sega 32X 4th Qtr