Blockbuster woos Berkley from HMV

Gerry Berkley, HMV's head of games, has jumped ship after six years at the retailer and is heading for Blockbuster Video.

An HMV representative confirmed that Berkley had left the company on 16 October. His departure comes at a crucial time for the retailer in the run up to its expansion plans, which include opening eight superstores - three in the UK and five in the US - as well as an e-commerce push.

He said: 'Berkley is looking for a fresh challenge and Blockbuster is at the same stage now as HMV was when Gerry joined. It'll give him the fresh challenge he's looking for.'

Berkley will be replaced by James Cooke, previously games product controller at HMV.

HMV will place more emphasis on sales via its e-commerce business, planning to substantially expand HMV's online operation.

Brian McLaughlin, European managing director of HMV, said: 'It was important that we established a transactional site as quickly as possible because our customers were telling us this is what they wanted. We will look to develop a full catalogue as soon as we can.'

Nick Gibson, analyst at Durlacher, said: 'It's a big market, which is well on track to hit the #1 billion point by the end of the year. There is space for HMV's expansion and Dixon's market entry. Next Christmas, there will be boosts with the Dreamcast launch - hitting the market for between #129 and #199 - and probably price cuts from Sony and Nintendo.'

@JAKARTA WARNING

The Dixons Group's software and games venture, @Jakarta, has been cautiously welcomed by the sector's leading players with a warning that specialist software retail is not an easy ride.

As revealed in PC Dealer last week, Dixons will set up a chain of software and games-only stores with the first due to be opened in November at Thurrock.

Neil Taylor, chairman of Game, said: 'Other retail sectors will look to cash in. We will watch carefully. If it moves aggressively into the market, then we will respond aggressively. However, history does not suggest that this area is (Dixons') forte. Dixons is not known for slashing its margins to the bone.'

Nick Gibson, analyst at Durlacher, said: 'The question is whether this will lead to a price war. Electronics Boutique and Game have been around a long time and know this market well.'