'Value' games distributor sees sales increase despite retail industry woes

Developer and "value games" wholesale distributor Alliance Distributors Holding reported a jump in year-over-year sales to $20.8 million last quarter (ending December), as well as a slight increase in its net income. One of the strategies Alliance has employed to achieve its growth -- as others in the video game industry are suffering declines -- is emphasizing its "value games" business, or relatively cheap, non-new releases that retain their value and popularity over time, such as titles based on family-friendly licenses. The company distributes accessories and software for around 75 third-party vendors (e.g. Electronic Arts), and also handles many new releases like Soulcalibur V and Final Fantasy XIII-2. It develops smartphone and social games (Updraft Jack) through its subsidiary Metaversal Studios, too. Through its operations, the company increased its October-December 2011 revenues by 7 percent to $20.8 million, compared to $19.4 million during the same period in the previous year. Its year-over-year net income for the second quarter grew from $266,000 to $360,000. Alliance noted that for the first half of its fiscal year (ending June 2012), its sales also increased by 2 percent to $31.1 million from $30.6 million, while net income rose to $406,000, compared to $270,00 in the previous year. "We are very gratified to have achieved revenue and income growth during a period of double-digit declines throughout most of the video game industry," says Alliance chairman and CEO Jay Gelman.