Retailers get behind heavy Halo 3 push

Events include midnight promotions, giveaways

By George T. Chronis -- Video Business, 9/21/2007

SEPT. 21 | Microsoft Game Studios predicts next week’s release of Halo 3 will push the franchise past $1 billion, and retailers are doing their part to get it there. Microsoft estimates that 10,000 U.S. retailers will be holding midnight Halo 3 promotions.

First-day sales for Halo 3 are expected to top the $125 million that was taken in during the first 24 hours after Halo 2 hit the streets in November 2004, fueled by more than 1 million pre-orders and Halo 3 street date events at retailers running the gamut from Wal-Mart to 7-Eleven.

The title could even best the $151 million one-day box-office record held by Spider-Man 3.

Andrew Wang, owner of the Play N Trade store in Buena Park, Calif., said he has already received more than 80 Halo 3 pre-orders, despite the majority of his business being in used game sales.

Michael Pachter, managing director of research at Wedbush Morgan Securities, estimates that more than 3 million Halo 3 units will be sold during its first 12 days in circulation.

“We expect the game to be a driver of console sales and believe that Microsoft’s unit sales for the Xbox 360 could exceed 400,000 in September, the highest figure for a non-holiday month since launch,” Pachter said in a research note.

According to NPD Funworld data, 277,000 Xbox 360s were sold in August, compared to 404,000 Wiis and 131,000 PS3s.

Among retailers, Radio Shack Corp. is leveraging Halo 3 to entice consumers into shopping for videogames in its 6,000 locations by offering the game for pre-order online with in-store-only pick up on Sept. 25, the same day dedicated game sections will appear at many of those locations.

Window posters and in-store signage have been promoting that 7-Eleven stores have been taking Halo 3 pre-orders, will sell the game starting at midnight and will merchandise the game after its release. The convenience chain participated in the Halo 2 launch but is going much further in promoting Halo 3 by co-sponsoring a sweepstakes with Mountain Dew. Prizes include copies of the Halo 3 Legendary Edition, Halo 3 special edition Xbox 360s, collectible statues, wireless controllers, three collectible 3D Halo cups and a trip-for-two to Dallas grand prize for a voice acting role in Ensemble Studios’ Halo Wars strategy game. All those entering will receive a 48-hour trial subscription on the Xbox Live online service.

For the Mountain Dew promotion, PepsiCo developed a citrus-cherry Game Fuel flavor of the soft drink featuring extra caffeine that went into distribution in selected markets on Aug. 13 and is available for only 12 weeks. The flavor also was added at 7-Eleven as a Slurpee option. In addition to radio spots, PepsiCo is promoting Game Fuel standees and floor displays featuring the lead Master Chief character from the game. Halo developer Bungie Studios designed the Game Fuel aluminum bottles.

Already an Xbox 360 sponsor, Burger King will promote the Halo 3 launch for one month starting Sept. 24 with in-restaurant merchandising and Halo 3-themed packaging intended to drive customers to exclusive game content online.

Pontiac sponsored a “First to Own” promotion in which 1,000 winners can get a copy of Halo 3 before its release. Entrants had to unscramble a trivia game online for a chance to win. Of those who answered correctly, 2,500 also were invited to “First to Play” events at IMAX theaters in San Francisco and Manhattan last week.

More traditionally, Microsoft is co-sponsoring four major midnight retail events around the nation on Sept. 25 at Best Buys in Bellevue, Wash., and Fifth Avenue in New York City; the GameStop in Universal City in Los Angeles; and the Northwest 13th Terrace Circuit City in Miami featuring Dolphins’ football wide receiver Chris Chambers and linebacker Joey Porter.

In addition to opening at midnight, Best Buy is picking up the tab for three days of free Xbox Live Gold memberships Sept. 25-27 for Halo 3 purchasers and giving a $10 gift card and free shipping to online customers who buy an Xbox 360 accessory in addition to the game.

Wal-Mart is not only promising midnight store openings but also dedicated Halo 3 check-out lines. Circuit City also will open 91 superstores at midnight.

Game Crazy locations are putting on midnight party events, with exclusive giveaways and promotions. Halo 3 also will be available to rent at all Hollywood Video and Movie Gallery locations beginning Sept. 25. For example, the Miracle Mile Hollywood Video in Los Angeles is expecting four copies of the game to rent.

Blockbuster Video is offering a $10 gift card exclusively to its online subscribers who go into one of the company’s bricks-and-mortar outlets to buy the game.

Halo 3 is arriving in three SKUs: a $59.99 Standard Edition, a $69.99 Limited Edition and a $129.99 Legendary Edition.

But Ron Villarreal, general manager of Next-Gen Video Games in Los Angeles, said the word he got from his suppliers is don’t count on stocks of the $69.99 and $129.99 packages being readily available.

“We’re only bringing in the $59.99 standard edition for sale. Even then, availability is tight,” Villarreal told VB. “We’re being told that most Game Stops will have a hard time stocking enough units to meet their pre-orders, let alone walk-in customers the first week.”

One reason for the tight supply is that Halo 3 is a worldwide release, launching in nearly 40 countries and 17 languages during the same week.

Cindy Spielvogel contributed