How Pokémon’s arrival in the UK changed Games Workshop forever

A few years ago, while transitioning between scenes in a period drama, I had an unexpected conversation with a fellow cast member who had worked at Games Workshop. They revealed that when Pokémon made its debut in the UK, it nearly brought the company to its knees. My initial reaction was disbelief, as I struggled to reconcile the cheerful world of Pokémon with the grim-dark universe of Warhammer.

This revelation lingered in my mind, prompting me to investigate further. I delved into Games Workshop’s financial records from the year 2000, seeking any evidence of the impact Pokémon might have had on the company. Pokémon launched in the UK in 1999, and I figured that the financial effects would have surfaced by the following year.

Upon reviewing the financial documents, I stumbled upon a curious statement from chairman Tom Kirby. He expressed disappointment regarding UK sales and alluded to “loose talk” questioning the health of the Games Workshop Hobby. This piqued my interest, as it suggested that something significant was affecting the company.

My investigation led me to discover a remark made by the CEO at the time, Chris Prentice. He indicated that the appeal of their stores had shifted towards a younger demographic, which left the company vulnerable to toy fads. He noted a sharp decline in sales to this younger age group, which seemed to correlate with the Pokémon phenomenon.

Despite my findings, I could not find any explicit mention of Pokémon in the financial reports. The data showed consistent growth in income and profit, which contradicted the idea of a company in crisis. Frustrated but determined, I took to social media to connect with former employees of Games Workshop.

Some individuals shared their memories of the Pokémon craze. One former employee recounted how kids would buy Pokémon cards nearby and then come into the store, creating a challenge for management. Another employee described how they had to redirect customers looking for Pokémon cards to a different shop. Although some staff recalled a noticeable impact, many agreed that Pokémon did not significantly affect the company’s overall performance.

However, I remained curious about Prentice’s comments regarding “toy fads.” After tracking him down for an interview, he confirmed that Pokémon was indeed a factor in a profit warning issued in mid-2000. He revealed that Games Workshop experienced a thirty percent decline in UK retail sales, a significant downturn that prompted the company to reassess its strategy.

Prentice elaborated on the company’s approach to targeting a younger audience, which inadvertently made them susceptible to competition from Pokémon. The influx of younger customers, while beneficial in terms of sales at the time, did not foster a deep engagement with the more sophisticated aspects of the Games Workshop hobby. As a result, when Pokémon arrived, these younger customers were drawn away, creating a gap in the core customer base.

While Pokémon had a noticeable impact on a segment of Games Workshop’s business, it did not spell disaster for the company as a whole. The UK retail chain was just one component of a much larger global operation. Prentice noted that although it was uncomfortable and a wake-up call, it ultimately led Games Workshop to refocus on its core audience of older gamers and implement changes that would rejuvenate the company.

Despite the challenges posed by Pokémon, the company rebounded and returned to substantial growth within six months. This experience served as a reminder of the importance of understanding their target audience and the dynamics of the gaming market. Prentice reflected on how Pokémon’s arrival was a unique event in the industry, one that reshaped Games Workshop’s operations and strategy for the future.

While Pokémon didn’t bring Games Workshop to its knees, it served as a significant turning point, prompting the company to reevaluate its direction. The lessons learned during this period have had lasting effects, both on the company’s approach to its customer base and on Prentice’s career trajectory.