With Amazon’s recent announcement that it’s testing a streaming service for video games, there was some speculation on RetailWire that this is “one category too many” for the giant e-commerce retailer. I disagree:
Amazon’s expansion into new businesses doesn’t appear — so far — to have affected its core brand promise, which is to deliver a wide variety of products quickly at a competitive price. In fact, delivery speed is getting faster: I bought a pair of shoes on Amazon on a recent Saturday that showed up the next day (a Sunday) for about 10% less than I would have paid at Nordstrom. And, of course, shipping was free.
Video games may be a logical extension of Amazon’s streaming businesses, or they may turn out to be a misfire like the Fire Phone. Either way, Amazon is prepared to jump on the success — or pull the plug on the failure — quickly. So I don’t see it as a misfit with bigger volume opportunities such as grocery delivery.