According to Eurogamer, GAME staff were “told to buy Nintendo 3DS consoles and games from supermarket rival Tesco” last Thursday night, and then sell them in-store as pre-owned.
The website cites an internal memo that was presumably leaked out by an employee. “Whilst we are unable to competitively match this offer in terms of a mint price,” says the memo, “it offers a great opportunity to gain 3DS consoles and games for your store’s pre-owned stock.”
The plan, it appears, was to use cash from the tills to pick up a 3DS and a game (for £209.99) and then trade it back to GAME for cash at the same price, with up to £1049.50 authorised per visit to Tesco, enough for five bundles. “Your store can do this trip multiple times,” said the memo.
The console would then be sold to any customer as ‘mint’ for the same price, but only once the brand new stock had run dry. Staff were not to “up sell” the pre-owned machines.
One GAME staff member allegedly told Eurogamer “the store he works at was reprimanded for not taking part”.
A spokesperson for the retailer told Eurogamer that “Some of our stores wanted to move quickly last weekend to build their pre-owned stocks of 3DS at the same time as their local competitors, so we gave them a process to do that. It was not mandatory, and happened in small volumes.”
It’s worth noting that despite comments over at Eurogamer, this isn’t illegal in any way.
tonycawley
I don’t see the problem. Sorry but I really don’t. Can anyone explain why this is such an issue? A business is there to buy a product and sell it for more than they bought it which is just what they’re doing here. I’ve done this loads of times with eBay.
DrNate86
They aren’t buying from suppliers though, they are taking products directly off the market, away from consumers, to sell for a higher amount than the consumer would have had to pay otherwise. I find it annoying though when just one person does it as well, my mate bought up a load of Wii’s at release to sell for a profit. I thought it was a bit exploitative really.
heywoodstock
To be honest, I don’t blame GAME. It’s business, and business has to be business. There just running a company and trying to make a decent profit like everyone else, this may not be the most ‘fair’ way to go about making a profit but that’s just how business works. GAME’s main earnings come from pre-owned games and the company thrive on the pre-owned market, getting their workers to go into Tesco and buy them cheap and sell them again is a viable option. So, although this may not be the best way to go about making profits and gathering fans, it probably will be the best option for ensuring they have sufficient pre-owned units for the weekend rush. If I was the head of the company then I would chose this option, it ensures I can make money and support my business. GAME prices are high because there a retail store, they need to finance premise fees, distribution and staff wages across their hundreds of nationwide stores somehow. I agree, fair play to GAME too.
Bilbo_bobbins
but now people know this is happening, they wont like it, whether its good for their business or not.
heywoodstock
90% of their market won’t know about it though. Only certain stores participated in the ‘scheme’ and, I don’t expect The Sun to be reporting the story tomorrow on the front page. We’re core gamers, a lot of GAME’s customers are ‘average’ people, they don’t read hardcore gaming sites. Plus, a lot of people don’t seem to mid that GAME are doing this, it will effect their image minimally and make them a fair share of profits.
amiga_dude
The issue here is a TRUE gamer will not be able to buy a 3DS because Game has brought that stock at this low price.
moshi
I have to admire there cunning strategy. Not like I have ever cued up at a supermarket early in the morning to buy 2 copies of a new game and then trade/sell the other copy straight away.
Bilbo_bobbins
this isn’t illegal, but its wrong. Game need to sort it out I think.
amiga_dude
Mark my words Game will start complain in next few years that Tesco/Asda/Sainsbury’s are puting them out business. All I can say to that is just desserts.
fattyuk
Thinking about it more, I would love tesco to become my main game shop! There club card rewards more, the pries are cheap and there ain’t no k.nob trying to give me naff info on games and gaming!
Spence1115
I’d HATE for Tesco to take over for games. One, they have such a shit selection, even worse than GAME/Gamestation/HMV (HMV actually have quite a decent back catalogue, shame they’re going broke). We’d be stuck with just their chosen top 20 games at any one time. Two, they’re rarely that cheap. Went in recently and saw Heavy Rain for £39.45, and I’m sure I saw a few over £40.
fattyuk
You missed all my points of why tesco would be good IMO lol. Imagine teco with a proper dedicated game section, like HMVs selection that you like with all the plus bits of Tescos, not be good no?
fattyuk
BTW I’ve picked up loads of bargains in tesco, all there back catalog are in the reduced section. It’s where I pick up my PSN cards ATM for 16.95 for £20. Most new games I buy I get double reward points aswell.
quinkill
wow, interesting stuff
Ryrunii
Haha, wow, they’re still doing this? I remember buying cheap PS2s from Woolworths for GAME to sell years ago! It was wrong then, still wrong now.
Paranoimia
I can see GAME having to switch to being a solely internet-based company before long. It’s the only way they’ll compete with the likes of Amazon, Play, ShopTo and the like.
fattyuk
Brilliant! There starting to feel the pinch! All that needs to be done is…. Shopto buy online, collect at tescos!
Lordfloyd
Ethics and morality are the key here, do we really want to buy from a company that continues to promote unethical behaviour.
While I don’t disagree with a company buying from the cheapest supplier, it is difficult to form an argument either for or against without knowing what price game pay for new consoles; I find it hard to believe that they pay more than what tesco is selling them for.
Spence1115
Why would they do it if they were paying less for them new?
1. No stock issues, no stores seem to have run out of stock.
2. They’re gonna sell them preowned at a lower price. If their stock was cheaper new, they could sell them at a lower price ‘preowned’ as well.
There’s no reason for GAME to pay £209 to Tesco just to boost preowned stock if their stock was cheaper, especially if they weren’t allowed to push the preowned (which it says they weren’t). They even said they couldn’t match that price instore, so logically they’re not gonna go and buy them for more money than they’re paying from their suppliers anyway, only to sell them for less than their own new supplies?
fattyuk
Because if ya think about in the real picture is…. 3DS goes from local tesco shop, to local GAME shop, directly from shelf to shelf. If the consumer can’t buy 1 from there local tesco there likely to pop to there local game instead.