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.
Crocadillian
I think people’s comments of GAME just, ‘doing business’ actually miss the potential implications for such an action.
They will lose their mass market customers regardless by offering a substantially higher price on the console, considering the combined current economic factors and high levels of competition that give consumers high levels of power over businesses (something Tesco obviously respects), they’re reducing their market image by resorting to such tactics to boost stock, and they will lose their dependable, high quality core market out of respect and trust. They really need to either evolve out of their market and position to offer services that other online and physical stores cant, or face administration soon :P.
jayjay119
Does this mean Gamestation are doing the same thing? Personally I think if GAME are struggling and charging high prices then they only have themselves to blame as Gamestation manages but more reasonable pricing, but they’re both the same company in essence!
LordMatt
I work at GAME and I haven’t heard anything about it yet. But then again, it’s understandable since supermarkets sell the games and consoles at a loss anyway.
minerwilly
Am i the only one who is baffled ! I understand why GAME are doing it but why bother selling them as pre-owned ? why not sell them as brand new at GAME’s higher price (after all, the boxes will be unopened) . Surely this would make them even more profit , ultimately if a customer wants to pay a price for a 3DS that is advertised on a shop window i dont see the issue as they could themselves have gone to tescos or shopped online .
minerwilly
Is it because its illegal or something to sell something as brand new once it has been bought , whether used or not ?
BG Tips
Yeah, I think so. Something like that.
BG Tips
I’m not really bothered about GAME. The only reason I go there is to trade stuff in if the price I can get off something from the trade-in makes it cheaper than from ShopTo/Amazon etc.
The Lone Steven
Game has just sunk even lower just to get profits. Game will probably sell this at the new price and will bump up the new price to make it seem cheaper. This could have a negative effect on the Preowned market. Game has been going downhill for years. They are a dying company and are resorting to anything just to make a profit. I have a feeling the “preowned” ones will be £250 and the new ones will be £350.:(
Pete_UK
I agree with this thinking; when was the last time Game even TRIED to be competitive with its pricing? It’s survived this far thanks to the pre-owned market, but comparing that to a Coma patient on life support, it’s no good unless the condition of the patient changes – something Game simply refuses to do.
cc_star
GAME often have titles at £17.99, usually as they’re slipping down the charts – I bought Heavy Rain, enslaved & various other titles at that pricepoint, and you could buy stuff like BlOps for £25 on launch day as they competed with others.
Sure a lot of stuff is ~£40 at launch, but once the likes of Tesco have closed GAME down (& HMV is on the rocks) you’ll be able to look forward to buying games from Tesco (albeit a much smaller choice) at around £40 to £45 instead as they won’t have anyone to compete with.
SpikeyMikey23
Considering how much custom tesco have probably taken off Game, I dont blame them, but thats just my oppinion. I dont buy stuff from Game unless its a bargain. If theres a game I have to buy right here, right now and its a choice of game or tesco. Tesco will always win. Gotta think about those clubcard points ;)
cc_star
I’d sooner be able to buy back catalogue titles, ones from small publishers & rarities that don’t make it into Tescos made-up Top 20 games they want to push that week because the behemoth publishers have told them to do so.
cc_star
Looking at most people comments people seem unsure as to how retail works
1) you buy quality goods from the cheapest supplier
2) you sell stuff for more than you bought it for
This happens in every industry, no matter whether you selling loaves of bread & tins of beans, mobile phones or video games.
Independent convenience stores are always in the supermarkets buying whatever groceries are on special, because they’re often cheaper than their own wholesaler
Ever brought a mobile phone & wondered why you have to buy £10 (card payments) or £20 (cash payments) topup when you buy it?
It’s because Carphone etc are cheaper than the distributors of mobiles phones to independent retailers, who send out armies (I literally mean armies) of friends snapping up every mobile phone deal possible, forcing the customer to buy the topup makes the deal less attractive to other retailers, but not to genuine customers
On to gaming, big company selling something for less than a smaller company can buy it for themselves? Smaller company will then go & buy it from that big company.
It’s plain & simple retailing & if the big company wants to throw their weight around and sell things at a loss to make the difference back up on rip-off food, that’s up to them, but whilst they do it they can expect every other retailer to buy it off them as well.
Foxhound_Solid
Not a bad idesa when you think about it, they are chasing profit as all businesses are